CUBA CITY HOUSING AND WORKFORCE STUDY APRIL 2019

CUBA CITY HOUSING AND WORKFORCE STUDY APRIL 2019

STAFF Try Maggied Executive Directr Michelle Cahill Data Analysis Intern Jaclyn Essandh GIS Specialist Steve Genway Ecnmic Develpment Specialist Matthew Hner Assciate Planner Kate Kzil Ecnmic Develpment Specialist Kristina Tranel Assciate Planner Snya Silvers Office Manager Trevr Zenk Planning Technician COMMISSIONERS Grant Cunty Bb Keeney* Eileen Nickels Jerry Wehrle Green Cunty Arthur Carter* Nathan Klassy Mike Dyle Iwa Cunty Carl Andersn* Jhn Meyers Tdd Nvak Lafayette Cunty Jack Sauer* Timthy McGettigan Richland Cunty Jeanetta Kirkpatrick* Ray Schmitz * dentes Cunty Bard Chair Table f Cntents Intrductin... 3 Planning Prcess... 3 Outreach... 4 Study Organizatin... 5 Husing Market Analysis... 6 Key Findings... 6 Overall Husing Market Cnditins... 7 Impact f Demgraphic Changes... 9 Cst and Affrdability... 10 Husing Preferences... 12 Barriers t Hme Buying... 14 Develper Insights... 14 Recmmendatins... 16 P.O. Bx 262, Platteville WI 53818 p: 608.342.1636 f: 608.342.1220 e: inf@swwrpc.rg, w.swwrpc.rg 2 Cuba City Husing and Wrkfrce Study

Intrductin Planning Prcess In June 2018, Prsperity Suthwest Wiscnsin (PSW) partnered with Wiscnsin Ecnmic Develpment Crpratin (WEDC) and its cunty partners t undertake a study f the regin s husing and wrkfrce. The purpse f the study is t guide the near-term plicies fr cmmunities, cunties, and the regin in rder t address the existing and near future husing issues in suthwest Wiscnsin. A secndary purpse is t prvide a cmprehensive summary f demgraphic, husing, and wrkfrce data t assist in the decisin-making f lcal elected fficials and investrs. T achieve these ends, this study examines existing husing in the regin, hw apprpriate that husing is t current and future residents, and what can be dne t address the current issues within the next 10 years. PSW is a nn-prfit ecnmic develpment rganizatin whse Bard f Directrs cnsists f cunty and cmmunity ecnmic develpers frm suthwest Wiscnsin, and wh cllabratively wrk t strengthen the regin s ecnmy. Recgnizing that husing is a driver f ecnmy and cmmunity, PSW respnded t reginal emplyers and industry cncerns abut future wrkfrce husing develpment in the regin by cntracting with SWWRPC t undertake this study. The study addresses husing issues reginally, at the cunty level fr Crawfrd, Grant, Green, Iwa, Lafayette, and Richland Cunties, and at the cmmunity level fr frty cities and villages within these cunties. Members f PSW and ther reginal ecnmic develpment cllabratrs fr this plan are listed in the table belw. Table 1. Suthwest Wiscnsin Ecnmic Develpment Cllabratrs Name Agency Regin James Bwman Driftless Develpment, Inc. Crawfrd Cunty Rn Brisbis Grant Cunty Ecnmic Develpment Grant Cunty Cara Carper Green Cunty Ecnmic Develpment Green Cunty Steve Genway City f Ddgeville Ecnmic Develpment City f Ddgeville Abby Haas Lafayette Cunty Ecnmic Develpment Lafayette Cunty Barry Httman UW Extensin Iwa Cunty Bb Jnes Cuba City Ecnmic Develpment City f Cuba City Ela Kakde Platteville Area Industrial Develpment Crpratin Platteville Kate Kzil Richland Cunty Ecnmic Develpment Richland Cunty James Schneider UW Extensin City f Bscbel Funding assistance fr the plan was prvided by PSW member cunties, WEDC, and Alliant Energy. Funding was secured a cntract was signed between PSW and SWWRPC in June f 2018, with wrk beginning immediately. As part f the cntract agreement, PSW members were respnsible fr reaching ut t lcal realtrs, husing agencies, lenders, and emplyers t gather input regarding husing in the regin. SWWRPC services included undertaking interviews with develpers, expansive and cmprehensive demgraphic, husing, and wrkfrce data cllectin, and drafting and distributing the final plans t PSW. 3 Cuba City Husing and Wrkfrce Study

Table 2. Reginal Husing Study Planning Prcess Respnsibility: PSW SWWRPC 2018 2019 Tasks: Jul. Aug. Sept Oct. Nv Dec. Jan. Feb. Mar Cmmunity Stakehlder Outreach Data Cllectin (Quantitative Data) Develper Interviews Draft Plan Writing Plan reviews Final Editing Outreach Several grups f stakehlders were identified t prvide knwledge f the lcal husing market, and therefre augment the empirical data with a wrking experience f prfessinals engaged in husing. The stakehlder grups were selected based n their intimate knwledge f the lcal husing markets. PSW cunty ecnmic develpers undertk interviews with lcal lenders, realtrs, husing agencies, and emplyers. These grups were identified as having lcal understandings f the husing markets at the cunty and lcal cmmunity level. Each ecnmic develper was respnsible fr interviewing several individuals frm each stakehlder grup in their respective cunty r cmmunity. The wrk f husing agencies, lenders, and realtrs crsses lcal cmmunity bundaries and thus interviews cllected frm them are presented as representative f the entire cunty, unless specifically nted. Interview respnses frm emplyers are presented as mre narrwly representative f the lcal cmmunities in which they reside, unless therwise nted. All interviews were dne n an annymus basis. Table 3 identifies the number f stakehlders by cunty. Table 3. Interviews Cnducted with Husing Agencies, Lenders, Realtrs, and Emplyers. Crawfrd Grant Green Iwa Lafayette Richland Reginal Husing Agencies 4 3 4 1 1 2 Lenders 5 12 10 6 3 9 Realtrs 3 9 3 9 3 6 Emplyers 7 31 9 3 3 12 SWWRPC interviewed eleven residential develpers. These develpers were apprached based n their histry f wrking in the regin r expressed interest in wrking in the regin, and were selected with input and apprval frm PSW. Develpers were rganized int three categries based n the type f residential develpment and type f funding the develper typically utilizes. The three categries are lcal builders, reginal develpers, and natinal develpers. Lcal builders are characterized by typically building single family husing and almst always having a cntract that des nt invlve financing between the wner and the builder. Reginal develpers are characterized by develpers that build single-family neighbrhds, smetimes with speculative huses, and multi-family hmes. Reginal develpers ften utilize financing incentives frm the state r cmmunity t assist in building. Natinal develpers wrk n an array f prjects acrss the state and natin. Prjects are likely t include multi-family husing but can als include singlefamily residential and cmmercial. Natinal develpers are the mst likely t utilize a variety f funding surces at the state and natinal level. See Appendix F fr lcal, state, and natinal husing funding tls. Table 4 presents the number f develpers interviewed and their respective categry. All interviews were cnducted n the cnditin f annymity. 4 Cuba City Husing and Wrkfrce Study

Table 4. Interviews Cnducted with Residential Develpers Develper Categry Lcal Builder Reginal Develper Natinal Develper # f interviews 3 3 5 Characteristics Financing Scale Type f Develpment Cntract fr Building Service One tw structures at a time. Nt speculative. Typically, singlefamily hmes. Will finance the prject, but less likely t utilize state and natinal financing incentives. Builds 25+ units Multi-family structures, pssible single-family hmes. Will utilize lcal, state, and natinal financing incentives. Builds 25+ units Multi-family structures, pssible single-family hmes. Experience with all types f develpment. Gegraphic area f wrk Lcal Cmmunity Reginal Statewide/Natinal Study Organizatin The final prducts f the Reginal Husing and Wrkfrce Study are a series f plans and supplementary dcuments that present cmmunity input and data related t the current cnditin f husing in the regin. Reginally, there is a single plan that addresses the issues f the regin as a whle. At the cunty level, a plan was created fr each cunty. Lcally, individual plans were created fr frty cities and villages. 5 Cuba City Husing and Wrkfrce Study

Husing Market Analysis The City f Cuba City is lcated in suthern Grant Cunty near the Wiscnsin, Iwa, and Illinis brder. The city is in clse prximity t the City f Platteville, WI and the City f Dubuque, IA and has marketed itself as bedrm cmmunity fr prfessinals frm thse expanding cmmunities. Cuba City, itself has experienced recent industry grwth with new and expanding businesses in the city. The city has a vibrant dwntwn, a full-service grcery stre, pharmacy, and hardware stre. A high achieving schl district is an additinal asset attracting yung families t Cuba City. Figure 1: Cuba City, WI Lcatin Key Findings The fllwing sub-sectins utline key findings derived frm the cmments f stakehlders. Stakehlder cmments are summarized and presented as bullet pints. In sme instances, cmments ffer differing thughts n the existing husing market. The sub-sectins are rganized by tpics discussed by all stakehlder grups, with the exceptin f develper cmments which are presented n their wn. Sme cmments are supprted by additinal data gathered frm natinal, state, and lcal surces. All data can be fund in Appendices A, B, and C and all interview respnses can be fund in Appendices D and E. 6 Cuba City Husing and Wrkfrce Study

Overall Husing Market Cnditins The current husing market is characterized by the lw inventry f hmes and strng demand. This has created a Seller s Market characterized by a tight Supply f gd hmes, leading t inflated values. The inflated values make it harder fr buyers t qualify fr mrtgages. Sme sellers d nt want the cntingency f finding anther huse if they sell their existing hme. Strng demand fr affrdable lw-maintenance, single-family husing, and high-end husing. Sme stakehlders expect increased cnstructin in the next ten years, althugh rising interest rates are expected t slw demand and cause husing prices t gradually decrease. Additinally, new cnstructin may be limited withut the creatin f higher paying jbs. Numerus stakehlders cmmented n the pr physical cnditin f the husing stck in the cunty. Especially single-family husing that is cnsidered affrdable. Husing affrdable t first-time hmebuyers tends t have significant maintenance issues. 25% - 35% f clients are first time hmebuyers. Families with tw incmes, peple with strng incmes, middle and upper level management prfessinals can affrd new single-family husing. Sme peple with existing hmes can affrd new hmes. There is nt enugh affrdable husing. The demand fr affrdable husing cmes frm senirs, and lw -tmderate incme families. Mre units are needed fr senir apartments. There is cncern that a lack f affrdable husing will lead t increased hmelessness. The ecnmy is shifting t rentals. Stakehlders identified that cities and villages in the cunty may nt have available land, r land with necessary imprvements, fr future husing. When emplyment is high, there is a strng demand fr wrkfrce husing, which is currently the case in Wiscnsin and natinally. Demand fr wrkfrce husing is high. 2016 data shws that Cuba City has 879 existing husing units, an increase f 11% since 1990, when the city had 783 units. The trend in Cuba City has been a steady increase in husing units until 2000, and since 2000 the amunt f husing units has remained relatively stable. Of the existing husing units, 866 were ccupied and 13 were vacant in 2016. Overall, vacancy rates have been extremely lw in Cuba City, signifying that there exists demand fr additinal husing in the area. Table 5. Cuba City Ttal Husing Units 1 Cuba City 1980 1990 2000 2010 2016 Ttal husing units 744 783 900 899 879 Occupied husing units 723 765 861 847 866 Vacant husing units 20 18 39 52 13 Of the 866 ccupied husing units, 666 (77%) are wner ccupied and 200 (23%) units are renter ccupied. 1 1980, 1990, 2000, and 2010 Census, and 2012-2016 American Cmmunity Survey. Selected Husing Characteristics. US Census Bureau. factfinder.census.gv. 2019. 7 Cuba City Husing and Wrkfrce Study

Number f structures Table 6. Cuba City Owner and Renter Occupied Husing Units 2 1980 1990 2000 2010 2016 Owner ccupied husing units 543 557 645 607 666 Renter ccupied husing units 180 208 216 240 200 The majrity f husing units are single family structures, r 1-unit structures. The amunt f single-family hmes in Cuba City increased between 1990 and 2000, but has since leveled ff. The number f multi- unit structures in Cuba City is minimal and has been statinary since 1980. 3 800 600 400 200 - Figure 2. Cuba City Number f Units in Structure 1980 1990 2000 2010 ACS 2016 1 unit 2 units 3-4 units 5-9 units 10+ units Mbile hmes Similar t Grant Cunty, and t all f suthwest Wiscnsin, the husing stck in Cuba City is ld. Apprximately 21% f all husing units in the city were built prir t 1940. Available husing data identifies the ages f husing n the basis f the decade built, with the 1940s being the ldest decade identified, and all husing built prir t 1940 is gruped tgether. Anther date f cnsequence when identifying the age f structures is 1978, the year that the sale f lead paint was banned fr residential use. Over 70% f all husing units in the city were built prir t 1980, these units have a higher likelihd t cntain lead-based paint. Table 7. Cuba City Year Husing Units Built. 4 Age # % Built 2014 r later - - Built 2010 t 2013 - - Built 2000 t 2009 51 5.8% Built 1990 t 1999 127 14.5% Built 1980 t 1989 82 9.3% Built 1970 t 1979 159 18.1% Built 1960 t 1969 75 8.5% Built 1950 t 1959 108 12.3% Built 1940 t 1949 94 10.7% Built 1939 r earlier 183 20.8% 2 Ibid. 3 Ibid. 4 2012-2016 American Cmmunity Survey. Selected Husing Characteristics. US Census Bureau. factfinder.census.gv.2019. 8 Cuba City Husing and Wrkfrce Study

Demgraphic Changes Impacting the Husing Market Older generatins are selling their huses as they mve int smaller places, assisted living, r nursing hmes. Apprpriate husing fr an aging ppulatin is needed. First-time hme buyers, senirs, and thse with lwer incmes are in the mst need f affrdable husing. Custmers are lking t dwnsize r mve t maintenance-free hmes (lder generatin). Yung families and senirs are demanding affrdable husing. The existing husing des nt meet the needs f the existing ppulatin. Older generatins d nt have ptins available t them, which causes them t stay in their hmes fr lnger. This in turn causes a tighter market fr first time hme buyers. Yunger generatins are waiting lnger t purchase hmes, r may nt be as interested in hme wnership. Accrding t the US Census Bureau, there are 228 husehlds in Cuba City with at least ne persn that is ver the age 65, which is 26.3% f all husehlds. Of the 228 husehlds with an individual ver the age 65, 140 f thse husehlds (61%) represent peple 65 years f age and lder that live alne. Overall, 16.2% f husehlds in Cuba City are ccupied by an individual 65 years ld r lder living alne. 5 Table 8. Cuba City Husehlds with One r Mre Peple Over 65 6 1980 1990 2000 2010 2016 ACS Husehlds with 1+ persn ver 65 213 260 279 272 228 % Husehlds with 1+ persn ver 65 29.5% 34.0% 32.4% 32.1% 26.3% The table belw is based n the State f Wiscnsin Department f Administratin s (DOA) ppulatin and husehld prjectins fr 2030. This is ne methd f prjecting future husing demand. This analysis is driven by histrical demgraphic trends and is a brad-based and bjective frecast f future husing demand ver the next 10 12 years. Hwever, this methd des nt anticipate prpsed and/r nging develpments that will impact the ppulatin and number f husehlds in cmmunity during the writing f this plan. Fr this reasn, cmments frm ecnmic develpers and key stakehlders are utilized t develp a mre cmplete stry. The analysis begins with the number f husehlds that DOA prjects fr the city in 2030. A husehld is an ccupied husing unit. A healthy husing market will have a percentage f vacant units available, s this analysis adds 5% t accunt fr a desired number f vacant units. Additinally, sme husing will need t be replaced vertime fr a variety f reasns such as rebuilding r unexpected issues such as fires, and s the analysis adds.5% t accunt fr this. The number f husehlds and desired vacant and replacement units accunts fr a prjected number f husing units in 2030. Frm that number, the existing husing units cunted during the 2010 census and the number f building permits issued fr new husing since 2010 are remved. The resulting number is an estimate f number f additinal husing units t be built by 2030. Accrding t this mdel, Cuba City shuld nt anticipate the need fr additinal husing units by 2030. 5 1980, 1990, 2000, and 2010 Census, and 2012-2016 American Cmmunity Survey. Selected Husing Characteristics. US Census Bureau. factfinder.census.gv.2019. 6 Ibid. 9 Cuba City Husing and Wrkfrce Study

Table 9. Cuba City Future Husing Demand Frecast 2030 prjected number f husehlds 7 856 + desired vacancy rate f 5% 43 + replacement husing* 4 = required number f new husing units 903 - available number f units (2010 census) 899 - units built 2010-2017 8 14 = ttal husing units t be built fr 2030 (10) Cst and Affrdability There is demand fr husing under $180,000, entry level husing, senir cnds, and ranch style hmes. First-time hme buyers have a hard time finding affrdable husing under (defined by stakehlders as $75,000 - $120,000 and under). There is demand fr hmes in the $250,000 t $350,000 range, but limited qualified buyers fr hmes abve $300,000. There are dwn payment assistance prgrams fr first time hmebuyers. New husing is affrdable fr husehld incmes ver $100,000. Mst needed husing is affrdable and medium-priced husing between $100,000 and $200,000. The median hme value in Cuba City in 2016 was $120,800, which is lwer than Grant Cunty s median hme value f $135,400. Rughly 35% f hme values in Cuba City were between $50,000 and $99,000, 22% f hmes were valued between $100,000 and $149,000, and 23% f hmes were valued between $150,000 - $199,000. 9 Figure 3. Cuba City Hme Value: 2016 1% 2% 1% 2% 5% Less than $49,999 9% $50,000-$99,999 $100,000-$149,999 $150,000-$199,999 35% $200,000-$249,999 23% $250,000-$299,999 $300,000-$399,999 $400,000-$499,999 $500,000 r mre 22% 7 Barrilhet, Dan and Egan-Rbertsn, David. Minr Civil Divisin and Husehld Prjectins, 2010-2040. Wiscnsin Department f Administratin, Demgraphic Services Center. 2013. 8 Barrilhet, Dan. New Husing Starts Annual Survey 2010 2017. Wiscnsin Department f Administratin, Demgraphic Services Center. 9 2012-2016 American Cmmunity Survey. Selected Husing Characteristics. US Census Bureau. factfinder.census.gv. 2019. 10 Cuba City Husing and Wrkfrce Study

Residential hme sales, as cllected by Multiple Listing Services (MLS), shw that between 2012 and 2018 the average median sale price f hmes in Cuba City increased by 28%. This is significant since the U.S. Census shws the Median Husehld Incme, in Cuba City, frm 2010 t 2016 actually decreased by 4%, meaning that the cst f husing is increasing while the median incme fr the city is decreasing. Table 10. Cuba City Multiple Listing Service: Annual Residential Listings 10 2012 2013 2014 2015 2016 2017 2018 # Sales 16 19 20 28 31 36 31 Median Sale Price 103,250 105,000 103,597 109,600 114,000 124,586 132,000 A measure f husing affrdability, specifically related t the availability f an affrdable mrtgage, is the rati f hme value t husehld incme. Affrdable husing has a rati f hme value t husehld incme under 2.5. If the rati f hme value t husehld incme exceeds 2.5, husing expenses are cnsidered unaffrdable. Cuba City s median husehld incme in 2016 was $49,904. The fllwing table identifies the affrdability gap fr wner-ccupied husing and rental husing in Cuba City. The table identifies that husehlds with the median incme fr Cuba City are able t affrd a hme at the median hme value in the city. The analysis fr renters shws that rental units remain affrdable fr thse making the median husehld incme. Table 11. Cuba City Husing Affrdability Analysis 2016 Husehld Median Incme $49,904 Owner- Occupied Affrdability Median Husehld Incme X 2.5 $124,760 Median Hme Value / Annual Rent $120,800 Affrdability Gap $3,960 Renter-Occupied Affrdability 30% f Median Husehld Incme $14,971 Median Annual Rent 11 $7,463 Affrdability Gap $7,508 The fllwing table identifies a 2015 estimate f the number f husehlds with an incme less than the median fr Cuba City, and if they are renters r wners. This table shws that wner-ccupied husehlds are mre likely t have an incme less than the median fr Cuba City. Table 12. Cuba City Residents with husehld incme less than median 12 Owner Renter Ttal Husehld incme <= 30% median incme 40 35 75 Husehld incme >30% t <= 50% median incme 40 50 90 Husehld incme >50% t <= 80% median incme 85 60 145 Husehld incme >80% t <= 100% median incme 85 35 120 10 Suth Central Wiscnsin MLS Crpratin. Annual Residential Listings, Grant Cunty, 2012 2018. Accessed February 2019. 11 2012-2016 American Cmmunity Survey. Financial Characteristics. US Census Bureau. factfinder.census.gv. 2019. 12 US Department f Husing and Urban Develpment. Cmprehensive Husing Affrdability Strategy (CHAS). 2011-2015 ACS, US Census Bureau. www.huduser.gv. 2019 11 Cuba City Husing and Wrkfrce Study

Additinally, an analysis f Grant Cunty residents shws that apprximately 36% f residents require three- times their median incme t purchase a hme at the median hme value in Grant Cunty. Over the past five years, 1,294 new jbs were created in Grant Cunty. Of thse newly created jbs, apprximately 36% f thse ccupatins require three times their annual incme t purchase a hme at the median hme value in Grant Cunty. The analysis f existing and new jbs in Grant Cunty shws an existing and future demand fr wrkfrce husing based n the existing ccupatins and future ccupatins being created in the cunty. 13 Anther metric available t examine husing affrdability is the data available n the State f Wiscnsin s Hmestead Tax Credit. The Hmestead Tax Credit is a benefit available fr renters and hmewners with lw r mderate incmes designed t lessen the impact f rent and prperty taxes. T be eligible fr the tax credit an applicant must rent r wn a hme that is their primary residence. In 2016, Cuba City had 55 hmestead tax credit claims, this is apprximately 6.4% f husehlds. 14 Husing Preferences Prximity t emplyment, schls, and childcare is imprtant. Single family hmes are in the greatest demand. Ranch style hmes and hmes with smaller square ftage and less maintenance are in demand, especially with lder ppulatins. Husing that is safe and clean, withut a lt f needed repairs is in demand. Gd Schl Districts push husing demand. Sme emplyers have stated they have lst prspective emplyees r have a hard time attracting emplyees due t a lack f affrdable husing nearby. There is a demand fr newer, higher end apartments as lder generatins mve ut f their hmes. There is demand fr single-family huses in the regin but that demand des nt line up with the ecnmics. The narrative f apartments needs t change. As mentined in ur stakehlder cmments, schls are a driving frce fr where yung families chse t lcate. The maps belw indicate that ver the past 10 and 18 years, the Cuba City schl district has reversed a trend f declining enrllment. Over the past 18 years, the district decreased by 109 students r 13.8% verall, but since 2009 the district has begun t reverse that trend and has increased by 18 students, r by 2.7%. 15 The 2017 2018 Schl District Reprt Card fr Cuba City was very psitive, rating the district as significantly exceeding expectatin and scring it amngst the best public schls in the regin and the state. 16 13 EMSI. 2018.4 QCEW Emplyees, Nn-QCEW Emplyees, and Self Emplyed, All Occupatins. Accessed 2019. 14 Wiscnsin Department f Revenue. Hmestead Tax Relief, 2016. Divisin f Research and Plicy. 15 State f Wiscnsin, Department f Public Instructin. Schl District Enrllment Data 2000 2018. 16 State f Wiscnsin, Department f Public Instructin. Schl District Reprt Card, 2017-2018. 12 Cuba City Husing and Wrkfrce Study

Figure 4: Schl Enrllment Net Change 2009-2018. 13 Cuba City Husing and Wrkfrce Study

Figure 5: Schl Enrllment Net Change 2001-2018. Barriers t Hme Buying First-time hme buyers have a hard time securing a lan, in part due t the repair requirements and cnditins f the huses that are in their price range. First time hme buyers ften lack a dwn payment and clsing cst funds, as well as a reserve fr lwer priced hmes that require maintenance. Dwn payment assistance prgrams exist and can help but pr credit ratings are a significant barrier. Fr many wh are in the age range histrically assciated with first-time hme buying, the husing market decline and recessin happened as they came f age. These ptential hmewners are mre skeptical f hme wnership as a gd investment. Develper Insights The fllwing bullet pints are taken frm eleven interviews dne with a variety f develpers. The develpers that were targeted had either wrked in r expressed interest in wrking in suthwest Wiscnsin. A cmplete list f develper cmments can be viewed in Appendix E. Cmmunities shuld make the prcess fr develpers easier and mre attractive. Cnstructin csts are ut f cntrl due t demand fr materials and labr. If building csts cntinue t rise, it will result in a lack f affrdable husing. Cnstructin csts are high fr bth single-family hmes and fr multifamily. Rising interest rates are a barrier t new hme cnstructin. Rising interest rates make financing prjects mre 14 Cuba City Husing and Wrkfrce Study

expensive. Cst is mre than the purchase f existing hmes. All f the Cunty is eligible fr prgrams that fcus n rural areas. Develpers receive little assistance frm municipalities and cannt affrd the cst f building specifically fr a small percentage f hmebuyers that d nt make a lt f mney. There is an pprtunity t meet the need fr affrdable rental husing and lwer priced single-family hmes. Future demand appears strng, althugh sme develpers believe that multi-family husing is being verbuilt in larger cities thrughut the state and will cause a crash in multi-family cnstructin fr the entire state. Cities and villages need t remve red tape fr develpers. Village-wned land is attractive t develpers because it means that the village cntrls the land and it makes the prcess mve quicker. Cities and villages need t make the investment in their future. If cities bught the land and installed the utilities, it wuld be mre attractive t develpers. Trust. Cmmunities need t trust that develpers are their partners. Demand fr wrkfrce husing is high. Businesses need t pressure lcal gvernment and be vcal abut the need fr additinal husing. Get buy-in frm lcal grwth industries. Husing needs t be part f ecnmic develpment agenda. Incentives are needed t bridge the gap Infill develpment is attractive, especially if multiple grant funding pprtunities exist such as histric tax credits r brwnfield redevelpment. If Cities and villages d the math fr the develpers. If the village has a desired purchase price fr a hme, they will need t wrk with develpers t reach that end gal. Cities and villages need t plan ahead and zne fr multi-family. The fllwing table identifies the amunt f land suitable fr future husing develpment bth within the municipal bundaries f the city and within the extra-territrial zning (ETZ) bundary. The land suitability analysis identified land that may be suitable t future develpment by identifying the acreage and number f parcels that have a lw-slpe, are utside f envirnmental regulatins (fldplains, wetlands, etc.), and within prximity t existing rad infrastructure. The fllwing table identifies that 105.3 acres exist within the city that may be suitable t develpment and there are 1,851.6 acres within the ETZ that may be suitable t develpment. Table 13. Cuba City Land Suitable fr Future Husing Develpment Within Municipal Bundaries Within ETZ Bundaries Parcels Acres Parcels Acres Less than 1 acre 96 23.1 23 13.5 1 5.99 acres 2 4.3 38 112.5 6 10.99 acres 0 0 5 40.2 11 20.99 acres 1 11.6 10 167.9 21 40 acres 1 22.3 31 1070.1 Over 40 acres 1 44.1 11 447.3 Ttal 101 105.3 118 1851.6 15 Cuba City Husing and Wrkfrce Study

Recmmendatins and Implementatin The fllwing sectin was develped in respnse t what was heard in stakehlder interviews and what was determined thrugh data analysis. A principal reasn fr undertaking the study is that the current husing supply may nt be meeting the current demand, bth in terms f amunt f husing and in terms f type f husing. Fr many municipalities this was cnfirmed thrugh stakehlder interviews and data analysis. The fllwing strategies and actins are meant t infrm municipalities f their ptins t address the gaps in the private husing market. The lcal municipality and cunty ecnmic develpment staff are largely respnsible fr determining the extent t which they are willing t act twards adjusting the market in rder t incentivize private husing investment in the cmmunity. 1. Current husing markets require cmmunity investment t address gaps in private husing develpment. Existing Cnditin: Husing develpment is nt a universally accepted r acknwledged rle f traditinal ecnmic develpment agencies r municipalities in suthwest Wiscnsin. Hwever, the current ecnmy in suthwest Wiscnsin is currently cnstricted by a lack f wrkfrce, which is itself tied t a lack f quality affrdable husing. The existing husing market requires cmmunity investment t address gaps in private husing develpment. Municipalities, cunties, and cunty ecnmic develpment rganizatins have different levels f authrity and ability t act in the husing market. Actin: Identify respnsibilities and rles at the cmmunity level t undertake specific actins taken at the lcal level t attract husing suitable t the existing and future residents. Actin: Identify key stakehlders that are cmmitted and cncerned with addressing husing and wrkfrce issues. This may include lcal businesses, lcal realtrs, lenders, and gvernment fficials. These stakehlders shuld frm a lcal husing cmmittee. Actin: Crdinative activities with the cunty and cunty ecnmic develpment rganizatins. Actin: Update husing study dcument with new data fllwing the 2020 census. 2. Incentivize husing develpers. Existing Cnditin: The verall market in suthwest Wiscnsin is nt as attractive fr develpers as the mre urban areas due t lack f ppulatin density, disinterest by many municipalities in getting invlved in the market, and utdated regulatins and zning rdinances. Additinally, develpers cited recent increases in cnstructin csts and interest rates as a barrier t develpment. T address the increased cst develpers will lk fr incentives t wrk in smaller cmmunities. Actin: Ask lcal grwth industries and large emplyers in the cmmunity t advcate fr additinal husing in the cmmunity thrugh written cmmitment r ther means t establish buy-in. Actin: Develp a marketing strategy t infrm ptential develpers f ptential incentives, cmmunity buy-in, available land, and the need fr additinal husing. Actin: Invite develpers t visit the cmmunity and discuss what they need in rder t prfitably invest in new husing. Actin: Create a culture that welcmes and incentivizes investment in the regin by husing develpers thrugh lng-range land-use planning and marketing f the specific needs f the cmmunity (incme, ages, etc.). Actin: Develp a lng-range capital imprvements plan that reflects investment needed fr new husing, such as sewer and water capacity, timing f investments, etc. Actin: Establish acquisitin plan t acquire parcels fr future husing develpment and infill husing. Develpers stated that cmmunity wned land is an incentive t future develpment. 16 Cuba City Husing and Wrkfrce Study

3. Address issues assciated with the demgraphic changes that impact the husing market and husing preferences. Existing Cnditin: Based n demgraphic data, the demand frecast fr the cmmunity des nt identify the need fr additinal hmes. Yet, nn-demgraphic factrs such as grwth f adjacent cmmunities and active and successful ecnmic develpment prgrams demnstrate that demand exists fr husing in the cmmunity. Actin: Identify buildable lts and develp a database. Develpers need t knw where they can build. Identificatin f these areas is a step that reginal agencies can assist with. The initial step is identifying the parcels mst suitable t cnstructin. GIS sftware can assist in identifying parcels with lw-slpe, utside f envirnmental regulatins, and within prximity t existing rad infrastructure. Fllwing the identificatin f parcels, additinal discussin can ccur regarding subjective elements f develpment. Actin: Create a database f develpers that the cmmunity has wrked with in the past r that have shwn interest in wrking with the cmmunity. Actin: Implement husing marketing strategy by targeting identified develpers with key infrmatin such as available land, incentives, cmmunity and lcal business buy-in. Invite develpers t yur cmmunity. Actin: Review the cmmunity s future capital imprvements investments with the develper t determine what future investments may be mved frward t leverage investments and reduce gap financing. Actin: Identify in-fill areas r future land near cmmercial dwntwns and schls fr new husing. Incrprate this in a future land use map and update the cmprehensive plan accrdingly. Existing Cnditin: Based n stakehlder cmments and data, new husing units are needed that are affrdable fr the grwing ppulatin f fixed-incme senirs. Data demnstrates that the sale price f husing is ften greater than the median hme values in the cmmunity, and the majrity f hme values in the cmmunity are in the range f affrdable husing, between $75,000 and $120,000. In shrt, this means that much f the affrdable husing is ccupied. Furthermre, data suggests that residents f wner-ccupied husing are mre likely t have a median incme less than that f renter ccupied husehlds. Creating husing fr the grwing senir ppulatin is likely t pen up existing affrdable hmes. Actin: Wrk with develpers t determine ptins available fr senir husing, including number f units, unit cst, and ther financial incentives. Actin: Gather input frm existing hmewners thrugh a targeted survey t identify future husing preferences f lder hmewners. 4. Address issues f husing csts and affrdability. Existing Cnditin: New husing units are needed t accmmdate the incmes f existing and prjected ccupatins. Affrdable husing is needed t attract future business develpment. Stakehlder identified affrdable single-family husing between $75,000 and $120,000. A balance f hmes fr senirs and wrkfrce is desired, with mst t be clser t amenities with smaller grunds t care fr, and sme larger hmes fr thse with larger incmes. Existing Cnditin: Data suggests that existing wner-ccupied husehlds are mre likely t have median incmes lwer than that f existing renter ccupied husing. This data alng with an aging ppulatin suggests demand fr additinal multi-family renter ccupied husing units. Actin: Meeting with lcal businesses t determine the incmes f wrkfrce in rder t identify husing csts apprpriate t the existing and future wrkfrce. 17 Cuba City Husing and Wrkfrce Study

Actin: Municipalities shuld review and revise the zning rdinance as needed t allw fr mixed-use cmmercial and residential units in r near the dwntwn t allw fr smaller, mre affrdable, mixedincme, and inter-generatinal husing pprtunities. Actin: Develp a catalg f husing types and csts with input frm develpers. Determine csts that culd be brne r ff-set by municipality t buy-dwn cst f develpment and incentivize investment by cmmunities. Actin: Meet with develpers and infrm them f this need, and determine what gap financing amunts are needed in rder t make a prject wrk in the cmmunity. Actin: Establish a desired purchase price fr new husing and rental rates. Wrk with develpers t d the math t determine what incentives are needed t reach thse gals. Actin: Develp a set f tls and database f state and federal prgrams designed t meet this gap. Actin: Keep existing TID pen fr additinal year t raise funds fr affrdable husing prgrams r t assist in funding csts fr existing husing prgrams. 5. Wrk t address issues assciated with the purchase f existing hmes. Existing Cnditin: Existing husing stck is ld, and affrdable husing is in need f repairs. Maintenance r csts t update are ften a barrier t first-time hme wners since it increases the brrwing amunt, and therefre dwn payments. Actin: With input frm realtrs, develp a set f cnditins that appear t be the largest investments needed in ld husing, and develp assciated csts with input frm develpers and builders. This will frm a database that infrms investments needed in existing husing. Actin: Develp lcal funding t ff-set r cver csts needed t make existing husing livable fr yung families r senirs. This culd include lw r n-interest lans, dwn-payment assistance grants cnditinal upn hme wnership and/r imprvements, partnerships with industry needed t incentivize wrkfrce, etc. The existing TIF district shuld be kept pen fr an additinal year t fund affrdable husing prgrams. 18 Cuba City Husing and Wrkfrce Study