FOND DU LAC – More housing developments are on the horizon for Fond du Lac.
The Fond du Lac City Council meeting June 10 included a presentation on development opportunities to continue addressing the housing shortage. City Manager Joe Moore listed two areas for single-family and multifamily communities that would require city investment to come to fruition.
The city previously invested in the infrastructure for two subdivisions — Hidden Valley and Eastern Ridge Phase 2 — along County K on the city’s east side.
Here’s what to know.
What is the city’s need for housing?
Much of the city’s 2024 Housing Study & Action Plan is still relevant to the current state of housing in Fond du Lac. The major findings of the study included a low vacancy rate in the city’s apartments and homes, driving up prices beyond what many residents can afford.
Moore noted that for apartments, the national benchmark for a balanced rental market is a 5% vacancy rate, but Fond du Lac’s vacancy rate has ranged from 1.2 to 3.4% since 2018. A rate that low means tenants aren’t able to move, and rental prices increase to remain profitable for landlords.
The median sale price of homes increased by $60,000 between 2020 and 2023 because of the shortage of homes for sale.
The study calculated a need for 700 new houses or condos by 2029, as well as a rental unit demand of more than 850 units in the city.
Police Memorial Drive has space for apartment units
The first development opportunity sits on Police Memorial Drive, near Compeer Financial and SSM Health at Home.
The project would start with four garden-style low-rise apartment buildings with 48 to 64 market-rate units. Phase 2 and further phases would eventually result in up to 172 units in a mix of garden-style and row house-style buildings.
Phase 1 would get city support of $1.1 million, which comes out to $275,000 per building.
Pelton Development is listed on the June 10 meeting agenda, which previously partnered with the Carver Flats apartment complex in Waupun.
Hunters Grove would hold a variety of single-family homes
Designated land along Ducharme Parkway east of U.S. 151 has room for about 100 lots, but Phase 1 of Hunters Grove development would be 15 to 20 single-family homes. Builds would start from the east side of the development and range in size and price to accommodate a variety of buyers.
City support would be $1 million for infrastructure in Phase 1, including streets, storm sewer, water and sanitary sewer. Support would continue in other phases as demand arises.
Moore said the land had long been planned for a neighborhood, and would finally come to fruition with a partnership with the private sector. Developer Valido Homes would start building as soon as infrastructure allows, stagger-starting up to five speculative homes right away to help market what they’re able to offer.
How would these projects be funded?
Fond du Lac City Director of Administration and Chief Financial Officer Tricia Davi said at the meeting funding could come from a few sources.
The 2026 Capital Improvement Plan already accounted for $1.1 million for residential infill development, and the city also has a share of closed Tax Incremental District (TID) funds kept in a Capital Projects Fund.
Affordable housing funds have been accumulating since 2021: 25% can be used to improve the housing stock, and 75% must be used to support housing development where the rent or mortgage cannot exceed 30% of the household’s gross monthly income, Davi said.
Fond du Lac City Council will need to approve developer’s agreements and the public investment to move the projects forward.
Daphne Lemke is the Streetwise reporter for the Fond du Lac Reporter. Contact her at dlemke@usatodayco.com.
This article originally appeared on Fond du Lac Reporter: Where Fond du Lac could add housing next
Reporting by Daphne Lemke, Fond du Lac Reporter / Fond du Lac Reporter
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By Daphne Lemke, Fond du Lac Reporter | USA TODAY Network
