Local ‘corridor’ to create affordable housing as rent skyrockets
As rent rates continue to rise across the country, so too does a demand for affordable and transitional housing. In response, the state of Wisconsin permitted the distribution of $32.5 million in tax credits for affordable housing projects. The Corridor, an apartment complex located on North Main Street in Oshkosh, has been on the receiving end of these credits, obtaining over one million dollars in Tax Increment Financing (TIF) dollars. American Rescue Plan Act (ARPA) funds constituted $300,000 of the $16 million total of the project.
The support is not going to waste as Commonwealth Development Corporation, the company behind the Corridor, has developed a three-story building it hopes will perfectly fulfill the community’s needs. Senior project development manager for the Corridor, Justin Mitchell, hopes to broaden the decision base.
“We want to have the people impacted by the development have a say in it,” he said.
This includes not only the people who will be housed and serviced by the development, but the people living near the site as well as the patrons of Main Street businesses.
“Along both streets, we have buildings that will be compatible with the neighborhood,” Mitchell said. “We are not trying to create another white box commercial space,”
This space will be dedicated to the Oshkosh Child Development Center (OCDC), housing what will become the only licensed group child care center in the city that operates during second shift hours. As child care centers across the United States struggle with rising labor costs, success can be a challenge. To help with this, Commonwealth and The Corridor are furnishing the space above the market standard, with pre-installed plumbing, furnished bathrooms, and electrical work, at the price of one dollar a month. Though a strikingly low price, the Commonwealth saw a need, according to Mitchell.
“We noticed a serious gap in the community. There is not a single licensed group child care provider that is open second shift. Even during the daytime, there is a well documented shortage of affordable child care,” he said.
The daycare will serve children ranging from six weeks to 12 years and is targeted to meet the most recent childcare standards. In addition to the OCDC, the building will feature multiple amenities on the first floor and will not contribute to the ever-expanding number of “white box” spaces in downtown Oshkosh, according to Mitchell.
“The building includes a business center, fitness center and a community center,” he said.
The building is also uniquely built to meet multiple sustainability and green standards by investing in ENERGY STAR benchmarks and extensive tree and shrubbery plantings.
The location of the development is notable as well, situated on major biking and busing lanes and within walking distance of multiple grocery stores and over 10 parks. The Corridor meets more than just community childcare and architectural needs as it combats the struggle of finding affordable housing, a critical issue in Oshkosh. Oshkosh housing continues to increase in cost, rent and mortgages. Joe Stephonson, an Oshkosh City Council member, recognizes the problem.
“Our issue is almost entirely a supply issue,” he said “All types and markets of housing help to alleviate the supply induced price hikes we have seen over the past few years.”
The city’s increased pricing has been on the up-tick while available housing has depleted, according to Alex Schmidt, a local renter.
“It’s hard to find affordable housing in Oshkosh,” she said. “The first apartment I had was $750 a month, and the last one was $950 a month.”
Stephenson recognizes that this problem will be resolved by diversifying housing options for the area’s residents.
“We need to be building for all income levels because doing that will help to alleviate supply at all market levels,” he said.
The Corridor is part of the solution, directly shown through its efforts in pushing for affordable housing within the Oshkosh area. It provides housing for people anywhere in the range of 30-80% on the area’s annual median income spectrum. This means that the development offers a wide range of apartment types that all fall under the market standard price. Most importantly, they do not sacrifice quality or the fulfillment of additional resident needs in order to remain affordable, noted Mitchell.
“What The Corridor does is provide a market quality, just as good, if not better, than apartments in the area, but at a cost 23-24% lower than the market average,” he said.
This variety, as well as a more manageable cost, contribute to a housing “continuum,” providing residence for a plethora of different consumers with differing needs. This housing continuum is the overarching goal of the city, and is a key point in all of their housing projects, according to Stephenson.
“Oshkosh has numerous housing projects on the horizon,” he said. “About half are affordable projects and the other half are market rate. I believe this is the correct approach.”
by Isaac Considine-Buelow
Published December 2nd, 2024
Oshkosh West Index Volume 121 Issue III