09/12/2025
*HOUSING FOR ALL – KNOW THE FACTS*
In February 2025 the Sun Prairie City Council took a significant step toward improving housing access and stability by utilizing Wisconsin’s One-Year Tax Increment District (TID) Extension, which will add approximately $6.3 million to the City’s Affordable Housing Fund (AHF) in 2026.
At the same meeting, Council adopted the Affordable Housing Policy, which outlines the programs that could be funded through this resource such as loan programs for new affordable rental and owner-occupied housing, down payment assistance for low-income first-time homebuyers, rehabilitation loans for existing homes, housing support services, and funding for housing staff and outreach.
This Week’s Spotlight: New Affordable Renter-Occupied Housing Loan Program
---WHAT WOULD THIS PROGRAM DO?---
This program would offer loans to developers to build new affordable rental housing in Sun Prairie. To qualify, projects must:
🔹Be affordable for households earning 50% of Area Median Income (AMI) or less ($64,900 for a family of four)
🔹 Commit to a minimum 30-year affordability period
🔹 Include on-site supportive services for residents
🔹 Leverage other funding sources like the housing tax credit or Dane County Affordable Housing Development Fund
🔹 Provide tenant protections through a required Tenancy Addendum
---WHY IS THIS TYPE OF PROGRAM IMPORTANT?---
As rental prices continue to rise faster than wages, many Sun Prairie residents are struggling to find affordable, stable housing. This program addresses the need by:
🔹 Increasing the supply of high-quality, income-restricted rental units
🔹 Supporting households with the greatest financial need
🔹 Promoting housing stability through on-site supportive services
🔹 Ensuring accountability by entering into a loan agreement with the developer