Oneida Heights may see newly renovated units by 2025 as housing authority plans redevelopment
APPLETON - Residents of the public housing complex Oneida Heights may need to be temporarily relocated as the Appleton Housing Authority announces a planned renovation of the property.
Oneida Heights, 525 N. Oneida St. in Appleton, is owned by the Appleton Housing Authority (AHA) and mostly occupied by older adults and elderly. It is centrally located close to the city's downtown area with quick access to the Avenue Mall, county historical museum, the Fox Cities Performing Arts Center, Lawrence University and more.
Each resident's rent is based on their annual income and priority is given to elderly and/or disabled applicants.
However, AHA says housing authorities across the country are at risk of losing funding for maintenance, major repairs and programming.
Debra Dillenberg, AHA's executive director, said the organization is looking into building more units, but the only viable means to do this is to utilize a tax credit program. According to Dillenberg, AHA hasn't received funding for new affordable units from The United States Department of Housing and Urban Development (HUD) since the early 90's.
"HUD does not give you funding to build any longer, they want you out of the public housing business," Dillenberg said.
In an effort to prevent further loss of housing stock caused by disrepair, AHA turned to the Rental Assistance Demonstration (RAD) program to preserve its affordable housing.
RAD gives housing authorities the opportunity to convert their funding source from public housing to the section 8 program — allowing them to leverage public and private debt and equity in order to reinvest in the public housing stock.
As part of RAD, units move to a Section 8 platform with a long-term contract that is required by law to be renewed perpetually. This long term contact ensures that the properties are exempt from federal funding decisions that are currently impacting public housing.
Under Section 8, properties have access to the financing tools used by the rest of the affordable housing industry. The long-term contract also helps ensure that units remain permanently affordable to lower income families.
Through RAD, AHA hopes to fully rehabilitate the Oneida Heights property, safeguard long-term housing affordability, continue providing rental assistance, guarantee tenants are never paying more than 30% of their adjusted income and more.
"The funding for it will no longer come from public housing," Dillenberg said. "We'll have actually a housing assistance payment contract, and that's how we'll get our money instead of an operating subsidy."
What Oneida Heights residents can expect during the redevelopment
AHA submitted its RAD application on June 9, but the entirety of the project isn't expected to be complete until 2025.
"We're at the very start, if that progress," said Dillenberg. "The very first steps is meeting with the residents and letting them know that there could be some relocation in their future."
Dillenberg said that if relocation does happen, AHA will take care of any costs residents incur as part of their move, to make the transition as smooth as possible.
A relocation team will have individual meetings with tenants to asses their personal needs when moving and a professional moving company and packing materials will be provided free of charge.
Tenants will be relocated to other units within the Oneida Heights building. As construction is completed, tenants will be allowed to move into the renovated units, however it is likely it will not be the same as their previous unit.
The current Oneida Heights building has 159 units, but one goal is to reduce the complex's footprint to make room for other improvements.
"We don't have the capacity to add more parking, we're kind of landlocked on that block, with the railroad, you know, crossing there," said Dillenberg. "We're looking to reduce it from 159 units down to maybe 70."
Dillenberg said reducing the number of units can provide tenants with more space in their apartments for easier accessibility with their mobility equipment and in-unit washers and dryers.
Additional renovations include new cabinets, flooring, appliances, bathtub and shower, toilets, painting, LED lighting and more.
Appleton Housing Authority partners with Bear Development for the project
There are three possible options for the redevelopment of Oneida Heights; a new building on the same site, a second building alongside the existing one, both being renovated, or a new building on a new site.
Bear Development, who will work with AHA on the project, has worked on 43 projects with a mix of housing programs including low income housing tax credit, RAD, Section 3, Housing and Urban Development compliances and more.
Additionally, it led the development of 14 projects converting public units to Section 8 under the RAD program, totaling over 1,000 converted units.
The company's been part of the acquisition and development of residential, multifamily, hospitality, retail, office and industrial projects since 1986.
Bear Development now owns and manages real estate in 14 different states, including Wisconsin.
Construction won't begin until 2025
As of now, AHA and Bear are reviewing existing architectural plans and discussing initial site layout plans and financing options for the redevelopment.
The companies will review environmental and capital needs through third party reports to assist in the redevelopment.
AHA plans to submit its financing plan to HUD in July 2024 and expects HUD to approve and close the transaction by November 2024.
If approved, construction will begin in February, 2025, and be complete sometime later that year.
More: Kaukauna takes no action in melted siding complaint; insurance company won't change offer
Reach Jelissa Burns at 920-226-4241 or jburns1@gannett.com. Follow her on Twitter at @burns_jelissa or on Instagram at burns_jelissa.
This article originally appeared on Appleton Post-Crescent: Appleton Housing Authority plans redevelopment of Oneida Heights
