Wisconsin has begun distributing more than one hundred million dollars from a historic state housing investment signed into law by Governor Tony Evers in 2023. The funding flows through three new loan programs administered by the Wisconsin Housing and Economic Development Authority, or WHEDA, and is part of a broader five hundred twenty-five million dollar biennial housing package, the largest in state history.

The Housing Package

The biennial budget enacted in 2023 directed unprecedented state dollars toward housing development and preservation. The package created three core loan programs, each targeting a distinct piece of the state's housing challenge.

The Vacancy-to-Vitality program received one hundred million dollars to convert vacant commercial buildings into housing. The program recognizes that Main Street buildings across Wisconsin's small cities often sit empty or underused, while those same cities face housing shortages that limit workforce recruitment.
The Restore Main Street program received one hundred million dollars to rehabilitate upper-floor housing in mixed-use buildings. Older downtowns across the state have second and third floors that once housed families and have sat empty for decades, and this program funds the work needed to bring them back online as apartments.
The Infrastructure Access loan program received two hundred seventy-five million dollars to fund water, sewer, road, and other infrastructure investments that make new housing feasible. Many Wisconsin communities want to expand housing but lack the utility capacity or street network to support new construction.

How the Programs Work

WHEDA administers the loan programs with applications accepted semi-annually. Developers, municipalities, and nonprofits can apply for specific projects, describing the housing units expected to result and the financial gap the WHEDA loan would fill. Program staff review applications, underwrite the projects, and make awards to those that demonstrate the strongest combination of housing impact and financial feasibility.

Loans typically carry below-market interest rates and terms aligned with the long-term economics of the projects. Repaid funds recycle back into the programs, allowing the state's initial investment to fund multiple rounds of projects over time.

Who Benefits

The programs target a wide range of housing needs. Workforce housing for teachers, health care workers, police officers, and other middle-income earners forms a significant share of eligible projects. Senior housing, both independent and assisted, also features prominently in early awards. Some projects focus on affordable rental housing for lower-income households, while others serve market-rate buyers in communities where even market-rate supply has lagged demand.

Developments in rural and small-town Wisconsin have received a meaningful share of awards, reflecting the program's explicit goal of extending housing investment beyond Milwaukee and Madison. Smaller cities such as Green Bay, Eau Claire, La Crosse, Wausau, and others have benefited, as have projects in village and township settings where a single small development can meaningfully expand local housing supply.

The Case for State Investment

Wisconsin's housing shortage has become a drag on economic development across the state. Employers in smaller markets regularly report difficulty attracting workers who cannot find available housing at affordable prices. Existing residents struggle with rent burdens and limited opportunities to become homeowners. A shortage of housing for older adults keeps seniors in homes that no longer suit their needs, while younger families cannot find entry-level houses to move into.

State investment at the scale of the 2023 package aims to move the needle on all three problems simultaneously. Vacancy-to-Vitality and Restore Main Street aim to add units through adaptive reuse, which tends to be less expensive per unit than ground-up construction. Infrastructure Access enables the new construction that still needs to happen, particularly in growing communities where water and sewer limits have constrained development.

Complementary Efforts

The three new programs layer on top of WHEDA's existing toolkit. The agency continues to administer Low-Income Housing Tax Credits, the single largest source of federal subsidy for affordable rental housing. WHEDA also operates first-time homebuyer mortgage programs, multifamily lending, and rural housing initiatives.

At the federal level, USDA Rural Development offers loans and grants for rural Wisconsin residents, and HUD Community Development Block Grant funds flow through the state to smaller cities and counties. Local tools including tax increment financing and locally funded down payment assistance programs round out the financing landscape.

Since 2019, Wisconsin has built more than twenty-six thousand total housing units, including over seventeen thousand affordable units. The 2023 package is expected to accelerate that pace in the years ahead.

What It Means for Residents

Wisconsin residents who are renters or prospective first-time buyers may see more options in the coming years as program-funded projects come online. Workforce housing developments often open with lease-up periods that favor local workers and long-term residents. Affordable rental units funded in part with program dollars carry income limits and come with waitlists that can be worth joining early.

Homeowners, particularly older owners considering a move to smaller or more accessible units, may find better options in the senior-focused projects funded under the program. Many seniors in Wisconsin would prefer to downsize without leaving their communities, and the new investment is designed in part to create those local options.

How to Get Involved

Residents interested in specific projects should watch for announcements from their local city or county housing authority, which often partners with developers on WHEDA-funded awards. Development plans typically include public hearings where community members can weigh in on design, parking, and other details. Once projects are completed, leasing offices accept applications from qualifying households.

Developers and municipalities interested in applying to the programs can work directly with WHEDA staff, who hold application cycles, pre-application workshops, and one-on-one consultations to help potential applicants structure competitive proposals. Nonprofit developers across the state have received technical assistance in developing applications, reflecting the state's interest in building the capacity of mission-driven builders alongside for-profit firms.

Wisconsin Distributes $100M From Historic Housing Investment