Outagamie Co. remodelers, developers can apply for ARPA funds on affordable housing projects. Here's how

Sophia Voight, Appleton Post-Crescent
Updated ·3 min read

APPLETON - In the midst of an affordable housing shortage, Outagamie County is dispersing some of its remaining federal COVID-19 relief funds to invest in the construction of new housing developments.

Last year, the county allocated $3.5 million of its $36.5 million in American Rescue Plan Act funding to go toward affordable housing development.

This will be the second round of affordable housing grants paid through ARPA funds that the county will award developers.

The county already awarded $1 million to assist in the development of the 48-unit Rise Apartments in downtown Appleton and an additional $1 million to Habitat for Humanity to build 10 single-family homes. Leaving $1.5 million for the second round of the grant.

"We're hoping this $3.5 million goes a long way in helping fill the affordable housing gap in the area," County Executive Tom Nelson told The Post-Crescent.

What is the Affordable Housing Production Grant?

The grant funding will support the construction or rehabilitation of affordable housing developments meant to serve low- or moderate-income households for a period of at least 20 years.

Applicants who rehabilitate affordable housing are eligible for between $250,000 and $500,000, while developers constructing new housing could access between $500,000 and $1.5 million.

Eligible projects must include at least five units and be located in the county.

Applications for the funding are open until Jan. 12.

What is the county's affordable housing need?

The Department of Housing and Urban Development recommends rent should not exceed 30% of a household's monthly income.

Households which pay more than that for rent or a mortgage are considered "cost burdened" and generally struggle to make ends meet and can end up having to choose between paying rent and covering other living costs.

A housing study by the county found the region needs around 1,000 to 2,000 new affordable housing units per year to keep up with growing demand.

Appleton's 2020-2024 Consolidated Plan on housing found in 2019 there were 3,525 Appleton area households making 30% or less than the area's median income and would need affordable rental units.

What else has the county spent its COVID-19 relief funds on?

In total, Outagamie County received $36.5 million in ARPA funds that it has allocated toward things such as expanded internet access, nonprofit grants, a new 911 Communication Center, information technology projects and county COVID-19 expenses to be used by the end of 2024.

Last year, the county allocated its remaining ARPA balance of $15 million toward addressing major issues facing the county, which included:

  • $3,500,000 for affordable housing;

  • $2,750,000 for child care and early childhood development;

  • $2,750,000 for behavioral and mental health services;

  • $2,500,000 in expanding broadband;

  • $2,400,049 for county projects and administration services; and

  • $1,000,000 for economic, tourism and workforce development.

Majority of allocated funding in those areas has been put into grants for businesses and nonprofits working in those industries to help lessen the need of those services.

This summer, the county opened a $1 million Workforce Development Grant to finance workforce training; a $2 million Family Resource Center Grant to help start up a child care center; and a $750,000 Child Care Shared Services Grant which child care providers would use to outsource basic business operations to free up time for its workers.

Sophia Voight is a local government and political reporter with The Post-Crescent. She can be reached with feedback and tips at svoight@postcrescent.com.

This article originally appeared on Appleton Post-Crescent: Outagamie County opens affordable housing grant funded through ARPA