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2026 Shows Signs of Renewed Optimism to the Housing Market: Here’s What Real Estate Professionals Should Know

Sponsored content submitted by QRL Financial Services, a WBA Associate Member.

After several years of high mortgage rates and tight housing inventory, the real estate landscape is beginning to show signs of potential progress. While it will take time to restore broad affordability, market indicators point to 2026 as a year that could bring more balance, opportunity, and predictability for buyers, sellers, and investors alike.

Positive Market Trends Taking Hold

A range of promising developments are creating favorable conditions for borrowers and the professionals who serve them:

  • Mortgage rates are trending downward. As rates gradually decline from recent highs, homeownership may become more accessible for a wider range of clients.
  • Inventory is increasing. More homes are coming onto the market, giving buyers greater choice—and allowing agents and lenders to better match clients with the right fit.
  • Buyer activity is on the upswing. Renewed confidence is drawing more people back into the market, fueling opportunities for real estate transactions of all types.

What Does This Mean for Your Business?

These positive shifts translate to more options, more stability, and more opportunities for your borrowers to achieve their real estate goals—whether they’re searching for a primary residence, a second home, or a promising investment. It’s also an ideal time for mortgage and real estate professionals to re-engage with clients who may have put their plans on hold during the past few challenging years.

At QRL Financial Services, we’re here to help you and your team navigate these evolving conditions and explore new opportunities. We offer deep market knowledge, proactive support, and streamlined lending solutions designed to help you better serve your clients and grow your business.

Advertisement for credit. Restrictions may apply. Not all applicants will qualify. Terms and conditions apply. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. Equal Housing Lender, QRL, a division of First Federal Bank, NMLS: 208902, 4705 W US Highway 90, Lake City, FL32055.

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2026 Housing Market Outlook: Why More Moves May Be Ahead

Sponsored content submitted by QRL Financial Services, a WBA Associate Member.

The market may have felt stuck, but 2026 is set to regain momentum. Closing out Q4, we’re seeing signs of increased mobility ahead which could open more doors for buyers, sellers, and the institutions supporting them. Partner with QRL Financial Services to finish the year strong and be January-ready with integrated, cost-effective mortgage solutions customized to your needs.

More Homes Will Sell

Pent-up demand is real. Life events such as new jobs, growing families, downsizing, and lifestyle changes which don’t pause for market cycles. As conditions gradually improve, more of these delayed moves are expected to happen in 2026, lifting sales from recent lows.

Mortgage Rates Could Continue to Ease

The number one thing buyers have been waiting for is lower mortgage rates. After peaking near 7% earlier this year, rates have started to ease. Many forecasts suggest that trend could continue into 2026, though not in a straight line. Expect modest improvement with occasional volatility as new economic data rolls in. Even small dips can meaningfully improve affordability and monthly payments.

Home Price Growth Will Be Moderate

On a national scale, prices are expected to rise. As rates ease and more buyers return, demand should keep some upward pressure on prices and help prevent broad declines. While a few markets are seeing slight pullbacks, a major nationwide drop isn’t in the forecast, and most areas remained up substantially versus five years ago. Local trends will vary based on inventory.

Bottom Line

After a quieter stretch, 2026 is shaping up to bring more movement and more opportunity. With sales projected to rise, mortgage rates trending lower, and price growth at a steadier pace, the stage is set for a healthier, more active market. Use Q4 to prepare, so you start the new year with momentum. Partner with QRL Financial Services for fully integrated, cost-effective mortgage solutions, a dedicated coordinator, and nationwide execution, so you can scale confidently, elevate the borrower experience, and capture next year’s opportunity now.

Advertisement for credit. Restrictions may apply. Not all applicants will qualify. Terms and conditions apply. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. Equal Housing Lender. First Federal Bank NMLS: 408902, 4705 W US Highway 90, Lake City, FL 32055

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2025 Housing Market Insights: What Financial Institutions Need to Know

Sponsored content submitted by QRL Financial Services, a WBA Associate Member.

The U.S. housing market is experiencing a significant shift that directly impacts mortgage lenders, banks, and financial institutions. Rising inventory levels, evolving buyer behavior, and increasing expired listings are reshaping how institutions approach mortgage origination, pricing strategy, and customer engagement.

At QRL Financial Services, we’re closely monitoring these trends to help our partners across the financial industry navigate the current landscape with clarity and confidence.

📊 Inventory Growth Signals a Market Shift

For the first time since late 2019, active listings have surpassed one million homes nationwide. After several years of historically low supply, the residential market is showing meaningful signs of rebalancing:

– Inventory is growing year-over-year across most regions.
– The South and West are now above pre-pandemic inventory levels, while the Midwest and Northeast remain below.

This influx of supply creates expanded opportunities for lenders but also introduces new challenges for pricing models, underwriting, and borrower expectations.

🏦 Impacts on Lending: Affordability Meets Supply

While elevated mortgage rates continue to weigh on demand, the increase in supply introduces a silver lining—a more balanced market with greater negotiating power for buyers.

However, affordability remains a persistent headwind:

– The long-standing housing supply deficit persists despite recent inventory growth.
– At the current rate of absorption, it would take over seven years to fully close the housing gap (Realtor.com estimate).

For financial institutions, this dynamic means borrowers remain price-sensitive, rate-conscious, and increasingly focused on flexible loan products that help overcome affordability barriers.

💰 Seller Psychology & Pricing Disconnects

A widening gap between seller expectations and buyer realities is impacting transaction velocity:

– 80% of sellers believe they’ll receive their asking price or more.
– Yet, 40% of homes sold for less than the asking price.
– Roughly one-third of sellers had to reduce their asking price.

This growing disconnect has operational implications for lenders and servicers, including longer origination cycles, increased appraisal challenges, and the need for refined borrower education.

🔍 The Expired Listings Surge: A Market Stress Indicator

One of the clearest signals of today’s transitional market is the surge in expired listings:

– Expired listings are up 17.6% year-over-year.
– Projections suggest this could approach 20% growth by year-end.
– Homes sitting longer and failing to sell are triggering higher cancellation rates.

For lenders, this dynamic signals potential volatility in pipeline management, with loans falling out mid-process or requiring extended rate lock management.

🔑 Key Takeaways for Financial Institutions

– Prepare for Extended Cycles: Rising days on market mean longer timelines from application to closing, requiring adjustments to rate lock policies and pipeline forecasting.
– Recalibrate Borrower Expectations: With sellers still pricing on outdated comps, borrowers need coaching on realistic purchase prices, concessions, and negotiation strategies.
– Focus on Solution-Oriented Lending: Creative financing solutions, adjustable-rate products, and down payment assistance programs may be more critical than ever in combating affordability concerns.
– Revisit Risk Models: The uptick in expired listings, combined with broader inventory shifts, calls for a reassessment of pricing risk, valuation models, and market exposure.

🤝 QRL Financial Services: Your Secondary Market Partner

At QRL Financial Services, we specialize in providing correspondent banks with the tools, insights, and liquidity solutions needed to thrive in complex mortgage markets. Our focus remains on helping partners adapt, scale, and serve their customers effectively—no matter the market cycle.

Let’s Connect. If your institution is looking to navigate the challenges and opportunities of today’s market, QRL Financial Services is ready to collaborate.

Advertisement for credit. Restrictions may apply. Not all applicants will qualify. Terms and conditions apply. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. Equal Housing Lender. First Federal Bank NMLS: 408902, 4705 W US Highway 90, Lake City, FL 32055

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Wisconsin Bankers Association Announces $60,000 in Housing and Economic Development Grants

The Wisconsin Bankers Association (WBA) is pleased to announce that six grants of $10,000 each have been awarded to support housing and housing literacy, economic development/community investment, and financial or cyber literacy in Wisconsin.

“Affordable housing and financial literacy are acute needs for individuals and families in our state and are essential for economic stability,” said Rose Oswald Poels, WBA president and CEO. “We are proud to once again offer this grant opportunity, which showcases the partnership of Wisconsin banks and non-profit organizations to strengthen programming that empowers Wisconsinites to become financially capable, promotes homeownership, and builds wealth that can be passed on to future generations.”

The selected projects include:

  • Bank of Prairie du Sac
    • Bank of Prairie du Sac plans to work in partnership with 6:8, Inc. to help support the 6:8 Circles program which works to both empower highly motivated low-income participants to permanently move out of poverty and into stability and increase the “poverty IQ” of leaders in business, education, health, philanthropy, volunteerism, public service, and other major sectors of the community in order to motivate strategic collective action to resolve systemic barriers to self-sufficiency.
  • Bay Bank, Green Bay, Wis.
    • Bay Bank is a stakeholder of a new effort, the Wisconsin Native Homeownership Coalition, which consists of different professionals from Wisconsin’s tribal communities that are engaged in housing related activities. The coalition brings together Bay Bank, two Native CDFI lenders, tribal housing authority executives, and an affordable housing developer to develop tools, resources, and practices that will increase the number of housing units for Native Americans. WHEDA’s tribal liaison is also participating in the Coalition efforts. The grant funds will be used towards the cost of developing a written strategic plan for the Wisconsin Coalition.
  • Horicon Bank
    • Horicon Bank plans to develop a down payment assistance program to make homeownership more accessible to families. Through a partnership with Acts Housing, Horicon Bank will ensure that homebuyers receive the financial guidance they need throughout the homebuying process.
  • PremierBank, Fort Atkinson, Wis.
    • PremierBank plans to help expand financial literacy and cybersecurity fraud prevention education materials in Spanish throughout Janesville and surrounding communities in collaboration with Adelante Janesville, a program of Forward Janesville that was formed two years ago to uncover ways to better serve the Latino community, specifically by supporting Latino business owners and entrepreneurs in the Janesville area.
  • The Bank of New Glarus
    • The Bank of New Glarus has collaborated with St Vincent de Paul of Green County located in Monroe to develop and distribute a microloan program for emergency financial assistance to low-income families for housing related expenses, specifically overdue rent or utilities. The program will also provide financial literacy counseling through the University of Wisconsin Extension. The grant funds will support the operations of the microloan program, providing financial relief and empowerment to community members in need.
  • Woodford State Bank, Monroe, Wis.
    • Woodford State Bank plans to implement a community-based program to address financial literacy, help prevent fraud, and to better understand the home-buying process thereby empowering individuals to achieve financial stability and homeownership. Specific focus being placed on the Lafayette County in southwest, Wisconsin.
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First Business Bank Invests Additional $1 Million in Dane Workforce Housing Fund

First Business Bank announces its second $1 million investment in the Dane Workforce Housing Fund. This contribution builds on the bank’s first $1 million pledge in 2020 and reinforces its commitment to addressing affordable housing needs in Dane County.

The fastest-growing county in Wisconsin, Dane County faces a critical affordable housing crisis. According to the Dane County Regional Housing Strategy, the county needs to add 7,000 new housing units annually to meet demand. Additionally, one in four Dane County households are cost-burdened, spending more than 30% of their income on housing costs.

“We’ve always believed in rolling up our sleeves and helping our communities,” said Dave Seiler, President & COO of First Business Bank’s parent company, First Business Financial Services, Inc. A member of the Dane Workforce Housing Fund’s Technical Advisory Committee, Seiler added, “First Business Bank’s second $1 million investment reflects our belief in the fund’s ability to address critical housing needs in Dane County. The progress made so far is impressive. Looking ahead, we’re excited about the potential of this fund to transform our housing mix to make it more accessible to build a business and to raise a family here.”

The Dane Workforce Housing Fund, managing by Madison Development Corporation, was founded in 2020 to create affordable housing for the local workforce. The fund raised $11.8 million from 14 local businesses and has already created 747 new housing units, surpassing its initial target of 500 units.

“We are proud to support the Dane Workforce Housing Fund and its mission to provide stable housing options for our community,” said Jim Hartlieb, President & CEO of First Business Bank. “This investment aligns with our commitment to develop economic growth and well-being in our communities.”

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WHEDA Launches New Financing Tools

Partners with developers, municipalities, and employers to increase housing opportunities

By Raechelle Belli, WHEDA Public Affairs Program Manager and Samantha R. Linden, WHEDA Legislative Liaison

The Wisconsin Housing and Economic Development Authority (WHEDA) is dedicated to helping our workforce, families, and seniors find a home. Our legislative priority was creating and advocating for a housing package to help Wisconsin thrive by expanding affordable housing choices.

In 2023, WHEDA’s Legislative Program team facilitated unprecedented advocacy work on a package of proposals called the Bipartisan Workforce Housing Package. Democrats and Republicans united to address Wisconsin’s affordable housing crisis. Governor Tony Evers signed the $525 million package into law in June 2023 to help expand access to safe, affordable housing.

WHEDA administers the four loan programs created by the new legislation. This funding will significantly impact the construction and rehabilitation of affordable housing for rent and ownership in Wisconsin. Public and private partnerships between municipalities and developers will leverage both groups’ expertise and financial resources, as was the intent of the legislation.

The four programs created by this legislation help fund infrastructure investments, housing units above main street buildings, converting vacant commercial buildings into housing, and rehabilitating and repairing older housing stock.

  Infrastructure Access Loan ($275 million) – allows a residential housing developer to apply for a loan to cover the costs of installing, replacing, upgrading, or improving public infrastructure related to workforce housing or senior housing.

  Restore Main Street Loan ($100 million): This loan allows an owner of rental housing to apply for a loan to cover the costs of improving housing located on the second or third floors of an existing building with commercial space on the ground level.

  Vacancy-to-Vitality Loan ($100 million) – allows a developer to apply for a loan to help cover the cost of converting a vacant commercial building to workforce housing or senior housing.

  Home Repair and Rehab Loan (Home R&R Loan) ($50 million) – provides up to $50,000 loans to homeowners who own a house at least 40 years old to repair and/or rehabilitate their home.

To learn more about these new WHEDA loan programs, visit wheda.com.

Two programs, Restore Main Street and Vacancy-To-Vitality, soft-launched last fall. The first $3 million in awards, announced on January 31, 2024, supported the creation of over 300 units in three developments in Dane and Waukesha counties. All three awards were for the Vacancy-to-Vitality program, which helps developers cover the cost of converting a vacant commercial building to housing.

The Infrastructure Access Program opened in March 2024, and applications closed on April 30. WHEDA also opened Restore Main Street and Vacancy-to-Vitality for a second round of applications. In the summer of 2024, WHEDA will announce funding awards for all three loan programs.

WHEDA is currently developing the Home R&R program, which enables property owners to access up to $50,000 to improve Wisconsin’s aging single-family, owner-occupied housing stock. Repairs and rehabilitation actions could include removing lead paint, asbestos, mold, or other environmental contamination or repairing or replacing flooring, interior walls, ceilings, or plumbing. This new loan will be available in the fall.

Advocating for housing requires the support of many. WHEDA joined many advocates to create and introduce the Bipartisan Housing Package and thanks its partners for their tremendous support of this legislation to help increase housing inventory and lower housing costs.

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WBA Announces $50,000 in Housing and Economic Development Grants

The Wisconsin Bankers Association (WBA) is pleased to announce that five grants of $10,000 each have been awarded to support housing and housing literacy, economic development/community investment, and financial or cyber literacy in Wisconsin.  

“Affordable housing and housing literacy are acute needs for individuals and families in our state and are critical drivers for our economy’s workforce needs,” said Rose Oswald Poels, WBA president and CEO. “We are proud to offer this inaugural grant opportunity, which showcases the partnership of Wisconsin banks and non-profit organizations to strengthen programming that empowers Wisconsinites to become financially capable, promotes homeownership, and builds wealth that can be passed on to future generations.” 

The selected projects include: 

  • Columbia Savings and Loan Association, Milwaukee, Wis. 
    • Columbia Savings and Loan Association plans to present homeownership workshops and related financial literacy sessions to individuals in their market. In addition, qualified low- and moderate-income borrowers may receive downpayment assistance to substitute or supplement FHLBank Chicago’s Downpayment Plus Program and/or City of Milwaukee grant funding. 
  • Community First Bank, Boscobel, Wis. 
    • Community First Bank plans to develop/distribute educational/promotional resources to benefit individuals across its footprint in Southwest and South Central Wisconsin with a focus on current and prospective homeowners in rural areas. Such resources could include video content on topics such as credit repair strategies and steps to homeownership. The bank may also partner with others involved in the home-buying process to offer educational events to help consumers more fully understand the housing market, housing availability, and the steps required to purchase and maintain a home. 
  • Peoples State Bank, Prairie du Chien, Wis. 
    • Peoples State Bank plans to provide a three-part community education series and one-to-one counseling sessions in partnership with Couleecap, Inc, a community action and United States Department of Housing and Urban Development (HUD) counseling agency.   
  • Premier Community Bank, Marion, Wis. 
    • Premier Community Bank plans to host financial education events in English and Spanish — including presentations, videos, and supplemental materials — focusing on housing counseling/homeownership opportunities, fraud prevention, and cyber literacy. This outreach is geared toward elderly, financially challenged, and low- to moderate-income community members. 
  • Waldo State Bank 
    • Waldo State Bank will support Consumer Credit Counseling Service (CCCS) — a non-profit organization with HUD-accredited and NFCC-certified (National Foundation for Credit Counseling) counselors — in providing the Open the Door Homeownership (ODHO) program for new homebuyers. The grant funding will drive awareness of the ODHO homebuyer education classes through radio, print media, etc. to underserved and marginalized populations, provide a manual to participants (available in English, Hmong, and Spanish), and offer one-to-one counseling required for most downpayment assistance programs.
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Cinnaire Closes $175 Million Equity Fund to Provide Affordable Housing in Midwest

Rendering of CC Lane Apartments in Oregon, Wisconsin

Cinnaire  announced on June 6, 2024 the closing of the Cinnaire Fund for Housing Partnership 41, a $175.4 million multi-investor Low-Income Housing Tax Credit (Housing Credit) fund. The fund comprises 14 investors and will support the creation or preservation of 1,228 affordable multi-family homes across 22 properties in Michigan, Illinois, Indiana and Wisconsin. Fund 41 is the first of three multi-investor funds planned by Cinnaire this year. To date, Cinnaire has closed more than $5 billion in tax credit funds supporting affordable housing in ten states.

“We continue to see very strong interest from long-time and new investors in our Housing Credit funds,” said Matt Hodges, Senior Vice President Equity Funding at Cinnaire. “We’re appreciate their trust, and we are deploying this capital into impactful developments – several supporting seniors and special needs population – that will deliver much needed affordable homes in disinvested communities.”

Cinnaire raised $417 million in equity and closed 4 funds in 2023 leveraging $657 million in total development costs and supporting more than 2900 affordable homes in ten states.
The fund’s investors include major national and regional banks, most of which are repeat investors with Cinnaire. The 22 properties in the fund will support approximately 2,825 low-income residents with 1,909 bedrooms.

“Our Housing Tax Credits Funds continue to grow and attract new investors,” said Josh Ghena, Senior Vice President Syndication Funding. “With this fund, we were seeking new and innovative solutions and partnerships to address the affordable housing crisis, particularly for seniors and special needs populations. Our continued growth means more families in our footprint have safe, quality affordable homes, the foundation for healthy communities.”

Two properties representing the diverse investments of the fund include:

The Sanctuary at Brewster in Detroit, MI, a transformative project providing comprehensive support for youth transitioning out of the Michigan Foster Care System. The new construction property will provide 52 one-bedroom apartments with 100% serving households at 60% of the area median income. All units will be Permanent Supportive Housing supported by housing-choice vouchers from MSHDA. The project is being developed by MHT Housing and will be managed by Continental Management – two longtime partners of Cinnaire.

CC Lane Apartments in Oregon, WI, new construction of 70 units of affordable rental housing for families with incomes up to 30%, 50% and 80% of the area median income. The property will include a mix of garden-style one-bedroom, two-bedroom and three-bedroom units. Amenities include a community room, business center, parking facilities and outdoor recreation center with grilling stations and fire pit. CC Lane is being developed with Northpointe Development Corporation. Cinnaire has a longstanding partnership with Northpointe developing more than 20 affordable projects together, including award winning communities.

Both developments are expected to be completed and available for residents in 2025.

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Aerial view of suburban neighborhood
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Executive Letter: New WBA Grant Opportunity for Housing and Economic Development

By Rose Oswald Poels

WBA has an opportunity to provide five (5) grants of $10,000 each for member banks to use for housing, economic development, and certain financial literacy purposes in 2024. The WBA Board is excited to offer members this new funding opportunity to help support affordable housing and economic development initiatives your bank may engage in this year. The criteria for the grants are outlined below and applications must be received by WBA no later than 5:00 p.m. Central Time on Friday, March 15, 2024.

There are three broad categories for which the grant proceeds may be used: housing and housing literacy, economic development/community investment, and financial or cyber literacy. The funds must be used for one of these purposes and directly benefit consumers and/or businesses in Wisconsin. Grant recipients will be asked to submit an impact report about how the funding was used, a description of the program or project and goals achieved, and specific metrics to illustrate the consumer/business impact of the program or project. The impact report must be provided within 30 days from the date the grant proceeds were used.

Some examples of programs that may qualify for a grant include:

  • Provide financial education and housing counseling to consumers as a means of improving home ownership opportunities.
  • Conduct a housing study in your community to help leaders identify housing needs to sustain population numbers and/or manage population growth.
  • Fund expert speakers at a meeting (e.g., rotary event) or community event on housing, housing literacy, lowering barriers to affordable housing, expanding housing supply, or economic development through the growth of small business.
  • Create tools (e.g. brochures, videos, other) that raise awareness of the benefits of home ownership for Wisconsin consumers.
  • Hold events or create educational resources intended to increase consumer or business awareness of financial health and well-being, cyber literacy, and/or credit building and repair strategies.

Please complete the grant application found here by March 15, 2024 to be considered. WBA will provide all applicants with a response no later than April 19, 2024. If you have any questions on this grant opportunity you may contact me or Daryll Lund.

Apply Now
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Wooden framework for house
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Addressing Housing Affordability in Wisconsin

Initiatives in eastern Wisconsin help to provide workforce housing

By Hannah Flanders

In July 2023, Governor Tony Evers signed into law Wisconsin’s largest ever investment into affordable housing. The historic $525 million investment helps to bolster the state’s affordable housing initiatives and establish loan programs that aid builders and developers to expand infrastructure, spur new construction, and prompt existing home improvements.

Already, bankers across the state are committed to fostering strong communities. With Wisconsin’s recent legislation, opportunities to support unique initiatives and help ensure equitable access to housing have only expanded. Housing supply and affordability have long been a concern across the state. While rental prices and the median cost of homes steadily rise, inventory continues to be a major issue. Throughout Q3 2023, Wisconsin hovered around only 7,600 active listings. As individuals and families in Wisconsin struggle to afford what limited property is available, many — including bankers — are concerned about the impact the housing market will have on Wisconsin’s workforce.

Supporting Housing Initiatives

In a report published by Forward Analytics in September 2022, it is estimated that 130,000 individuals representing the state’s working population will leave Wisconsin by 2030. Aiding in expanding affordable housing programs across Wisconsin is not only a significant way for banks to demonstrate their commitment to their communities; banks play a critical role in stabilizing communities, attracting and retaining talent, fostering economic growth, and helping local families to begin building their generational wealth.

Workforce housing, as defined by the Wisconsin Legislative Council, is housing that requires households to spend no more than 30% of 140% of the local area’s median income. These homes are intended for individuals or families whose household earnings do not surpass 140% of the area’s median income.

Already, several banks — including Cleveland State Bank, Collins State Bank, Oostburg State Bank, and Waldo State Bank — have partnered with the Sheboygan County Economic Development Corporation (SCEDC) to aid in actualizing the Forward Fund, a three-phase workforce housing project aiming to establish 600 entry-level homes in the county.

The Forward Fund was initially a $10 million investment in workforce housing spearheaded by Johnsonville LLC, Kohler Co., Masters Gallery Foods Inc., Sargento Foods Inc., and Sheboygan County. Working alongside the partnering Wisconsin-chartered banks in the area, developers are ensuring its future residents are able to access mortgages and loans that allow families to take the first step toward owning a home in Sheboygan County.

“It was in the best interest of our communities that we worked together,” notes Ben Becker, president of Collins State Bank, on the collaboration with Cleveland State Bank, Oostburg State Bank, and Waldo State Bank. “When people spend less on housing, they have more disposable income to spend on other goods and services, which can stimulate the local economies. When our community benefits, we benefit.”

With construction underway, the first project — Founders’ Pointe in Sheboygan Falls — is expected to be completed by the end of 2024 and feature 54 single-family units available for under $250,000.

“Upon completion of the project, there will be opportunities for permanent financing, and other financial institutions could get involved,” says Becker. “Several other communities are currently exploring similar projects for affordable housing, which will create additional opportunities for involvement throughout Wisconsin.”

In Washington County, leaders, employers, and workers have also expressed concern over the state of the county’s quality and stock of houses. As such, the Washington County Community Development Department established the Next Generation Housing Initiative in 2021.

With a mission to bring 1,000 new owner-occupied housing units under $420,000 by 2032, the initiative has already broken ground on two pilot developments — The Oaks of Jackson subdivision and lots 67–73 in the Skyway Park subdivision (Hartford). Between the two developments, the initiative will make 108 single- and mixed-family homes available to area residents.

Brian Heckendorf, senior vice president – director of community banking at Westbury Bank and village president of Jackson, Wisconsin, has a hand in the project not just from a banking standpoint, but as a community leader as well.

“I see this development helping various demographics from first-time homebuyers all the way to empty nesters that are looking to downsize,” Heckendorf notes. “This housing initiative will also help our local businesses fill their staffing needs better by keeping more people working and living in Washington County.”

Through Westbury Bank’s involvement in the program, several bankers helped to provide expertise as the County worked to establish guidelines for the initiative. “Working alongside a team of realtors, lenders, title companies, attorneys, and Washington County employees, our goal is to ensure that new homeowners looking to buy are able to obtain conventional loans,” adds Heckendorf.

In addition to the Forward Fund and Next Generation Housing Initiative, the Northeastern Wisconsin Housing Community Development Block Grant (CDBG) Loan Program helps to address the affordable housing as well as community and economic development needs of non-urban areas of Brown, Calumet, Door, Fond du Lac, Kewaunee, Manitowoc, Marinette, Outagamie, Sheboygan, and Winnebago counties.

Since 2014, the state CDBG-funded program has been administered by Brown County in order to provide 0% deferred loan payment housing rehabilitation loans to low- and moderate- income (LMI) owner-occupied households and small-scale neighborhood-oriented public facilities improvements, among other activities, to residents. Larger cities, including Appleton, Fond du Lac, and Sheboygan, receive CDBG funds directly from the U.S. Department of Housing and Urban Development (HUD).

Housing Provisions

While several preexisting initiatives continue to make investments in affordable housing across the state, Wisconsin’s 2023–2025 state budget also included several supplemental items in support of local workers, families, and communities that are predicted to make a historic impact across the state.

In the spring of 2023, the Workforce Housing Package was first introduced by Assembly Housing Chair Robert Brooks (R–Saukville) and Senate Housing Chair Romaine Quinn (R–Cameron) after a year of discussions between a coalition made up of the League of Wisconsin Municipalities, Wisconsin Builders Association, Wisconsin Counties Association, Wisconsin Housing and Economic Development Authority (WHEDA), Wisconsin REALTORS® Association, and Wisconsin Towns Association. The package garnered bipartisan support in both the State Assembly and Senate before being signed into law. The programs then received funding as part of the 2023– 2025 state budget.

“With this package, the coalition was most concerned with spurring the development of workforce housing,” notes Brad Boycks, executive director of the Wisconsin Builders Association. “The first step in making housing in Wisconsin more accessible is providing developers with the resources to both build and remodel single- and multifamily homes.”

The 2023 Wisconsin Housing Package encompasses the following five laws:

  • Act 14: Residential Housing Infrastructure Loan Fund

Creates a residential housing infrastructure revolving loan fund and loan fund program. Both programs are administered by WHEDA and awarded to developers for the purpose of workforce or senior housing. Loans may also be awarded to the governmental unit having jurisdiction over the development.

  • Act 15: Main Street Housing Rehabilitation Loan Fund

Creates a main street housing rehabilitation revolving loan fund and loan fund program. Both programs are administered by WHEDA and awarded to the owner of single-family or multifamily rental housing for the purpose of housing rehabilitation.

  • Act 16: Local Regulation of Property Development

Addresses the judicial review of local residential development decisions; approval of permits for residential housing developments; the procedure for amending a zoning ordinance; appeal of county conditional use permit decisions; and planned development district zoning.

  • Act 17: Workforce Housing Rehabilitation Loan Program

Modifies certain parameters of the workforce housing rehabilitation loan program to expand upon the specifics — including type of rehabilitation and type of home — that are eligible for a loan. Additionally, the Act allows WHEDA to establish an interest rate (at or below market rate) for a workforce housing rehabilitation loan.

  • Act 18: Commercial-to-Housing Conversion Loan Fund

Creates a commercial-to-housing conversion revolving loan fund and loan fund program. Both programs are administered by WHEDA and awarded to the developer to cover construction costs for the conversion of a vacant commercial building to a new residential housing development that consists of workforce or senior housing.

For bankers, the 2023 Wisconsin Housing Package encourages banks to foster partnerships with WHEDA that significantly enhance the banks’ ability to assist customers in accessing these housing programs tailored to their specific needs. This collaboration not only helps banks to extend their traditional financial services by ensuring their customers are aware of the resources available to them, but bankers are also able to understand the nuances of each program and guide their customers effectively.

“While the loans provided by WHEDA are not meant to be the primary source of funding, it is important for bankers to know and understand what is included in the 2023 Housing Package in order to share the affordable opportunities with their customers,” notes Tom Larson, president and CEO of the Wisconsin REALTORS® Association. “By bridging financial gaps and offering support beyond conventional services, banks reinforce their dedication to the well-being of their customers and the communities they serve.”

Taking the Lead

As initiatives and opportunities for affordable housing emerge across the state, bankers have the unique opportunity to invest in their existing and future neighbors.

“In the last several years, many of us have experienced a very tight workforce environment while housing costs, whether renting or owning, continued to increase significantly,” says Becker. “Affordable housing directly contributes to the overall well-being and prosperity of a community, and we, as community bankers, have the opportunity and responsibility to support strategies that align with our mission to serve the needs of our communities.”

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questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

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