La Crosse, WI
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Replacement Housing Program History
A HUD National Award Winning Program!
The Replacement Housing Program was started as a response to conspicuous demographic changes that became evident after the 1990 Census data was evaluated. From 1980 to 1990, homeownership dropped from approximately 54% to 46% and approximately 50% of the city's housing was constructed prior to 1950. Much of the older housing stock was modest at its inception and has suffered neglect as housing trends changed. Loose zoning regulations, lack of open land for housing development and expansion of institutional entities contributed to the change of the residential character of older neighborhoods.
Need for neighborhood stabilization was a driving force. Deteriorating housing and an increase in poor quality rental housing has been acting as a deterrent to reinvestment in owner occupied housing. Dramatic increases in student enrollments in the 70's and 80's significantly impacted the housing market. The Replacement Housing Program creates new, owner-occupied, single family dwellings in a manner that is consistent with period architecture and is still affordable. No one expects the program to rebuild entire neighborhoods. It is designed to eliminate the worst housing and improve the environment so others will reinvest in decent housing.
Funding
In 1996, the La Crosse Common Council approved CDBG funding for the program for site acquisition and clearance. In following years, CDBG and HOME Investment Partnership Program funds were dedicated for additional acquisitions and site development. Since the inception, $425,000 of CDBG funds has been budgeted for acquisition and clearance. $651,000 of HOME funds has been budgeted for site development. Funds returned to the City at sale of properties developed through the program are dedicated to the continuation of the program. The program absorbs demolition and development costs that exceed market value of the homes. The Program attempts to cash out off the deals at sale to recycle money for new developments. To make the homes affordable, the city may take second mortgages that are deferred until the next sale. The homes are sold at market value in order to maintain market values of surrounding homes.
(Photo credit: School District of La Crosse/La Crosse Central High School)
Qualifying Standards
To qualify for purchase of the home, purchaser must have an income below 80% of Median Family Income and be able to secure mortgage money. The purchaser must also participate in the Community Action Program Homebuyer Assistance Program, which provides housing counseling and down payment assistance.
Best of the Best
In August of 2000, the Department of Housing and Urban Development presented the City of La Crosse Replacement Housing Program with the "Best of the Best" award at the Annual Best Practices Award Ceremony. Only the top 100 nominations of the over 3000 national submissions were so awarded. The program was recognized not so much for building homes as for how the community worked together to address a need.
Collaboration
The cooperative participation of many partners makes the program feasible, and HUD honored the program because of that collaborative nature. Each of the partners plays a critical role, as follows:
- City of La Crosse CDBG Program (HUD): Acquisition and site clearance
- City of La Crosse HOME Program (HUD): Site development
- Western Wisconsin Technical College: Wood Technologies course for construction labor and match funds value
- Community Action Program (HUD): Housing counseling and down payment assistance
The Future
Future Replacement Housing Program activities will hinge on availability of federal funding.
Community cooperation is essential and will likely continue, but the cash is the fuel that makes this engine run. By using deferred payment loans, the city can develop a pool of loan funds that can support the program, but a minimum of 15 years federal support for the program will be needed to build a loan base that supports continued operation. The economic vitality of HUD is critical to the economic viability of the Replacement Housing Program and related activities.