City of Sun Prairie Awarded $2 Million to Build Affordable Housing with Habitat for Humanity of Dane

JOINT PRESS RELEASE – November 22, 2022

Jake King
Communications and Diversity Strategist
jking@cityofsunprairie.com
(608) 332-5397

Jenny Ballweg
Vice President of Communications
ballweg@habitatdane.org
(608)-225-3157

 

City of Sun Prairie Awarded $2 Million to Build Affordable Housing with Habitat for Humanity of Dane County

The City of Sun Prairie has been awarded $2,231,821 from the State of Wisconsin Department of Administration (DOA) through a Community Development Block Grant Disaster Recovery Program (CDBG-DR) to build 10 new affordable single-family residences for low- to-moderate-income families.

Nationally, the U.S. Department of Housing and Urban Development (HUD) provides federal funding to states through CBDG programs. Wisconsin uses this federal funding to provide affordable housing, suitable living environments, and expand economic opportunities to underserved individuals and families. Dane County was one of the counties impacted by the flooding in 2018 and qualified for disaster recovery assistance. The City will partner with Habitat for Humanity of Dane County to create much-needed housing opportunities.

Over the last two years, Sun Prairie’s housing vacancy rate has been under 5%, pointing to a tremendous housing demand and an extreme need of additional housing. The 2020 U.S. Census estimates the population of Sun Prairie is 35,967 and the DOA Demographic Services Centers projects the 2025 population will be 37,880 and the 2030 population will be 40,830, which is a 5% increase in the next few years and a 13.5% increase by 2030. The rapid growth and low vacancy rate contribute to making affordable housing options even more limited.

These grant-funded homes will be built for families earning between 30 to 60 percent of Dane County’s median household income and are unable to qualify for most traditional financing options. Each family will invest between 275 to 425 hours of “sweat equity” building their homes alongside volunteers and receive a 30-year mortgage with a 0% interest rate and monthly mortgage payments capped at 30 percent of the family’s gross income. This makes homeownership affordable and sustainable for Sun Prairie residents.

“This funding will provide so much more than walls and a roof – it creates a brighter economic future for families of modest means right here in Sun Prairie,” Habitat for Humanity of Dane County CEO Valerie Renk said, “We’ve seen firsthand how homeownership can break the cycle of generational poverty, as

well as racial and income barriers, like no other.”As Sun Prairie continues to experience this growth, the City will continue to explore the ways it can address both current and future housing challenges.

As Sun Prairie experiences the rapid growth, the City will continue to address housing current and future housing challenges.

“With Sun Prairie being amongst the fastest growing communities in the state, it is our priority to create pathways to affordable and accessible housing,” said Becky Binz, Housing and Equitable Development Planner. “These funds provide an incredible opportunity to supply housing for underserved individuals and families in our community.”

To learn more about the CBDG-DR program, please visit https://doa.wi.gov/Pages/AboutDOA/CDBG_Disaster-Recovery.aspx

About Habitat for Humanity of Dane County

At Habitat for Humanity of Dane County, families are offered a hand up, rather than a handout. Through our volunteer network, generous donors, and sales from our two Habitat ReStores, we’re helping families achieve strength, stability and self-reliance to build a better life through shelter. In Dane County alone, one in eight people lives in poverty, including 16% of all Dane County children. Learn more by calling 608.255.1549 or visit habitatdane.org.

About City of Sun Prairie

Sun Prairie is a vibrant and thriving community located in northeastern Dane county, just east of the City of Madison. The City of Sun Prairie has experienced strong population growth since its incorporation from a village to a city in 1958, undergoing a transformation from a relatively small community of less than 4,000 to an estimated 36,394 today.