Lake Delton Housing Study by MSA Professional Services

Lake Delton, WI Housing Study 2020

Acknowledgments

Lake Delton Housing Study - Steering Committee

Marije Ajvazi Tom Diehl Joe Eck Tom Holtz Bob Nagel Todd Nelson Bill Ryan Dave Schultz Romy Snyder

Prepared by: This document was prepared by MSA Professional Services, Inc. with assistance from Village Staff. Project No.: 00083235

Space reserved for resolution.

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â&#x20AC;&#x153;

All who live, work, and play in Lake Delton should have access to affordable and adequate housing in an area of their choosing. Users of the Village who are able to become residents of the community are a source of strength and growth toward our shared future.

â&#x20AC;&#x153;

Purpose This Housing Study presents an in-depth look at the Village of Lake Deltonâ&#x20AC;&#x2122;s housing conditions, market, and needs. Though national discourse portrays housing affordability as a universal crisis, we know that every community is unique, having distinct needs dependent upon local economic and social conditions. This study examines these conditions in Lake Delton, and proposes how housing needs can best be met - especially for those that work in the Village but reside elsewhere.

Content O1 09 19

INTRODUCTION » Study Process » Affordable Housing » Housing Affordability » Workforce Housing » Who Needs Housing? ABOUT Lake Delton » Community Basics » Population » Households » Age » Income » Projections RENTAL MARKET » Affordability » Tenure » Rental Housing Stress » Consumption » Unit Types » Affordability Trends » Cost » Vacancy » Size » Age

59 67 75

OWNERSHIP MARKET » Affordability » Tenure » Owner Housing Stress » Consumption » Spatial Affordability » Affordability Trends » Entry-Level Affordability » Availability » Mortgage Status » Unit Types » Size OTHER POPULATIONS » Homelessness » Aging Populations » Disability LOCAL IMPACTS » Assessment » Improvement Value Ratio » Available Lots/Lot Value » Zoning » Development Fees CHALLENGES & RECOMMENDATIONS » Market for Housing » Housing for Employees » Options for Residents » Aging Populations » Sense of Place » Number of Units

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Introduction The Study & Measures of Need

2020 Housing Study

Print Date: 12/9/2019

Adams Camp Douglas

Lake Delton Regional Context New Lisbon

Hustler

MONROE COUNTY M A R Q U E TT E COUNTY

ADAMS COUNTY

Mauston

JUN EAU COUNTY

GREEN LAKE COUNTY

Elroy Lyndon Station Union Center

VERNON COUNTY

Wisconsin Dells

Wonewoc

Lake Delton La Valle

Portage

Ironton Cazenovia

West Baraboo

Rock Springs

Lime Ridge Printed By: aconverse, File: \\msa-ps.co m\fs\Project\00\00083\00083235\GIS\00083235_RegionalM ap.mxd

Pardeeville

Reedsburg

North Freedom

Wyocena

COLUMBIA COUNTY

Baraboo

Loganville

Doylestown

SA U K C O U N T Y

RICHLAND COUNTY

Rio

Poynette Merrimac

Arlington Lodi

Plain

Prairie Du Sac

Mun

Sauk City

DANE COUNTY

This study was commissioned by the Village of Lake Delton in October 2019. The Village has identified housing as a critical issue that needs to be addressed in order to improve Lake Delton, provide opportunity for employees and residents, and continue to grow the economy. Village leaders have clearly identified these needs based on feedback from various stakeholders. The purpose of this study is to help the Village better understand its housing market and to craft targeted strategies to improve housing options.

Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community

nevertheless important to a holistic understanding of the market. This report attempts to document conditions and trends in the overall market, including insight on one central question: why do individuals, families, and households choose to live outside the Village?

There are two main components to all municipal housing markets. The first component of the market is all of the housing located in Lake Delton - and the second is all of the housing located outside of Lake Delton that is occupied by people who work or otherwise do business in the Village. The housing physically located in Lake Delton is the easiest to measure and analyze, and is also the market portion that the Village has the most control over. Housing outside of the Village is more difficult to quantify and qualify, but it is 2

Village of Lake Delton

Study Process

This study uses a variety of methods and data to better understand the housing market. Objective, measurable data were collected from the Village, the Multiple Listing Service (real estate listings and sales), the State of Wisconsin, the U.S. Census Bureau, and the U.S. Department of Housing and Urban Development. The Village is at times compared to its regional peer communities, as well as among a wider context (county, state, nation) in a variety of ways, and also compared to itself in the form of time-series data that reveal trends. This study also incorporated a series of interviews with people familiar with the housing market, and a community survey of area residents, employees, and property managers.

Project Oversight

The study was initiated by the Lake Delton Village Board. A steering committee was created that represented a wide variety of stakeholders in the community, including community members with expertise in the local economy and housing markets. This steering committee met a total of three times throughout the project to provide direction to the planning team.

Interviews

The planning team met with and interviewed a variety of residents with knowledge and insight into the local housing market, including those who know it best: users of the market themselves. These interviews included realtors, lenders, builders, landlords, employers, and employees. Feedback collected through interviews often naturally gravitated toward similar topics and knowledge, indicating a strong shared understanding of how the local housing market inherently functions. This feedback is described in the Public Engagement section of this report.

2020 Housing Study

Community Survey

An extended online community survey was conducted from December 2019 - February 2020. In total, the survey received 203 responses from individuals that either live, work, or recreate in the Village. The survey was promoted through an extensive community network, as well as through the Wisconsin Dells School District. Full responses to the survey are provided in Appendix A, and relevant findings are discussed in the public engagement section of this report, including crosstabulations between residents and commuters.

What is Affordable Housing? Affordable Housing is housing that serves

the residents currently living in a community commonly residents with no income up through residents making 80% of the area median income. In Lake Delton, the area median income (as defined by the U.S. Department of Housing and Urban Development for Sauk County) is $70,500 for a family of 4. This means that the 80% income limit is $56,400 for a family of 4.

Funding for newly constructed affordable

housing comes through subsidy that offsets costs of construction and/or operation. This allows rents to be set at an amount that is manageable for low-income households, while also ensuring they have residual income to afford childcare, transportation, healthcare, grocery, and all other amenities necessary for personal and family health and stability. Other forms of affordable housing include:

Income Limits calculated by HUD allow

» Naturally Occurring Affordable Housing » Housing Operated by Non-Profits » Vouchers, Tax Credits, Other Federal Programs

general ranges for which housing market service levels are measured. Current (FY 2019) income limits are:

Household Income Categories Median Family Income

Sauk County

$70,500 (100% AMI)

Persons in Household 1

Extremely Low Income (30% AMI)

$14,850

$16,950

$21,330

$25,750

$30,170

$34,590

$39,010

$43,430

Very Low Income (50% AMI)

$24,700

$28,200

$31,750

$35,250

$38,100

$40,900

$43,750

$46,550

Low Income (80% AMI)

$39,500

$45,150

$50,800

$56,400

$60,950

$65,450

$69,950

$74,450

Village of Lake Delton

Monthly Costs

30%

TransportaƟon

30% Savings/ Savings Other $1,489

$884

Housing

$1,164

2 Adults 1 Child Annual Income = $45,000

Medical $585

Food Childcare

$585

$600

Housing Affordability describes

the relationship between housing cost and household income. Affordability os measured at the household level, inSavings terms of the percentage Housing $1,489 percentage of gross income that goes toward $1,763 housing costs. The widely accepted standard for “affordable” is 30% of total household costs going to housing. For renters, housing costs include contract rent, utilities, and renters insurance. Homeowner costs include principal, interest, taxes, TransportaƟon $884 This measure is relative, insurance, and utilities. Food $585 meaning that higher income households have larger shares of homes thatMedical wouldChildcare be affordable, $600 $554 while lower income households generally have less affordable options within the housing market.

Housing $1,763

2 Adults 1 Child Annual Income = $70,500

TransportaƟon $884

Food $585

Medical $554

Childcare $600

Affordability Limits describe the housing

prices considered to be affordable within a particular region, tied to the median household income in the region. Lake Delton is part of the Sauk County region, where the median income is $70,500 for a family of 4. A household earning exactly 100% of the median income could afford: » $1,762.50 in monthly rental costs » $236,800 home purchase A household earning 50% of the area median income (which equates to one full time job at $17/ hour) could afford: » $881.25 in monthly rental costs » $118,450 home purchase

What is Housing Affordability? 2020 Housing Study

What is Workforce Housing? Workforce Housing is housing that is

Housing Variety is a necessary component

affordable to the workforce in a community. Because incomes within the workforce vary, a range of housing options is needed to fit the needs of the community. Workforce housing also means ensuring supply of affordable housing for employee households that earn minimum wage - and ensuring appropriately priced housing for moderate to high income earners in both the rental and ownership markets.

of housing stock, as households have a variety of preferences that impact where and how they can live. Important types of variety necessary to serve area employees include structure types, sizes, locations, and price points.

Workforce Affordability is different

among essential members of the workforce. Management employees, service workers, municipal workers (police, fire, etc.) all have housing need, while all generally desire costappropriate housing that allows enough residual income to support other necessary expenses.

Income categories are calculated by HUD, and used to determine appropriate monthly housing costs across different regions. For the Lake Delton region (Sauk County), affordability limits are:

Housing Affordability Limits Monthly Housing Cost Limit

Sauk County

$1,763 (100% AMI)

Persons in Household 1

Extremely Low Income (30% AMI)

$371

$424

$533

$644

$754

$865

$975

$1,086

Very Low Income (50% AMI)

$618

$705

$794

$881

$953

$1,023

$1,094

$1,164

Low Income (80% AMI)

$988

$1,129

$1,270

$1,410

$1,524

$1,636

$1,749

$1,861

Village of Lake Delton

There are two categories of households

Severe Cost Burden (SCB) refers to households paying more than 50% of income toward housing.

whose needs are not being met by the current supply of housing in the village: » »

Looking solely at the needs of residents currently living in the Village, there is need for:

those that live here but are spending more than 30% of income to do so

» 325 units of rental housing • monthly cost varying from $645 to $1,400

those that could live here but do not 250

» 115 units of ownership housing • sales cost varying from $98,000 to $200,000 200 30 30 150

100

130

110

< 30% AMI

31% - 50% AMI SCB Owners

20 0 81% - 100% AMI

51% - 80% AMI CB Owners

SCB Renters

> 100% AMI

CB Renters

Who Needs Housing? 2020 Housing Study

Employee Housing was identified by the project steering committee as well as in interviews as a

primary need for the community. Per the U.S. Census, 3,458 workers live outside Lake Delton and commute into the Village for work, while only 224 persons both live and work in Lake Delton.

Inflow/Outflow of Primary Jobs

Municipalities listed in the table on right represent nearly 2,400 employees whose primary job is in the Village. This is 69.3% of all employees commuting into Lake Delton daily for work.

Top Employee Places of Residence Municipality

Number of Employees

Baraboo

475

Reedsburg

362

Delton (Town)

343

Wisconsin Dells

286

Portage

210

Baraboo (Town)

133

Lyndon (Town)

130

Dellona (Town)

126

Dell Prairie

119

Mauston

109

West Baraboo

103

Who Needs Housing? 8

Village of Lake Delton

About Lake Delton

2020 Housing Study

Print Date: 12/9/2019

Community Basics

Adams Camp Douglas

New Lisbon

Hustler

MONROE COUNTY M A R Q U E TT E COUNTY

ADAMS COUNTY

Mauston

JUN EAU COUNTY

GREEN LAKE COUNTY

Elroy Lyndon Station Union Center

VERNON COUNTY

Wisconsin Dells

Wonewoc

Lake Delton La Valle

Portage

Ironton

Pardeeville

Reedsburg

Cazenovia

West Baraboo

Rock Springs

Lime Ridge

North Freedom

Wyocena

COLUMBIA COUNTY

Baraboo

Printed By: aconverse, File: \\msa-ps.co m\fs\Project\00\00083\00083235\GIS\00083235_RegionalM ap.mxd

Loganville

Doylestown

SA U K C O U N T Y

RICHLAND COUNTY

Rio

Poynette Merrimac

Arlington Lodi

Plain

Prairie Du Sac

Mun

Sauk City

DANE COUNTY Sources: Esri, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), NGCC, (c) OpenStreetMap contributors, and the GIS User Community

Lake Delton is a community in Sauk County,

WI. Located along the Wisconsin River adjacent to Columbia County. The larger Lake Delton region also contains areas of Juneau and Adams County. The Village is a 1 hour drive from Madison, 2-2.5 hours from both Green Bay and Milwaukee, and 3 hours from both Chicago and Minneapolis. The largest of all adjoining municipalities, Lake Delton is known for both its natural and manmade landscapes, and as one of the major tourist destinations in the State of Wisconsin. Over 4.5 million tourists pass through the Village annually. 10

The larger Lake Delton region employs over 16,000 workers solely in support of the tourism industry, which brings approximately $1.2 billion dollars into the region annually, with an additional $400 million in indirect tourism impacts. Village businesses employ nearly 9,000 individuals at over 400 individual businesses during peak season. 32% of employees are in the service sector, 19% in “blue collar” positions, and 50% in “white collar” positions. There is little to no unemployment for residents actively seeking work, which displays both the strengths and challenges of the local economy. Village of Lake Delton

Population

Population within the region and the Village

itself has displayed relative consistency throughout the past decade. Lake Delton saw a net increase of 166 residents from 2009 to 2018 per American Community Survey estimates. This represents a total percentage growth of 5.9%, the lowest growth percentage among peer communities. The closest community in growth percentage is the Wisconsin Dells, which grew at approximately the same rate (6.0%) as Lake Delton in the same timeframe.

Population Growth Rates

As discussed in later sections, this population growth percentage is not altogether unexpected. Falling rates in the number of persons per household, coupled with housing markets that have not seen large amounts of increase in housing stock predict slow and steady population growth that does not directly correlate with the number of new units constructed. What is of note is that of all peer communities, Lake Delton experienced the lowest rate of growth.

Municipality

2009 - 2018 Population Growth

Annual Percent Change

Lake Delton

166

0.64%

Baraboo

1,107

1.07%

Reedsburg

930

1.15%

Wisconsin Dells

256

1.09%

Portage

584

0.65%

PopulaĆ&#x;on Trends

Population Trends

14,000

12,000

10,000

8,000

6,000

4,000

2,000

2020 Housing Study

Lake Delton

Baraboo

Reedsburg

Wisconsin Dells

Portage

Housheolds 6,000

Household Trends 5,000

4,000

3,000

2,000

1,000

Lake Delton

Baraboo

Reedsburg

Wisconsin Dells

Portage

Household growth within the Village, Household Growth Rates Municipality

2010 - 2018 Household Growth

Annual Percent Change

Lake Delton

-18

-0.16%

Baraboo

276

0.66%

Reedsburg

-18

-0.06%

Wisconsin Dells

0.90%

Portage

332

1.02%

although showing slight decline, has remained relatively steady since 2009. This relative consistency in households, combined with a larger population increase, displays against the national trend of lowered average household sizes, impacting demand for existing housing stock. Often this manifests in demand for familysized housing units, both rental and ownership, and appears to be driven by slightly larger family sizes since 2010. Within the region, consistent with population trends, Lake Delton has seen the lowest amount of annual percent change. This may represent many things, including children living at home longer and natural increases in family size. Population growth has come in spite of inmigration that would increase total household numbers. Although the Wisconsin Dells has a similar rate of population increase, they have displayed an increase in overall households likely due to availability of smaller unit housing in the community that aids in new household formation.

Households 12

Village of Lake Delton

Age Cohorts Age Cohort Population Change

Age Trends can help predict current and

future needs of the community. As populations continue to age, or add members to their households, needs change as well. Since 2010, the Village has seen the largest increase in population amongst children 0-9 years of age, nearly doubling during the timeframe. There has been a corresponding increase in persons aged 20-34, a typical age for the formation of family households that would correspond to an increase in youth. The only other age range displaying an increase are those of a retirement age, from 65-79 years old. These households likely aged into this category over the decade, which is consistent with general trends of aging in the County, State, and Nation as baby-boomers reach retirement. The largest share of households are those aged 20-34 and 50-64, consistent with general trends in generation sizes over time.

Annual Percent Change

Age Cohort

2010

2018

0 - 9 Years

203

412

9.25%

10 - 19 Years

195

134

-4.58%

20 - 34 Years

646

853

3.54%

35 - 49 Years

560

474

-2.06%

50 - 64 Years

599

576

-0.49%

65 - 79 Years

349

370

0.73%

80 and Over

195

161

-2.37%

Age Growth

Age Trends 900

800

700

600

500

400

300

200

100

2010

2020 Housing Study

2011 0 - 9 Years

2012 10 - 19 Years

2013 20 - 34 Years

2014 35 - 49 Years

2015 50 - 64 Years

2016 65 - 79 Years

2017 80 and Over

2018

Population Projections Population Projection Methods Projections based on CAGR refer to the compound annual growth rate from years 2010-2018. Peer communities are Wisconsin Dells, Baraboo, Reedsburg, and Portage. Projected growth is based on the average growth rate of all four communities.

Lake Delton Population Projections

2020

DOA Projection

3,375

3,695

3,985

4,185

4,320

2010-2018 CAGR

3,022

3,120

3,221

3,326

3,434

2010-2018 Peer Community CAGR

3,043

3,197

3,358

3,528

3,706

Projecting Lake Delton’s population

growth into the future is somewhat uncertain. For a community of the size of the Village, one large multi-unit building or a new subdivision development could significantly change the percentage growth in any one year. The community survey administered through this process indicated that 32.8% of Lake Delton

2025

2030

2035

2040

employees are very interested or somewhat interested in finding a place to live that is closer to their place of employment. Applying this to known 3,458 full-time employees that work in Lake Delton and live elsewhere, this could represent 1,134 employees interested in moving to the Village. Adding that population to the Village would bring Village population back in line with the highest projection by 2040 if units were availble to grow the population.

PopulaƟon ProjecƟons 5,000

Population Projections 4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

Lake Delton Actual

DOA ProjecƟon

2010-2018 CAGR ProjecƟon

Regional Peer Community Average Growth Rate

Village of Lake Delton

Household ProjecƟons 2,500

Household Projections 2,000

1,500

1,000

500

Lake Delton Actual

DOA ProjecƟon

2010-2018 CAGR ProjecƟon

Projecting Lake Delton’s future households

is tied to both future population projections as well as anticipated persons per household as demographics change and age. Across the nation, reductions in household sizes are expected to continue through at least 2040. This is indicative of populations continuing to age, dependents leaving their family households

Regional Peer Community Average Growth Rate

(creating their own), and longer formation periods for young-family households than existed in prior decades (young adults waiting longer to start families). Projection methods for the Village show drastic differences in future number of potential households - from a possible reduction using 2010-2018 household growth rate, to an increase of nearly 500 households by 2040 when planning utilizing Department of Administration projections.

Household Projection Methods Lake Delton Household Projections

2020

DOA Projection

1,515

1,673

1,817

1,922

1,997

2010-2018 CAGR

1,435

1,424

1,413

1,401

1,390

2010-2018 Peer Community CAGR

1,458

1,505

1,553

1,602

1,653

2025

2030

2035

2040

Projections based on CAGR refer to the compound annual growth rate from years 2010-2018. Peer communities are Wisconsin Dells, Baraboo, Reedsburg, and Portage. Projected growth is based on the average growth rate of all four communities.

Household Projections 2020 Housing Study

Age ProjecĆ&#x;ons

Age Cohort Projection 16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0 - 9 Years

10 - 19 Years

20 - 34 Years

As Populations Age, their housing needs

begin to change. While a family of four might be best suited to a three- or four-bedroom home, once children move out of the home they have they effect of overconsuming in the market using more than they need. Continuing to age, householders may prefer to size-down, making upkeep and care more accommodating to their preferred lifestyle. Similarly, younger households (both single-person and two-person) have needs for smaller units prior to family creation, often seeking smaller homes and apartments before needing larger homes once they begin to have children. Looking at projected population growth rates to 2040, the fastest growing populations are those age 65 and over. There is a distinct need for housing tailored to this age group, whether age-specific housing or policies that assist aging in place in their own homes. The remaining age groups show moderate projected increase, and may be served more generally by the housing market.

35 - 49 Years

50 - 64 Years

65 - 79 Years

80 and Over

Age Cohort Rates Age Cohort

2018

Projected Percent Projected Increase 2040

0 - 9 Years

412

3.4%

426

10 - 19 Years

134

10.5%

148

20 - 34 Years

853

5.0%

896

35 - 49 Years

474

8.6%

515

50 - 64 Years

576

6.8%

615

65 - 79 Years

370

23.5%

457

80 and Over

161

119.5%

353

Age Cohort Projections 16

Village of Lake Delton

Income Trends Village Percent Above/Below DiďŹ&#x20AC;erence County Income Distribution

Income and Earnings are central to

housing affordability. The more income that a household earns, more housing falls within their affordability threshold (<30% income toward housing). While incomes are mobile (households can move place to place), housing units are stationary. In practice, this means that households will often commute, choosing to live wherever they find the acceptable balance among convenience, quality, and affordability.

-0.9%

$200,000 or More

-4.4%

$150,000 to $199,999

$100,000 to $149,999

-10.7% 2.9%

$75,000 to $99,999

Among regional peer communities, Lake Delton has the lowest median and mean incomes - meaning that households who live in the Village earn less on average than those who live in other communities. In variance from the County, larger percentages of Lake Deltonâ&#x20AC;&#x2122;s population fall into lowerincome categories, and less of Lake Deltonâ&#x20AC;&#x2122;s population falls into high-income categories compared to income distribution for the County.

$50,000 to $74,999

-0.1%

$35,000 to $49,999

-0.1% 0.7%

$25,000 to $34,999

1.5%

$15,000 to $24,999

$10,000 to $14,999

11.1%

Less than $10,000

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Chart Title $90,000

Income (2018) $80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

Median Household Income

2020 Housing Study

Lake Delton

Baraboo

Mean Household Income Reedsburg

Wisconsin Dells

Portage

Sauk County (Total)

Employment Indicators

27%

12%

Graduated High School

32%

No High School Diploma

Some College or Associateâ&#x20AC;&#x2122;s Degree

0.0%

24%

Unemployment Rate

Bachelorâ&#x20AC;&#x2122;s Degree or Higher

Variance Village Percent Above/Below County Educational Attainment

Income is dependent on many other factors,

0.6%

Bachelor's or Higher

including resident educational attainment and the overall health of the economy. -0.7%

Some College or Associate's

-3.5%

Graduated High School

3.0%

Less than High School Diploma

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

Among Village residents, educational attainment runs roughly proportional to that of the County. For residents 25 and over, the Village has a larger share of residents than Sauk County that have not graduated High School (3% less than County share). Even with lower educational attainment, unemployment for the Village remains virtually nonexistent. For those in the labor force and seeking employment, there are enough opportunities for all residents to secure employment, whether in the Village or other communities.

4.0%

Employment Indicators 18

Village of Lake Delton

Rental Market Demand & Supply

2020 Housing Study

Rental Market

Residential Rental Properties

H ß 23 Trout Rd

E Hiawatha

Sauk County, WI

s in Rive r

Lake Sho re Dr

Clara Ave

12 2 /

Lake Delton Housing Study

lto

Birchwood Rd

Berry Rd

La Wisconsin Dells Pkwy

P ß Munroe Ave

Other Municipality

A ß

Residential Property Single Family Residential Condo

ll s De

Duplex

S wy Pk

Hillman Rd

/ 2

Multi-Family Residential

Mobile Home

Wisc

onsin Dells Pk wy S

Dell Creek

in on s sc Wi

urritt Ave SB

Xanadu Rd

+ * ,

de D

Lake Delton

an Dr

Canyo

A lc

Hillsi

n Rd

Bu nker

Park Dr

+ * ,

a Bl

Mixed Use

T ß

Ishnala R

Gasser Rd

Kalahari Dr

+ * ,

Busse Ln

Bunker Dr

Mi rro

Data Sources: Municipal Boundary: Sauk County (2019) Roads: Sauk County (2019) Residential Type: Inferred from tax assessment codes, residential address points, zoning classification and aerial review.

12 / 2 Fern Dell Rd

Hastings Rd

Fern Dell Rd

Moon Rd

ß BD

Lake Delton’s rental market consists of a

variety of housing types. Single-unit homes, rented condo units, and multi-family residential units are the most prevalent type of rental unit per Village assessor data. Because assessment data for the Village does not include number of multifamily units or tenure type (ownership/rental), assumptions were made to estimate the spatial distribution of rental units in the Village. In the above map, any unit owned by a LLC was classified as an assumed rental property. This is not a perfect, accurate measure 20

0.2

0.4 Miles

of the number of units (for example, condo units at Great Wolf Lodge are displayed as rental units under this measure). The map above also displays any properties under the ownership of a person who owns 3 or more residential properties - generally smaller landlords who may operate with or without a property management company. This data includes some vacation rentals (e.g. Wydham), but also landlords who own up to 25 single-family properties. Due to limited assessment data, it is difficult to distinguish between vacation rentals and year-round rentals. in the Village. Village of Lake Delton

Income of Residents is central to housing affordability. For ownership opportunities, this largely

refers to the â&#x20AC;&#x153;purchasing powerâ&#x20AC;? of a given household based on known income. Because the housing market extends outside of Lake Delton, and few employees of Village businesses live in the municipality, incomes shown below illustrate the median for Sauk County. Using the County as a general income measure more closely ties to the ability of employees to purchase housing in the Village, and are consistent with Wisconsin Housing & Economic Development Authority (WHEDA) and U.S. Department of Housing & Urban Development (HUD) guidelines.

Persons in Household

Median Family Income

Sauk County

$70,500 (100% AMI)

Extremely Low Income (30% AMI)

$14,850

$16,950

$21,330

$25,750

$30,170

$34,590

Very Low Income (50% AMI)

$24,700

$28,200

$31,750

$35,250

$38,100

$40,900

Low Income (80% AMI)

$39,500

$45,150

$50,800

$56,400

$60,950

$65,450

Purchase Limits based on the incomes above illustrate the general amount a household could

afford in the housing market without becoming housing cost burdened. These vary based on percentages of the Area Median Income (AMI) as well as family size. The median income household for the County could afford a $236,880 home purchase from a annual income of $70,500.

Persons in Household

Rent Limit

Sauk County

$1,763 (100% AMI)

Extremely Low Income (30% AMI)

$371

$424

$533

$644

$754

$865

Very Low Income (50% AMI)

$618

$705

$794

$881

$993

$1,023

Low Income (80% AMI)

$988

$1,129

$1,270

$1,410

$1,524

$1,636

Affordability Limits in the Rental Market 2020 Housing Study

[Following the Great Recession], household growth has finally returned to a more normal pace. Housing production, however, has not. The shortfall in new homes is keeping the pressure on house prices and rents, eroding affordabilityâ&#x20AC;&#x201D;particularly for modest-income households in high-cost markets. While demographic trends should support a vibrant housing market over the coming decade, realizing this potential depends heavily on whether the market can provide a broader and more affordable range of housing options for tomorrowâ&#x20AC;&#x2122;s households. - Joint Center for Housing Studies of Harvard University; State of the Nationâ&#x20AC;&#x2122;s Housing 2019

Village of Lake Delton

Tenure in the Housing Market

Tenure in the housing market refers to the

structure of occupancy - ownership or rental. Within the Village for year-round primary occupancy, more households rent their primary place of residence than own. This is consistent with general income trends (Lake Deltonâ&#x20AC;&#x2122;s median and lower-income households are a higher percentage of the population than in peer communities). Lower-income households nationwide are more likely to be renter households, and this is true in the Village as well. Of note however is that higher-income households (>100% AMI) make up a sizable portion of the renter population. This income range generally has higher rates of homeownership than shown. This indicates both a lack of supply of ownership opportunities in the Village, as well as demand for high-amenity market rate rental units to ease market pressure.

Households, Income & Tenure Income

Renters

Owners

Total

0% - 30% AMI

185

230

31% - 50% AMI

165

255

51% - 80% AMI

135

125

260

81% - 100% AMI

105

>100% AMI

265

365

630

Total

795

675

1475

Income / Household Distribution 700

Tenure by Income 600

500

Households

400

300

200

100

0% - 30% AMI

2020 Housing Study

31% - 50% AMI

51% - 80% AMI Owner

Renter

81% - 100% AMI

> 100% AMI

200

Tenure in the Housing Market 100

0% - 30% AMI

31% - 50% AMI

51% - 80% AMI Owner

of the commuter shed and larger Lake Delton housing market, display different trends in rates of homeownership. Income is generally higher for residents of these communities - as such it would be expected that they have higher rates of ownership than rental. However, the rates of ownership are significantly higher for each than in Lake Delton.

45.8%

Lake Delton is the only community under comparison that is majority renter households. Baraboo, Portage, Reedsburg, and the Wisconsin Dells all are majority owner-occupied resident households. This reflects not only income differences between communities, but how the built environment has adjusted to market demand. More ownership options are available in these communities - meaning that households who want to purchase homes and enter homeownership have more options for purchase in each of these communities.

54.2%

Owner Households

Regional Tenure Comparisons

ner Households

Renter Households

Owner Households

Renter Households

53.0%

55.9%

Owner Households

Renter Households

Owner Households

Wisconsin Dells Owner Households Owner Households Renter Households

Renter Households Reedsburg

Owner Households Renter Households

Owner Households

47.0%

55.9%

Sauk County

53.0%

55.9%

31.3%

Renter Households

68.7%

Renter Households

68.7%

40.8% 49.9%

49.9%

40.8% 59.2%

.8%

49.9%

useholds

Owner Households

Renter Households

Owner Households

60.1%

59.2%

60.1%

59.2% 49.9%

Renter Households

47.0%

44.1%

31.3%

Portage

44.1%

Renter

Tenure - Lake Chart Title delton

Regional Peer Communities, while part

Baraboo

81% - 100% AMI

Owner Households

Owner Households Renter Households

Renter Households

Owner Households

Renter Households

Owner Households

Owner Households Renter Households

Renter Households

Owner Households

Renter Households

Village of Lake Delton

Renter Households

Cost Burden >30% to <=50%

Cost Burden >50%

Housing Stress - Tenure

Renter Households Renter Households

st Burden <=30%

Owner Households Owner Households

Owner Households

CostBurden Burden <=30% Burden >30% to <=50% Cost Burden >30%<=30% to <=50% Cost Cost Burden >50% Cost Burden >30% to <=50% Cost Cost Burden >50%

Cost Burden >

Housing Stress is measured by cost Owner Households Rental Housing Stress

Municipality

% of Renter Households with Cost Burden

# of Cost Burdened Renter Households

Lake Delton

40.9%

325

Baraboo

44.3%

989

Reedsburg

49.0%

730

Wisconsin Dells

24.0%

113

Portage

50.9%

945

Sauk County

40.7%

burden, which reflects the amount of income a household pays for total housing costs. Generally, municipalities with larger stock of rental housing and increased vacancies would show lowered housing costs for consumers and decreasing rates of cost burden (except for extremely fast-growing communities). This is true in Lake Delton, as overall rates of rental housing cost burden are low compared to regional peer communities. This also represents, however, the large share of high-income households renting within the Lake Delton housing market. Higher-income households â&#x20AC;&#x153;renting downâ&#x20AC;? within the market (spending less than 30% income toward rent) skew these figures by spending significantly a significantly smaller percentage of income on market rents than lower-income households.

Cost Burden <=30% 3,240

Cost Burden >30% to <=50%

Cost Burden >50

Cost burden is much more prevalent in Lake Delton for renter than owner households, indicative of generally higher owner income, tight lending standards, and other market forces.

Rental Housing Stress 2020 Housing Study

Rental Stress by Income

where high income households rent units that are more appropriately priced to lower-income households, decreasing affordable options to households in lower income brackets.

Rental Stress in the Village exists almost

entirely within low-income Village households. There are practically no renter households over 80% AMI that experience cost burden. Due to the structure of the rental market in the Village, there are gaps in unit availability at appropriate price points to serve specific incomes in the market.

Rental Unit Mismatch

Overall, there is a lack of approximately 25 units that would serve extremely low income Income households (rental cost $644 per month or less). Range There is also a significant housing gap at the top of the rental housing market, with an undersupply 0% - 30% AMI of market-rate units for households earning over 80% AMI (rental housing cost $1,410 per month or 31% - 50% AMI more). While choice in the market is important, Chart Title and many higher income households value 51% - 80% AMI affordability (spending less than 30%), this does not display true unit for unit demand for high cost > 81% AMI housing. It does however create market tension,

Rental Renter Units Households Available

Over-/ UnderSupply

185

135

-50

165

205

135

365

230

315

-225

Chart Title 180

Cost Burden (income) 130

160

110

140

120

130 110

100

3020 0

< 30% AMI

30 30 < 30% AMI

30 31% - 50% AMI

31% - 50% AMI

25 51% - 80% AMI

81% - 100% AMI

51% - 80% AMI

Cost burden > 30% Cost burden > 30%

Cost burden > 50%> Cost burden

81% - 100% AMI

50%

> 100% AMI

Village of Lake Delton

69%

Delton

Levels of Cost Burden

Chart Title

100%

90% 30% 80%

42%

48% 70%

51%

70%

69%

74%

60%

52%

50%

49%

40%

31%

70% 30%

58%

52%

49%

20%

31%

26%

10%

Baraboo Lake Delton

Baraboo

Reedsburg

Cost Income Burden (30%-50% Income Toward Cost Burden (30%-50% Toward Rent)Rent)

Wisconsin Dells

Portage

Sauk County

Severe Cost Burden (>50% Income Toward Rent)

Rates of Renter Cost Burden may

Cost Burdened Renter Households

Municipality

# with Cost Burden (30%-50%)

# with Severe Burden (>50%)

% Severely Cost Burdened

Lake Delton

240

73.8%

Baraboo

684

295

30.1%

Reedsburg

375

340

47.6%

Wisconsin Dells

68.8%

Portage

445

460

50.8%

Sauk County

1,855

1,320

41.8%

be low in Lake Delton overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost Burden in the Village, 74% are severely cost burdened. This rate is much higher than in regional peer communities, only Wisconsin Dells has a similar rate of severe cost burden. While rates of cost burden are low overall, higher income households â&#x20AC;&#x153;renting downâ&#x20AC;? squeezes the housing market, increasing competition for units in the moderate- and middle- market segments. This also indicates a lack of appropriatelypriced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income-restricted and subsidized units that ensure affordability levels not currently provided within the market.

Rental Housing Stress 2020 Housing Study

Rental Unit Consumption

Higher-income households (making over 100% AMI) rent nearly 40% of rental housing units that would be affordable to households earning 51% - 80% AMI, 15% of housing units that would be affordable to households earning 31% - 50% AMI, and nearly 20% of housing units that would be affordable to the lowest-income residents (30% AMI or less). While this means access to affordable housing options is readily available for these households, it also means that lower-income households (which are less competitive in the rental market) must spend more to secure housing, and often housing that is significantly above their affordability limit.

Which households are over- or

underconsuming housing is tracked annually by both the US Census Bureau and the Department of Housing and Urban Development (HUD). While we know based on general over- and undersupply that higher-income households have to be renting down within the market in order to secure housing, we can also match which income-range units they are actually occupying. In Lake Delton, low-income households (80% AMI or under) are not renting any higher-end market rate units. This could be due to income requirements enforced by property management to secure higher priced rental units, barriers due to increasingly high security deposits, or many other reasons. This also results in generally low-levels of cost burden for the Village overall, disguising the true level of need that exists for many households in the community.

Chart Title

For example, nearly 15% of rental units priced to be affordable to a household making between 51% and 80% AMI are rented by the lowest-income households in the Village, as well as over 35% of rental units priced to be affordable to a household between 31% and 50% AMI.

130 Chart Title

Rental Unit Consumption110 (by income)

130

Units

110

30 30

10%

20%

30%

40%

30% AMI 31% - 50% AMI - 80% AMI - 30% AMI 31% -51% 50% AMI Household Income 0% - 0%

40%

50%

60%

50%

70%

81% - 100% AMI AMI>100% AMI 51% - 80% 81% -

60%

80%

100% AMI

90%

70%

100%

>100% AMIof Lake Village

80%

Delton

Rental Unit Household Occupancy Households by Income Rental Units

0% - 30%

31% - 50%

51% - 80%

81% - 100%

Affordable at 30%

Affordable 31% - 50%

Affordable 51% - 80%

135

Affordable at >80%

While Unit Choice is important to the

freedom and desirability of the local housing market, more options at appropriate price points can help guide consumers into more appropriately priced units that ease burden at all levels. Households that would potentially move to Lake Deltonâ&#x20AC;&#x2122;s as identified in the Community Survey a need for both affordability and availability of units - as well as a need for increased types of housing options in the community. Renter households in the community survey identified housing affordability as their main concern in the Village - with nearly 45% of respondents indicating this as a negative impact on choosing housing in the community. This was followed closely by housing availability and housing type options - all with a much larger negative than positive or neutral indicated impact.

>100%

These have been longstanding concerns of residents in the Village. Greater than 60% of both salaried and hourly employees, as well as nearly 70% of employers indicated in survey responses that adequate housing has become more difficult to find, or has always been difficult to find in the community. This represents a large group of invested residents and potential residents who are seeking more choices in the housing market, across all price points, for both ownership and rental units. The survey indicates a varied mix of rental housing unit types, with between 25% and 35% of respondents living each in single-unit detached, 2-4 unit, of 5-19 unit buildings. However, there is less choice within the community and more options are needed. Rental housing should be priced appropriately for the workforce of the community, largely hourly employees - of whom 64% are renter households compared to 22% of salaried employee households.

Rental Unit Consumption 2020 Housing Study

Rental Unit Types Residential Rental Properties

H ß 23 Trout Rd

E Hiawatha

Sauk County, WI

s in Rive r

Lake Sho re Dr

Clara Ave

12 / 2

Lake Delton Housing Study

lto

Birchwood Rd

Berry Rd

La Wisconsin Dells Pkwy

Lake Delton Other Municipality

A ß

Residential Property

Condo

A lc

ll s De

Duplex

S wy Pk

Hillman Rd

12 / 2

Multi-Family Residential Mobile Home

Wisc

onsin Dells Pk wy S

Dell Creek

in on s sc Wi

urritt Ave SB

an Dr

Single Family Residential

Xanadu Rd

+ * ,

Canyo

Munroe Ave

de D

n Rd

Hillsi

Bu nker

Park Dr

+ * ,

a Bl

Mixed Use

T ß

Ishnala R

Gasser Rd

Kalahari Dr

+ * ,

Busse Ln

Bunker Dr

Mi rro

12 / 2 Fern Dell Rd

Hastings Rd

Fern Dell Rd

Moon Rd

BD ß

Unit types are important to provide choice

in the housing market that meets preferences of residents and potential residents of the Village. Of note, there are no rental units per the U.S. Census that are single-unit attached (townhouse) units, nor units in 50+ unit buildings. 67% of the rental units in the Village are either single-unit detached homes or in 5-19 unit buildings. Although these comprise the majority of rental units in the Village, they house different household types. Single-unit detached homes tend to have higher rents (and therefore are less affordable to lower-income households), while 5-19 unit building provide more affordable options. 30

0.2

0.4 Miles

Rental Units - Type Unit Type

Number of Units

% of Total Rental Units

Rental as % of Unit Type

1-unit detached 232

30.9%

39.5%

2-4 unit

105

14.0%

100%

5-19 unit

272

36.2%

88.3%

20-49 unit

108

14.4%

76.1%

Mobile home

4.5%

11.4%

Village of Lake Delton

Affordability Trends $1,200

$1,000

General Measures and trends

in affordability are a contrast of current incomes and current costs. One measure $1,200 130 median renter $800or not the is whether household can afford the median rental unit, which is a measure of choice. If yes,110 $1,000 50% or more of all rental units would be $600 available to that household. If no, choice is 130 $800 restricted and market supply and demand are unbalanced. Displayed as a rolling average$400 to smooth data, the median rental $600 unit became unaffordable to the median renter household from 2016-2017. $400

Rental Cost & Income $1,200

$1,000

130

$800

110

$600

$400

$200 of unit

Ranges rental costs in the Village show that most units rent between $750$200 $799 per month (including utilities), and there are scarce units priced less than $500 $30 per month. $800 in 30 or more than $1,250 $30 rental costs per month is the affordability limit for a household earning $32,000 annually, and is the high end of the most common rental amount.

$200

30 30

Lake Delton Lake Delton Median GrossMedian RentGross Rent

Lake AďŹ&#x20AC;ordable Delton Median to Gross Renter Rent Household Rent AďŹ&#x20AC;ordable to Median Renter RentRent AďŹ&#x20AC;ordable toMedian Median Renter Household

Gross Rent 180

Current Unit Rents 160 140

130 120

110

Units

100 80 60 40 20

2020 Housing Study

Gross Rent

Chart Title $1,200

Rental Unit Cost $1,000

130 $800

110 $600

$400

$200

30 $0

1-Bedroom

2-Bedroom US Census

3-Bedroom

Study Survey

Renter Households in the Village currently

pay about $700-$800 per month for a 1-bedroom unit (average), and between $850-$950 per month for 2-bedroom units (average). Within the market, however, there is significant variation in unit costs expected with variance in age of construction, location, and amenities. The property management survey administered through this process identified managers of 1- and 2-bedroom units, and costs for those units ranged from $700 per month up to $1,130 per month. This range represents rates which would generally be affordable to households earning between $28,000 and $45,000 annually. These incomes reprent 27% of Lake Deltonâ&#x20AC;&#x2122;s renter households, with 40% earning below this amount (likely to be cost burdened) and 33% earning above this amount (likely to pay less than 30% income toward housing).

Monthly Rental Estimates Income

Census

Survey Low

Survey High

1 Bedroom

$761

$700

$900

2 Bedroom

$856

$820

$1,130

3+ Bedroom

$764

All Bedrooms

$762

Rental Housing Cost 32

Village of Lake Delton

Vacancies in the rental market are important

to continued access and affordability. Healthy vacancy rates are considered to be between 5% and 7% of all units. This falls within an assumed vacancy for development, allows turnover and growth in population, keeps market rental increases to appropriate amounts, and provides a general balance between landlord and tenant. The U.S. Census Bureau does not provide accurate numbers for rental vacancy in the Village. Instead, certain property managers volunteered to self-report numbers of units and vacancies for the Village and larger region. Respondents represented nearly 50% of all the rental units in the Village, although skewed toward larger property management companies operating smaller units. There were no reported vacancies in this sample, indicating extremely lo vacancy rates for the Village, likely under 5%.

Rental Unit Vacancy Income

Units

Vacant

Total

1-bedroom

145

2-bedroom

225

3-bedroom

Total

370

Smaller landlords and property management companies operating larger single-family homes do not appear to have much higher vacancy. Although no data is available, only 5 rental units available for immediate move-in were observed in March 2020 on rental listing aggregator websites, and all were in multi-unit buildings. Sauk County

12%

Sauk County Vacancy Rate 10%

130

Healthy Range 6%

Increasing Supply and increasing

The same property managers were asked to supply the total number of units and vacancies offered in the Lake Delton region, whether or not those units were within municipal boundaries. In total for numbers supplied for units within the larger region, there were 15 total vacancies out of 1,556 units. This represents a vacancy rate of 0.96% for managed units in the larger area. At the more accurate county level, the U.S. Census has shown a steadily decreasing vacancy rate since 2010 - one below a healthy range.

vacancy of rental units in the community would be healthy for the housing market. Doing so would allow potential residents and employees the opportunity to move into the community, allow healthy turnover of units within the market providing more choices of housing for current residents, and allow residents to self-select into housing of both an appropriate size and type.

Vacancy Rate 2020 Housing Study

Rental Housing Size

Chart Title 0.8% 7.0%

Household Size is important to the housing

market, as larger households require units with more bedrooms so as not to be overcrowded (more then 1 person per room). While renter households 130 Lake Delton generally have smaller household sizes, growth trends have shown increasing household sizes generally over recent years. This is consistent with data from the Community Survey, in which 42% of respondents indicated having children in the home. For the rental market, especially for hourly 130 employees, maintaining access to 3+ bedroom units will be important in the coming years to encourage employees to become residents.

Chart Title Employees - # of Children 0.8% 19.4%

19.4%

110

Overall in the Village, 25% of all rental units have 3- or more bedrooms. However, with increasing household size and many families having children, this submarket will remain an important relative component of new development in the Village. Per most recently available Census30 data, there are more renter households with 3+ person families (141) than owner households (110). Currently there30are enough units for resident households, but expanding supply can work to attract new resident families of all incomes.

Rental Units by Bedroom Size

7.0%

110

58.1%

14.7% 58.1%

14.7%

25 30

No Children

1 Child

No Children

1 Child

2 Children 2 Children

3 Children 3 Children

4 Children 4 Children

Number of Rental Units

250

200

130 110 150

100

EďŹ&#x192;ciency

1-Bedroom

2-Bedroom

3-Bedroom

Village 4-Bedroom of Lake Delton

Rental Unit Age

Multi-Family Dwellings by age of home

ßH

n co

s in R iv e r

Sauk County, WI n

Lake Shore

B er ry

12 / 2

+ , *

Lake Delton Housing Study

23 a E Hia w

Birchwood Rd

Canyon

s as

Dr ide Hills

La Park Dr

Clara Ave

Wisconsin Dells P kw y

Trout Rd

Bunker Rd

Lake Delton

ßA

ßP Munroe Ave

23 Alc

1926 - 1950

n sc o Wi

1951 - 1975

sin s Del P kw

1976 - 2000

Hillman Rd

2001 - 2019

isconsin Dells Pkwy S

De l l C reek

1850 - 1900

12 / 2

an Dr

urritt Ave SB

Xanadu Rd

+ , *

Other Municipality Duplexes/Multi/Mobile Homes/Mixed Use

Age of Home Unknown

ßT

Kalahari Dr

+ , *

Bunker Dr

Busse Ln

Mir

r or

Ishnala R d

Gasser Rd

Data Sources: Municipal Boundary: Sauk County (2019) Roads: Sauk County (2019) Age of Homes: Associated Appraisal

12 / 2 Fern Dell Rd Hastings Rd

Fern Dell Rd

Moon Rd

BD ß

Lake Delton’s rental market consists of a

variety of housing types. For multifamily units (the most common rental type), there are varying ages of construction. The majority of multifamily units in the Village were constructed between 1980 - 2000. There are smaller structures built between 1926 1950, and larger structures constructed after 2000. Older units are commonly more affordable to tenants, providing affordable housing opportunity, while newer units are often rented at higher price points.

2020 Housing Study

0.2

0.4 Miles

Older units in the Village that are rental units have limited risk of contaminants such as leadbased paint, though other health concerns come with age and compounded disrepair. However, many renters in the Village are satisfied with the overall quality of rental housing - over 45% of survey respondents indicated a positive view of the quality of rental units, compared to 32% who indicated a negative view of rental unit quality. Housing quality due to age or other factors was the least listed concern for renters, well behind affordability and availability of units. 35

1-Bedroom Rental (New Construction) Typical 1-Bedroom Construction & Land Cost = $125,000 Equity to Cost Ratio

20%

Loan to Cost Ratio

Required Equity

$25,000

Mortgage Loan

Annual Pre-tax Distribution Rate 10%

Mortgage Interest Rate

Cash Payments for Equity

Debt Service

$2,500

Net Operating Income

$8,750

Operating Expenses

$2,500

Real Estate Taxes

$2,000

Replacement Reserve

$300

Effective Gross Revenue

$13,350

Vacancy (5% required assumption)

$675

Gross Potential Income

$14,225

Breakeven Annual Rent

$14,225

Breakeven Monthly Rent

$1,185

There is a Need for new construction in

the Village that serves low- and high-income earners alike. High-income earning households can afford rents associated with higher cost of new-construction, and developers can market increased costs through increased amenities. However, lower-income households largely cannot afford new construction, even assuming limited to no profit from development.

80% $100,000 5% $6,250

Construction cost and the requisite rents to cover debt service, reserves, and operating expenses even under a conservative example necessitate rents that are unaffordable for low-income households. To ensure expanded opportunities for all members of the workforce in Lake Delton, including hourly employees, subsidy is needed to offset construction costs to make more units affordable.

Example - Construction Cost 36

Village of Lake Delton

Example - Affordability Persons in Household

Monthly Housing Cost Limit

Sauk County

$1,763 (100% AMI)

Extremely Low Income (30% AMI)

$371

$424

$533

$644

$754

$865

$975

$1,086

Very Low Income (50% AMI)

$618

$705

$794

$881

$953

$1,023

$1,094

$1,164

Low Income (80% AMI)

$988

$1,129

$1,270

$1,410

$1,524

$1,636

$1,749

$1,861

Households marked by red in the Housing Affordability Limit table above would not be able to afford the 1-bedroom new construction rental unit in the example.

2020 Housing Study

Page intentionally left blank.

Village of Lake Delton

Ownership Market Demand & Supply

2020 Housing Study

Ownership Market

Residential Properties

H ß

Birchwood Rd

M unroe Ave

Lake Delton yon Can

Other Municipality

Bunker Rd

P ß

Park Dr

Wisconsin Dells Pkwy

Owner Occupied Property

A ß

Rental Property

/ 2

S Burritt Ave

lto

ide Hil ls

e ak

Sauk County, WI

s in Rive r

Clara Ave

Berr y

+ * ,

12 / 2

Lake Delton Housing Study

Hi a watha D r

Lake Shore Dr

Trout Rd

sc Wi si n on l ls De

Xanadu Rd

w Pk

Hillman Rd

Alcan Dr

onsin Dells Pk wy S

Wisc

D ell Cr e e

+ * ,

ßT

Ishnala

Gasser Rd

+ * ,

Bunker Dr

Busse Ln

Mi rro

Kal a hari

12 / 2 Fern Dell Rd

Hastings Rd

Fern Dell Rd

Moon Rd

BD ß

The Majority of Residential Parcels

in the Village are owner-occupied, even though the primary tenure type is rental. This is due to the large number of multi-unit residential rental buildings that house the majority of the population. Central Lake Delton shows a mix of rental and owner-occupied housing, although areas surrounding the Lake as well as platted subdivisions are largely owner-occupied.

0.2

While some of the owner-occupied units on the map are vacation or secondary homes, data presented in this chapter is largely focused on year-round residents of the Village. This is structured to better display opportunity available to current and prospective primary residents, and outline barriers, obstacles, and opportunities in the local ownership market as separate from the tourist or second-home market.

Village of Lake Delton

0.4 Miles

Income of Residents is central to housing affordability. For ownership opportunities, this largely

Persons in Household

Median Family Income

Sauk County

$70,500 (100% AMI)

Extremely Low Income (30% AMI)

$14,850

$16,950

$21,330

$25,750

$30,170

$34,590

Very Low Income (50% AMI)

$24,700

$28,200

$31,750

$35,250

$38,100

$40,900

Low Income (80% AMI)

$39,500

$45,150

$50,800

$56,400

$60,950

$65,450

Purchase Limits based on the incomes above illustrate the general amount a household could

Persons in Household

Purchase Limit

Sauk County

$236,880 (100% AMI)

Extremely Low Income (30% AMI)

$49,846

$56,952

$76,788

$86,520

$101,371

$116,222

Very Low Income (50% AMI)

$82,992

$94,752

$106,680

$118,440

$128,016

$137,424

Low Income (80% AMI)

$132,720

$151,704

$170,688

$189,504

$204,792

$219,912

Affordability Limits in the Ownership Market 2020 Housing Study

200

Tenure in the Housing Market 100

0% - 30% AMI

31% - 50% AMI

51% - 80% AMI Owner

Tenure Impacts Ownership Markets as

The lack of ownership housing stock available to current and prospective residents is significantly less (as a percentage) than in regional peer communities. More units in the ownership market often means a more active market: more listings, more turnover, and more sales. The average homeowner stays in a home for 7 years after purchase, but often longer in tighter markets with less inventory, as there are less options for them to â&#x20AC;&#x153;upgradeâ&#x20AC;? their housing or move to a more preferable unit in the market. Tight markets also increase competition, and sales prices rise due to comptetion between purchasers - creating additional layers of unaffordability.

45.8% 54.2%

Owner Households

Regional Tenure Comparisons

ner Households

Renter Households

Owner Households

Renter Households

53.0%

55.9%

Owner Households

Renter Households

Owner Households

Wisconsin Dells Owner Households Owner Households Renter Households

Renter Households Reedsburg

Owner Households Renter Households

Owner Households

47.0%

55.9%

Sauk County

53.0%

55.9%

31.3%

Renter Households

68.7%

Renter Households

68.7%

40.8% 49.9%

49.9%

40.8% 59.2%

.8%

49.9%

useholds

Owner Households

Renter Households

Owner Households

60.1%

59.2%

60.1%

59.2% 49.9%

Renter Households

47.0%

44.1%

31.3%

Portage

44.1%

Renter

Tenure - Lake Chart Title delton

well as rental markets. This is largely apparent in limits on the total amount of ownership housing stock in the inventory. It is uncommon for single-unit rental properties to reach the open market, and most new homeowners do not purchase 2+ unit buildings for their primary residence.

Baraboo

81% - 100% AMI

Owner Households

Owner Households Renter Households

Renter Households

Owner Households

Renter Households

Owner Households

Owner Households Renter Households

Renter Households

Owner Households

Renter Households

Village of Lake Delton

Renter Households

Income / Household Distribution

Tenure by Income 700

600

500

400

300

200

100

0% - 30% AMI

31% - 50% AMI

51% - 80% AMI Owner

81% - 100% AMI

> 100% AMI

Renter

The Majority of owner-occupied homes Chart Title Households, Income & Tenure in the Village are occupied by households that are above the median income for the County. This is not an uncommon occurance, as increased income opens up increased ownership opportunities and eases costs associated with homeownership (downpayment, taxes, etc.). While significant percentages of low-income residents (< 80% AMI) are renters, 35% are still homeowners. Often these populations are aging homeowners who have entered retirement and seen significant loss in income,54.2% which brings new challenges. Although these owners may own their home free and clear, they often struggle with property tax payments, upkeep, and other factors of homeownership that require continual maintnance funds or physical requirements that agining populations stuggle to meet.

Owner Households

Income

Renters

Owners

0% - 30% AMI

185

230

31% - 50% AMI

165

255

51% - 80% AMI

135

125

260

81% - 100% AMI

105

>100% AMI

265

365

630

Total

795

675

1475

45.8%

Total

Renter Households

Tenure by Income 2020 Housing Study

Cost Burden >30% to <=50%

Cost Burden >50%

Housing Stress - Tenure

Renter Households Renter Households

st Burden <=30%

Owner Households Owner Households

Owner Households

CostBurden Burden <=30% Burden >30% to <=50% Cost Burden >30%<=30% to <=50% Cost Cost Burden >50% Cost Burden >30% to <=50% Cost Cost Burden >50%

Cost Burden >

Housing Stress is measured by cost Owner Households Ownership Housing Stress

Municipality

% of Owner Households with Cost Burden

# of Cost Burdened Owner Households

Lake Delton

20.0%

135

Baraboo

23.3%

665

Reedsburg

20.5%

460

Wisconsin Dells

26.0%

168

Portage

13.8%

Sauk County

22.1%

burden, which reflects the amount of income a household pays for total housing costs. While the rental housing market in the Village is marked by high levels of cost burden (> 30% income toward rental costs), the ownership housing market has significantly reduced levels of burden in comparison. Further - for those households in the ownership market who do experience cost burden, they are much less likely to experience severe cost burden (> 50% income toward housing costs). While housing is a necessity, so all households must participate in the market in some aspect, owner households have the financial resources available to choose to purchase their housing.

An effect of that choice is that in order to qualify, potential owner households must meet Cost Burden <=30% Coststandards Burden >30% <=50%of the Cost Burden >50 underwriting - antoaspect market 3,825 that drastically reduces the cost risk associated with owning, as borrowers are more likely to have higher incomes, increased access to credit, etc.. 295

Owner Housing Stress 44

Village of Lake Delton

Owner Stress by Income Owner Stress in the Village exists almost

entirely within low-income Village households (85%). Important to consider is that for households above this amount - 100% AMI or greater, cost burden is less impactful than for low-income households. Even accounting for increased housing costs, costs associated with fixed-cost goods (childcare, healthcare, food, etc.) allow more flexibility within a monthly budget to allow some levels of cost burden while maintaining financial stability. For lowerincome households, there is less room for increased costs or unexpected expenditure.

Ownership Unit Mismatch Ownership Owner Units Income Range Households Available

Chart Title

In ownership unit mismatch, homes that would be affordable to even low-income households are occupied by higher-income households, further decreasing observed rates of cost burden. This indicates a need for increased ownership opportunities, as homes that would otherwise be affordable 20 to lower-income households are not available to them in a competitive market.

Over-/ UnderSupply

0% - 50% AMI

135

320

185

51% - 80% AMI

125

180

81% - 100% AMI

> 100% AMI

365

120

-245

Chart Title 60

Cost Burden (income) 50

20 40

30 10

31% - 50% AMI

< 30% AMI

2020 Housing Study

31% - 50% AMI

51% - 80% AMI 51% - 80% AMI

Cost Burden > 30%

81% - 100% AMI

Cost Burden > 50%

81% - 100% AMI

> 100% AMI

33%

32%

34% 46%

Levels of Cost Burden

Chart Title

100%

39%

47%

90% 33%

80%

32%

34% 46%

39%

47%

70%

25 60% 67%

50%

40%

54%

67%

30%

61%

53% 68%

66%

54%

61%

53%

20%

10%

Lake Delton

68%

66%

Lake Delton

Baraboo

Reedsburg Reedsburg

Burden (30% - 50% Income Housing Toward Housing Cost) Cost Burden (30%Cost - 50% Income Toward Cost)

Wisconsin Wisconsin Dells

Dells

Portage

Portage Sauk County

Severe CostCost Burden (> 50% Income Toward Housing Cost) Severe Burden (> 50% Income Toward

Sauk County

Housing Cost)

Cost Burdened Owner Households

Municipality

# with Cost Burden (30%-50%)

# with Severe Burden (>50%)

% Severely Cost Burdened

Lake Delton

33%

Baraboo

345

290

46%

Reedsburg

255

130

34%

Wisconsin Dells

47%

Portage

200

32%

Sauk County

2,235

1,440

39%

Rates of Owner Cost Burden that assess severe burden as a percentage of total burden are lower in Lake Delton than in all peer communities except for Portage. This has to do with many factors - including homeowners being higher-income as a percentage, lower housing costs, and the large percentage of homes in Lake Delton that are owned free and clear (without a mortgage). Combined, these factors display relative stability within the ownership market. Those that own their homes find them relatively affordable.

Owner Housing Stress 46

Village of Lake Delton

Owner Unit Consumption Overall, the market is dominated by households earning over 80% AMI. These households are consuming units in the housing market that are very affordable to them - their relative incomes significantly lower housing cost burden, and income shares spent on housing costs are extremely low. While this is beneficial to these households, it does strain the market and ultimately increase sales prices in all housing ranges, from entry-level homes upward.

Which households are over- or

underconsuming housing is tracked annually by both the US Census Bureau and the Department of Housing and Urban Development (HUD). Per HUD data, within the Village the largest share of ownership homes in the market (320 units) should be affordable to households earning about 50% AMI ($35,250 for a family of 4). Of these housing units, about 35% are owned by households that fall into that income category. The remainder are owned by higher-income households, with nearly 45% being owned by households earning above the area median income.

Consistent with insights from the Community Survey and data gathered from community conversations, owners and prospective owners feel that the largest negative aspect to the These homes are extremely affordable to higherhousing market in Lake Delton is housing income households, and provide desirable Chart Title availability, which is followed by affordability. As affordable ownership options for high income the market is restricted, these two concerns are earners. However, it does provide increased inherently connected, and families who choose competition that precludes lower-income earners to live in Lake Delton may purchase housing well from entering the owner housing market. below a price they would be able to afford in the market otherwise in order to live in the Village, while still overpaying for that housing due to limited supply.

130

Chart Title

Ownership Unit Consumption (by income) 110

Units

10%

2020 Housing Study

10%

20%

0% - 30% AMI 0% - 30% AMI

30%

40%

50%

60%

60% 70%

80%

31% - 50% 51% 80% AMI - 100% >AMI 31% - 50% AMIAMI 51% AMI - 80%- AMI 81% AMI - 81% 100% AMI 100% AMI >100% AMI

70%

90%

80%

100%

Ownership Unit Household Occupancy 0% - 30%

31% - 50%

51% - 80%

81% - 100%

Units With a Mortgage

Affordable at 50%

Affordable at 51% - 80%

Affordable at 81% - 100%

Affordable at > 100%

Units Without a Mortgage

Households by Income Ownership Units

Affordable at 50%

100

Affordable at 51% - 80%

Affordable at 81% - 100%

Affordable at > 100%

Disparity in ownership opportunity is apparent

with looking at the distribution of homes, by value, that have a lien on the property. The table above shows the household incomes of occupants of ownership housing both with and without a mortgage, which due to lending standards can generally be thought of as “purchased in the past 15-30 years” for homes with a mortgage and “purchased more than 15-30 years ago” for homes without a mortgage. For units with a mortgage (representing more recent home purchases), 82% were purchased by households earning more than 100% AMI ($70,500

>100%

for a family of 4). However, homeowners > 100% AMI own only 43% of homes without a mortgage. While some of this discrepancy is due to retirement and reduced income for owners who have paid off their homes, the sheer number of homes without a mortgage indicates this is not the sole cause. What this likely represents is a larger shift in unit availability and purchase trends that is moving towards homeowner opportunities in the Village becoming almost exclusively for higher-income households, while tightening lending standards and unit availability has priced out lower-income households that could otherwise afford unit purchase.

Owner Unit Consumption 48

Village of Lake Delton

Spatial Affordability Approximate Market Value of Single Family Residential Properties

H ß

Lake Shore

Lake Delton Housing Study

lto

Birchwood Rd

Berr y

a th a

s in Rive r

E Hi a

P ß

on R Cany

Sauk County, WI

Lake Delton

ßA

Other Municipality

si n on

Less than $118,400

l ls De w Pk

Hillman Rd

$118,400 - $189,504

Wisc

onsin Dells Pk wy S

Dell Creek

Approximate Market Value

sc Wi

urritt Ave SB

Xanadu Rd

+ , *

Hillsi de

12 2 / Dr

M unroe Ave

Bunker Rd

Park Dr

Wisconsin Dells Pkwy

+ , *

Alcan

12 / 2

Clara Ave

Trout Rd

$189,505 - $239,700

$239,700 - $267,900

ßT

Gasser Rd

Ishnala

Greater than $269,700 Kalahari Dr

No Assessed Value

+ , *

Bunker Dr

Busse Ln

Mi rro

e ak

12 / 2 Fern Dell Rd

Hastings Rd

Fern Dell Rd

Moon Rd

BD ß

0.2

0.4 Miles

Approximating Market Value of homes

is accomplished by adding 15% to the assessed value of the property. While this is not a perfect approximation, it estimates price fluctuations driven by demand in a competitive market. This spatial availability of homes by market cost shows where opportunity for affordability exists in the Village’s housing market for residents at different income levels. Even though the opportunity exists for lowerincome households to purchase housing that would be affordable to them, they are often limited by lower downpayments, different loan types, and less overall ability to compete with higher-income households when offering on the same home. 2020 Housing Study

Ownership units Unit Affordability

Low Cost

High Cost

Affordable up to 50% AMI

$118,400

Affordable at 51% - 80% AMI

118,401

$189,504

Affordable at 81% - 100% AMI $189,505

$239,700

Affordable above 100% AMI

$239,701

Affordability Trends General Measures and trends

Year Owner MovedChart Into Title Unit

in homeowner affordability have to do with market conditions in real estate markets and prospective buyer incomes. Looking at the Lake Delton region, home values historically peaked in 2007 before the Great Recession, and saw a corresponding loss in value - though not to the extent of many other areas of the Nation. Both condo and single family units have regained lost value associated with the recession, in 2017 for single-family units and 2019 for condo units. Within the Village, real estate transactions for year-round residents increased in 2010 as tracked by the year the homeowner moved into the unit. Lake Delton has many long-tenured homeowners who have not been active members of the housing market for many years, and whose mortgages have fully amortized since their initial purchase.

1989 or Earlier

1990 to 1999

184

2000 to 2009

162

25 2010 to 2014

197

2015 to 2016

2017 or Later

100

150

200

250

SF and Condo Affordability Single-Unit & Condo Market Value $250,000

$200,000

$150,000

$100,000

$50,000

Single-Unit Detached $300,000

Condominium

12 per. Mov. Avg. (Single-Unit Detached)

Village of 12 per. Mov. Avg. (Condominium)

Lake Delton

$300,000

Single-Unit & Condo Affordability $250,000

$200,000

$150,000

$100,000

$50,000

Single-Unit Detached

Condominium

Low-Income AďŹ&#x20AC;ordability Limit

Median AďŹ&#x20AC;ordability Limit

While Unit Price is an important factor in

housing affordability, so too is household income. Sauk County and Lake Delton experienced rising incomes for residents coming out of the recession - and for a time these income rose at a rate ahed of the real estate market. When single-family and condo units reached the bottom of their market dip in 2014, both were affordable to different sectors of the community. In 2014, the median single-unit home was within the affordability limit of not only the median household, but also within the limit of a household at 80% of the area median income (AMI). Concurrently, households at 50% AMI had seen an increase in incomes so that the median condo unit was nearly an affordable method of homeownership.

Very Low-Income AďŹ&#x20AC;ordability Limit

Since the bottom of the market in 2014 however, house value growth has drastically outpaced income growth for the same period. While the median single-unit home is still affordable to the median household, it has surpassed the affordability limit of an 80% AMI household as of 2017. 50% AMI household income growth closely tracked median condo pricing, yet never came quite within the affordability limit - and the gap has continued to widen. Of note, the appreciation in market value, especially of single-unit homes rose drastically over 2019. Over this timeframe, the market value of the median single family home rose nearly $25,000 in a single year. This rise represents half of the difference between affordability limits for the median family household and a household at 80% of the area median.

Affordability Trends 2020 Housing Study

Affordability Trends Median List Price $300,000 Increasing Sales Prices of houses

in the Village directly impact monthly owner cost and affordability. With a large $250,000 amount of homes owned free and clear, there are many homes in the Village whose housing payments consist solely of taxes and insurance. For new borrowers however, $200,000 appreciation on existing housing as well as costs of new construction place ownership costs into higher brackets (over $1,000 per $150,000 month).

Chart Title Monthly Owner Cost > $1,500

$1,250 - $1,499

132

$1,000 - $1,249

$800 - $999

The median list price of homes in the Lake Delton$100,000 region has incresed steadily since the earliest numbers we have tracked since 2005. Using a 12-month rolling average, house prices peaked in the summer of 2018 for the 15 $50,000 larger housing market area, decreasing over the season of 2018. The median home in the area is still affordable to the median Sauk County household, although sales prices are $0 increasing faster than income and closing the gap.

$600 - $799

$400 - $599

143

$200 - $399

149

< $200

100

120

140

160

$300,000

All Units - Median Affordability $250,000

$200,000

$150,000

$100,000

$50,000

Median List Price

AďŹ&#x20AC;ordable to the Median Households

12 per. Mov. Avg. (Median List Price) Village

of Lake Delton

Bottom-Tier Home Value

Starter Home Value $140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

2005-01 2005-05 2005-09 2006-01 2006-05 2006-09 2007-01 2007-05 2007-09 2008-01 2008-05 2008-09 2009-01 2009-05 2009-09 2010-01 2010-05 2010-09 2011-01 2011-05 2011-09 2012-01 2012-05 2012-09 2013-01 2013-05 2013-09 2014-01 2014-05 2014-09 2015-01 2015-05 2015-09 2016-01 2016-05 2016-09 2017-01 2017-05 2017-09 2018-01 2018-05 2018-09 2019-01 2019-05 2019-09

Median "Bo�om-Tier" Value

Aﬀordable to a Household at 50% AMI

12 per. Mov. Avg. (Median "Bo�om-Tier" Value)

Monthly Sales Listings 200

Lower-Income Households commonly 180

occupy what is referred to as the “starter home” market. This160 is tracked as the “Bottom Tier Home Value” and is the median of the lowest 1/3 (33%) of 140 all home values. These homes followed the same general trend both going into and coming out of 120 the recession - although appreciation follows more closely to condo units in that growth rate in value 100 was more reserved. These houses did display the same value spike in 2019, increasing at a much 80 faster rate than in previous periods. 60

These houses appear to be affordable to residents with incomes40 at or below 50% AMI. However, the houses are not being bought by lower-income households. 20 While 41% of homes in this category without a mortgage are owned by households at or below 50%0 AMI, 100% of homes in the category with a mortgage are owned by households earning over 100% AMI. This indicates a strong need for ownership opportunities at all levels of the cosst spectrum, from low-income opportunities to higher-end new construction.

Occupant Incomes of Houses Affordable to 30% AMI Households Household Income

With Without Mortgage Mortgage

0% - 50% AMI

115

51% - 80% AMI

81% - 100% AMI

> 100% AMI

100

Entry-Level Affordability 2020 Housing Study

House Availability As of September 6, 2019 (the date MLS data was pulled), there were 23 residential (single-unit) homes on the active market. These homes had an average asking price of $347,926, a median asking price of $262,000, and were on the market for an average of 289 days. The average days on market is unusually large, and may be skewed by vacation properties.

Single-Unit Home Sales tracked by the

Multiple listing Service hold similar trends to metrics tracking home value. It is important to note in this data that due to the extremely small sample of homes listed in specific years, data can be skewed based on a small representative sample. For instance, the median single family home in 2011 sold for nearly $40,000 more than the median homes in 2010 and 2012. Years with larger amounts of home sales show a better representation of the market.

5-Year Average Home Sales:

31.4 / year

Home sales for single-unit properties have increased coming out of the recession, and values have risen with increased sales activity. Likely the opposite holds more correct - that with increasing values and market demand, more owner households are choosing to place their homes on the market. Increased activity is a good sign that opportunities to live in the Village are presenting themselves to potential buyers.

5-Year Median Sales Price:

$185,750

Chart Title 45

$250,000

Chart Title

Single Family Home Sales 45

$250,000

$200,000

20 $200,000

20 $150,000

25 $150,000 25

$100,000 $100,000

15 15

20 $50,000 $50,000

0 2005

2006 2005

2007 2006

2008 2007

2009 2008

2009 2010

2010 2011 2011

Home Sales Home Sales

20122012

Median Median SalesSales PricePrice

2013 2013

2014 2014

2015 2015

2016 2016

2 per.Mov. Mov.Avg. Avg. (Median (Median Sales 2 per. SalesPrice) Price)

20172017

2018 2018

0 2019* 2019*

Village of Lake Delton * partial year data

Chart Title 100 Condo / Zero Lot Line Sales

$250,000

$200,000

$150,000

25 $100,000

30 $50,00020

2005

2006

2007

2008

2009

2010

Home Sales

2011

2012

2013

Median Sales Price

2014

2015

2016

2017

2018

2019*

2 per. Mov. Avg. (Median Sales Price)

* partial year data

Condo Unit Sales have been a significantly

higher portion of the sales market year-to-year within the Village than single-unit homes, although condo and zero lot line units did display a more pronounced dip during the great recession. Dependent upon the year, condo and zero lot line (attached unit) listings have also displayed higher median sales prices. While condo sales dropped more dramatically, they displayed relatively more consistent year to year sales prices than homes in the single unit market.

5-Year Average Condo Sales:

59.4 / year

Similar to single-unit homes in the sales market, though more pronounced, condo sales are impacted heavily by the vacation and second home market in data reported by the Multiple Listing Service. As of September 6, 2019 the average asking price of condo units was $236,709 with a median asking price of $190,900,with an average days on market of 168.

5-Year Median Sales Price:

$158,200

House Availability 2020 Housing Study

Mortgage Status

15%

27% 20 %

Age of Householders is one of the

aspects that impacts mortgage status. While the average householder nationally remains in their home for 7 years, many members of the community purchase homes to age into them, providing 25 consistent shelter for long periods of time. As shown earlier, the Village of Lake Delton has an unusually high number of owner households without a mortgage on their property. This is partially due to 71% of all owner-occupied homes being owned by residents over the age of 55. Many of these households will 15 choose to age-in-place, while some will require other housing options in the community as they continue to age. The Village should take into consideration plans to best serve these community members over the next 20-30 years as more residents continue to age into this range.

49%

Mortgage Status

15% 27% 20

14%

30 25

Chart Title

44%

35 or Under

35 to 54

35 or Under

34%

14%

Ownership market - Age

34%

37%

35 to 54

55 to 74 55 to 74

75 or Over

34%

37%

Chart Title

100%

90% 34%

80% 49%

34%

37%

70%

60%

66%

50%

51%

66%

30%

63%

40%

66%

63%

51%

66%

63%

66%

63%

20%

15 10%

Lake Delton

Baraboo

Lake Delton

Baraboo

Reedsburg

With a Mortgage With a Mortgage

Wisconsin Dells

Without a Mortgage Without a Mortgage

Portage

Sauk County

Village of Lake Delton

Ownership Unit Types Residential Owner Occupied Properties

H ß 23 Trout Rd

Clara Ave

Lake Shore Dr

co is r

Sauk County, WI

Birchwood Rd

lto

Berr y

ath

s in Rive r

E Hi a w

Lake Delton Housing Study

12 / 2

P ß M unroe Ave

Hillsi de

n Rd

Residential Property

yo Can

Bunker Rd

Single Family Residential

A ß

Condo Duplex

12 / 2

Multi-Family Residential

sc Wi

S Burritt Ave

+ * ,

Park Dr

Wisconsin Dells Pkwy

si n on

Mobile Home

l ls De

Xanadu Rd Dr

w Pk

Mixed Use

Hillman Rd

Alcan

Lake Delton

onsin Dells Pk wy S

Wisc

D ell Cr e e

+ * ,

Other Municipality

T ß

Ishnala

Gasser Rd

+ * ,

Bunker Dr

Busse Ln

Mi rro

Kal a hari

12 / 2 Fern Dell Rd Hastings Rd

Fern Dell Rd

Moon Rd

BD ß

Ownership Unit Type Distribution

across the Village shows that the majority of owner households live in single unit detached homes, followed by mobile homes. Together, these two unit types make up 90% of all ownership unit types. These factors also contribute to the relatively small number of homes without a mortgage. Financing for mobile home units are not subject to the same requirements as more permanent housing types, and do not qualify as a traditional “mortgage” financing. However, the way data is reported by the Census considers any mobile home with an installment loan balance remaining to be “with a mortgage”, even if the land the unit is on is leased. 2020 Housing Study

0.2

0.4 Miles

Ownership Units - Type Unit Type

Number of Units

% of Total Owner Occupied

Owner as % of Unit Type

1-unit detached 356

51.3%

60.5%

2-4 unit

5-19 unit

5.2%

11.7%

20-49 unit

4.9%

23.9%

Mobile home

263

38.2%

88.6%

Ownership Housing Size

Chart Title 0.8%

7.0%

The Most Common bedroom size for owner-

Chart Title

Employees - # of Children

occupied housing in the Village is in 3-bedroom units, followed by 2-bedroom units and 4+ 130bedroom units. Ownership housing often has a larger size (more bedrooms) than rental units, and is a component of the preference for families in commonly seeking out ownership housing units rather than rental. 42% of emplyees in the Community Survey indicated130they have at least 1 child in the home, and attracting employees to meet Village growth should consider a mix of unit sizes for both households with and without children to increase affordable options at all levels.

19.4%

0.8%

7.0%

110

19.4%

110

58.1%

14.7%

Mobile homes likely make up the majority of ownership housing units that are listed as efficiency, 1-bedroom, and 2-bedroom units. While larger units are an important part of new construction unit mix, smaller non-mobile home ownership 30opportunities that are 1- to 2-bedroom units are an important entry point into the housing market for many families, 30 especially those without children and households that are currently at lower incomes.

58.1%

14.7%

25 30

No Children

1 Child

No Children

1 Child

2 Children 2 Children

3 Children 3 Children

4 Children 4 Children

Number of Ownership Units

Rental Units by Bedroom Size 350

300

20 250

200

25 150

100

15 50

EďŹ&#x192;ciency

1-Bedroom

2-Bedroom

3-Bedroom

Village of Lake Delton 4-Bedroom

Other Populations Demand & Supply

2020 Housing Study

Chart Title 120

Homeless Students 98

100

80 71

60 48

28 20

Series1

3 per. Mov. Avg. (Series1)

Youth Homelessness is tracked at a Nighttime Residence - 2019

family level by school districts in Wisconsin. Different than traditional measures of homelessness which look at individuals both unsheltered and in transitional or emergency shelter, youth homelessness is a measure of housing instability. The definition of homelessness as tracked by educational institutions includes students who lack a fixed, permanent nighttime residence. While these students are often not in the shelter system, they have an unknown place of residence on a nightly basis - often staying in hotels on a temporary or permanent basis, or â&#x20AC;&#x153;doubling upâ&#x20AC;? with other families temporarily.

2019

100 90

80 70 60 50

2019

40 30 20 9

10 0

Doubled Up

Hotel/motel

The Wisconsin Dells School District collects this information annually and reports to the State Department of Public Instruction. Homeless students in the District was at a 12-year low in 2014, but quickly rose to peak in 2017. This is a good indicator of tight housing markets - as housing instability, especially inability to find/ afford rental units often forces individuals to find shorter-term options for their families. This is often temporary until more secure housing is located.

Homelessness 60

Village of Lake Delton

16 16

Homelessness 14

14 13 12 12

Homeless Unit Programs - After Hours

10 10

Often, homeless individuals and families without shelter are identified by local law enforcement officials.

Traditional Measures and counts of the

homeless population are accomplished through the annual Point in Time count, administered in Wisconsin on one night in both January and 8 July. This count sends out volunteers from local Continuum of Care (CoC) organizations to count all homeless individuals in known locations, both sheltered and unsheltered. The most recently available data from the January 2018 PIT indicates that 6 in the Central CoC, 25 total individuals were identified as experiencing homelessness. This includes 13 persons in 4 families, 8 individuals, and 4 youth aged 18-24.

8 In Lake Delton, persons experiencing homelessness identified by enforcement are issued a motel8 voucher or a bus ticket, dependent upon the situation. Their information is then passed on to the Central Wisconsin Community Action Council 6 (CWCAC) so they may be placed into coordinated entry systems and possible 6 resources can be identified.

The Wisconsin Dells Police Department also allows homeless individuals to sleep on a bench in their lobby.

4 4

3 3

Point-In-Time Count 16

15 14

0 12

Households

People Families

Households

Families

People

Individuals

People Chronically Homeless

Individuals 2018

Chronically Homeless 6

2018 4

2017

2 1

Households

2020 Housing Study

People

Families

Sheltered Individuals

Chronically Homeless

People

Sheltered 18-24 Youth

2018

2017

Aging Populations The Community Basics section of this plan detailed expected population increases for senior populations in the Village. In addition, growth in population aged 35 and older often sees an accompanying increase in senior populations as persons aged 35-54 often have parents who will locate closer to their children for care as they age into more intensive services and care.

Senior Households are anticipated to

have the largest percentage growth through 2040. Many are current homeowners, and some will require different accommodations, specialized housing, or programming to assist aging-in-place. Senior housing generally refers to the combination of services and housing that allow seniors to continue to live comfortably. This ranges from continuing to live in their own home with virtually no services, townhomes and apartments that offer the ability to â&#x20AC;&#x153;downsizeâ&#x20AC;? living quarters, specialized housing units with limited services, and different types of assisted living facilities.

As varying levels of services are included with different types of housing for aging populations, typical affordability standards do not apply. Often senior households will pay up to 50% of their income for market rate senior housing, up to 90% of their income for specialized and assisted living, often funded in part through the sale of a home they owned. Many households age 62+ in the Village are still homeowners, who have not yet sold homes to fund other housing or services. Over the next 15 years, 370 residents will age into the 80+ age category, and may look to sell their housing for other living options.

Generally, independent-living senior facilities attract residents age 65 and older, while more specialized facilities (assisted living, etc.) attract residents who are age 80 and over and need assistance with daily living activities.

180

62+200Household Income and Tenure 180

180

160

140

120

70 55

100

40 25 20

< 30% AMI

0 31% - 50% AMI

31% - 50% AMI

51% - 80% AMI 51% - 80% AMI

Owner Owner

Renter Renter

0 81% - 100% AMI

81% - 100% AMI

> 100% AMI

Village of Lake Delton

> 100% A

Chart Title

119

180

119

55+ Detailed Categories

164 160

140

119

120

119

100

52 80

61 52

29 23

55 to 59

60 to 64

65 to 74

60 to 64

65 to 74

75 to 84

85 and Over

Owner Owner Renter Renter

Many Aging Households will be able

to use funds from home sales for other housing options. While home value increases make it more difficult for lower-income households to enter the housing market, it also means that senior homeowners have access to extra cash through the rapid appreciation of homes, and will have more funds available to ensure care as they continue to age. Assuming that a senior household owns their home free and clear, and their home sells for the 2019 median estimated value of $218,610, they would be able to generate an additional $4,110 in annual income from a 2% interest producing account ($342.50 per month) to supplement housing costs. Lake Delton’s current mill rate signifies an additional $4,110 annually they would have already been paying for housing cost, which brings their monthly total housing allowance to $685 without increasing share of income spent on housing.

Importantly, many of the households who might otherwise have sold their home during the past decade may have delayed plans for other housing options due to decreased housing values associated with the recession. With increases in home values, many of these households may be more interested in sale of their home over the coming years. Using growth projections for Village residents (not including the larger market area) and rates of those needing care, there would be an expected demand by 2040 for at least: » » » » »

45 units in Active Living senior housing 26 units in subsidized senior housing 35 units in “congregate housing” 35 units in Assisted Living facilities 41 units in Memory Care

These figures are based on percentage of population, by age, requiring assistance with specific daily activities. They do not include the number of units that currently exist in the Village, and do not include need from outside the market area.

Aging Populations 2020 Housing Study

25%

Disability - Age 21% 20%

15%

10%

5% 4%

3% 2%

0% 17 and Under

18 to 34

Persons with a disability do not

inherently require access to specific housing types or accommodations, dependent upon the type and severity of the disability. More commonly, persons with a disability receive services and accommodations related to the disability as they continue to age and require more specialized forms of housing. This is due to the percentage of population, by age, that experience a disability being disproportionately higher in aging and senior households. When housing units are constructed, they are not traditionally built using methods that easily accommodate aging populations and often require renovation such as wider doorways, lower countertops, and zero entry showers/baths. However, many municipalities have requirements that mandate a percent of new construction be built using universal design standards. These standards often not only provide access to persons with and without disability, but are cheaper to construct on a per unit basis.

35 to 64

65 to 74

75 and Over

Age Projections Age Cohort

2018

Projected Percent Projected Increase 2040

0 - 9 Years

412

3.4%

426

10 - 19 Years

134

10.5%

148

20 - 34 Years

853

5.0%

896

35 - 49 Years

474

8.6%

515

50 - 64 Years

576

6.8%

615

65 - 79 Years

370

23.5%

457

80 and Over

161

119.5%

353

Disability 64

Village of Lake Delton

Accessibility

New Market Rate and Workforce

units in the Village, both ownership and rental, will likely see an increased demand for universal design features. Current Village trends show that households that contain a member with a disability are in all income ranges, but especially in income ranges that would find market rate housing affordable. While lower-income households often have disabilities go unreported or undiagnosed, there are residents at all ages in households of all incomes that require access to appropriate housing design to meet their needs. There is no reliable data on local levels for units currently accessible, estimates nationally place accessible single family homes at just 1% of the total housing stock.

Even at advanced ages, many residents choose to continue to remain in their own housing. However for those that move, over 50% choose to actively seek out residential units with accessibility features such as no-step entries, level style door handles, accessible shelving and electrical, and single floor living. As the population of the Village continues to age, and parents of residents move to be closer to their primary caretaker, ensuring continued supply of units with accessibility features should be a priority.

Disability - Income 120

110

100

Households

65 60

0 < 30% AMI

2020 Housing Study

31% - 50% AMI Hearing or Vision

Ambulatory

51% - 80% AMI CogniĆ&#x;ve

Self-Care or Independent Living

> 80% AMI

Page intentionally left blank.

Village of Lake Delton

Local Impacts on Housing

2020 Housing Study

Assessment H ß

Residential Properties: Assessed Property Values

1 /2 2 23

P ß M unroe Ave

y on Can

Lake Delton Other Municipality

Current Assessed Value

A ß

Less than $100,000 $100,001 - $250,000

1 /2 2 Dr

is c

$250,001 - $500,000

Alca

S B u rrit

s on

$500,001 - $750,000

in lls De

t Ave

Xan adu Rd

Bu nker

Wiscons in Dells Pkwy

Birchwood Rd

lto

r eD

Sauk County, WI

ls id Hil

Park Dr

k La

Lake Delton Housing Study

s in Rive r

h Hiawat a

94 + * , Clara Ave

Berry Rd

Lak e Shore

Trout Rd

$750,001 - $1,000,000

Hillman Rd

S wy

$1,000,001 or Greater No Assessed Value

D ell Cr e e

90 + * ,

T ß

Gasser Rd

Ish na

la Rd

94 + * ,

Busse Ln

Mi rro

ari K alah Dr

Bunker Dr

Hastings Rd

1 /2 2 Fern Dell Rd

Fern Dell Rd

Moon Rd

BD ß

The Assessed Value of land in the Village

helps to portray local impact and accessibility of the housing market. Different zoning districts have unique building requirements and locations, and as such the residential units in them have different associated values. R-3 (Mobile Home) districts show large land value because the land is leased to homeowners, and are considered one parcel for tax purposes. The Village, in promoting development, should continue to consider refinement to the Future Land Use Map of the Comprehensive Plan, as well as flexibility within the zoning code that eases constuction and accessibility. 68

0.2

0.4 Miles

Residential Assessment by District Zoning District

Avg. Assessed Value

Estimated Avg. Fair Market

# of Available Lots

R-1

$235,132

$251,416

R-2

$167,812

$176,851

103

R-3*

$757,540

$810,000

C-1

$254,361

$267,892

PUD

$165,139

$175,742

210

Village of Lake Delton

Since construction and development is based heavily on financial incentive, parcels with low Improvement:Land value ratios are more prone to redevelopment, and will often see increased pressure for teardown/rebuilds even in the singlefamily market.

Parcel Assessment is made up of two

values - land value and improvement value. While both land and improvements (buildings) generally appreciate over time, development and use trends can drastically shift associated land values over the course of decades. In practice, this means that very desirable areas have large increases in land value, while other areas grow at rates more consistent with overall inflation.

In the Village, newer construction generally shows higher Improvement:Land Value ratios. This is partially due to lower land costs (location) as well as increased construction cost and buyer preference (size/bedrooms/etc.). Areas of the Village that are most likely to see teardown/ rebuilds are along the Lake, where older, smaller homes have not gained nearly as much value over time as the land they are built on.

This shifting land value impacts the housing market due to the overall useable life of residential buildings. Single-unit homes have a useable life of 100 years or more, while small- to mid-size multiunits buildings can have a usable life between 50 and 75 years if properly maintained.

Residential Properties: Land Improvement Ratio

De lls

H ß

W isc on s in

Trout Rd

Birchwood Rd

lto

r eD

y on Can

Lake Delton Other Municipality

Land Improvement Ratio

Bu nker

Sauk County, WI

ls id Hil

e ak

Park Dr

Lake Delton Housing Study

s in Rive r

h Hiawat a

94 + * , Clara Ave

Berry Rd

Lak e Shore

1 /2 2

P ß M unroe Ave

2.0 - 4.0

1 /2 2

4.0 - 6.0

6.0 - 10.0

ns co in

t Ave

Xan adu Rd

2.0 or Less

S B u rrit

Alca

A ß

ll De

10.0 - 15.0

Hillman Rd

Pk S wy

15.0 or Greater No Assessed Improvements

D ell Cr e e

90 + * ,

T ß

Gasser Rd Ish na la Rd

94 + * ,

Busse Ln

Mi rro

ari K alah Dr

Bunker Dr

Hastings Rd

1 /2 2 Fern Dell Rd

Fern Dell Rd

Moon Rd

BD ß

0.2

0.4 Miles

Improvement Value Ratio 2020 Housing Study

Available Lots Available Residential Lots

H ß

B er ry

+ , *

s in R iv e r

Lake Delton Housing Study

E Hiaw atha Dr

12 / 2

Lake Sho r e

Sauk County, WI l

Birchwood Rd

e Dr lsid Hil

Canyon

Lake Delton

Bunker Rd

Park Dr

Clara Ave

Wisconsin Dells P kw y

Trout Rd

ßA

ßP Munroe Ave

R-1: Single Family Residential (15)

sin s Del P kw

s isconsin Dell Pkwy S

+ , * 90

ßT

r or

Ishnala R d

Gasser Rd

Kalahari Dr

+ , *

Bunker Dr

Busse Ln

Mir

Data Sources: Municipal Boundary: Sauk County (2019) Roads: Sauk County (2019) Zoning: Lake Delton (2019) Available Residential Lots: Residential Status based on assessment codes

12 / 2 Fern Dell Rd

Hastings Rd

Fern Dell Rd

Moon Rd

BD ß

Aside from Redevelopment, there are

parcels in the Village that remain vacant and awaiting construction/development of some type. The map above shows residential parcels which have an assessed improvement value of $0 and are zoned for residential development. Available parcels are located in several zoning districts, though the number available in each varies. For instance, only 15 lots are currently available for development in the R-1 (SingleFamily) district, while 103 lots are available in the R-2 (Single-Family and Multi-Family) district of the Village.

R-2: Multi Family Residential (103)

Hillman Rd

De l l C reek

PUD: Planned Unit Development (210)

n sc o Wi

urritt Ave SB

Xanadu Rd

PDD: Planned Development District (6)

12 / 2

n Dr Alc a

Other Municipality Available Residential Lots

0.2

0.4 Miles

There are no R-1 lots available in the northern half of the Village. These building sites are located in two distinct clusters, one centrally located off Wisconsin Dells Parkway near Alcan Drive, and the other near Meadowview Drive. Available lots in the R-2 district are more dispersed throughout the Village, with a large cluster near Interstate 90/94 near Lake Blass. PDD and PUD sites that have not yet been constructed have been approved by the Plan Commission as part of larger development projects (Springbrook and Hickory Hill).

Village of Lake Delton

Using approximated employee demand through the survey of 1,134 (32% interested in moving closer to work and a 30% capture rate), it would be expected that 340 units would be needed to serve demand. Eighty-three percent of respondents would prefer single-family housing, which leaves parcel demand at:

Available Lot Land Value is largely

dependent upon the underlying zoning district - which is reflective of both the size and the development potential of the parcel. Parcels that have land values under $100,000 are largely zoned for lower-density residential use. This includes some parcels in PUD districts, as well as most R-1 and R-2 districts throughout the Village.

» » »

Higher-intensity potential uses (generally PUD and C-1) produce higher land values associated with each individual parcel. This is due to several aspects of development, but primarily the land has more assessed value due to the potential use of the property, while at the same time causing development to necessarily have increased residential density in order to generate the revenue needed to support the higher land cost.

282 lower-cost parcels for single-unit housing 20 parcels for 2-3 unit housing 20 parcels/units of attached unit buildings

This represents a current gap of 164 available parcels zoned R-1 and R-2 for single-family homes, 20 parcels zoned for 2-4 unit homes, and 20 parcels zoned for attached townhouse/rowhouse units.

Assessed Value of Available Residential Lots

Pkw

H ß

Clara Ave

12 2 /

+ * ,

s in Rive r

La k e Sho re Dr

Sauk County, WI lto

Birchwood Rd

Lake Delton Housing Study

E Hiaw atha

Hillsi de

rk Dr Pa

Cany

Lake Delton

d on R

Other Municipality

Bunker Rd

P ß

Less than $100,000 $100,001 - $250,000

e ll yS kw sP

$250,001 - $500,000

r Alca nD

ve S Burri t t A

12 / 2

$500,001 - $750,000 Hillman Rd

Dell Creek

Xanadu Rd

s nsin Dell Pkw y S

Wisco

+ * ,

Assessed Value

A ß

Wiscons in D

Munroe Ave

T ß

Ishnala

Gasser Rd

+ * ,

Bunker Dr

Busse Ln

Kalahari Dr

Mi rro

Data Sources: Municipal Boundary: Sauk County (2019) Roads: Sauk County (2019) Zoning: Lake Delton (2019) Available Residential Lots: Residential Status based on assessment codes

12 2 / Fern Dell Rd

Fern Dell Rd

Hastings Rd

Be r ry R

Wi sconsi

n De ll s

Trout Rd

Moon Rd

BD ß

0.2

0.4 Miles

Value of Available Lots 2020 Housing Study

It is the general intent of the residential districts to provide a quiet, pleasant and safe living area protected from traffic hazards and the intrusion of incompatible uses. - Village of Lake Delton Zoning Code

Lake Delton’s Zoning Ordinance is

written to have 3 strictly residential districts in the Village (R-1, R-2, R-3), as well as districts that allow residential as a conditional use (C-1, C-2, WC). In addition, residential units are allowed by rezoning under guidelines of the Planned Unit Development District, which allows oversight and approvals on a case-by-case basis as development is proposed.

R-1 R-2

Zoning District

R-3 C-1 C-2 WC

The residential districts themselves allow Planned Unit Developments as a conditional use, provided site layout and guidelines otherwise consistent with the districts. Overall, there are 3 districts (R-1, R-2, WC) that allow for single-family development by right, while 2 districts (R-2, WC) allow two-unit development by right. Multi-unit developments are allowed a conditional use in all residential and commercial districts.

Minimum Minimum Lot Residential Lot Size Width

SingleFamily

TwoFamily

3-4 Unit

5+ Unit

6,000 sq. ft.

P P

6,000 sq. ft.

60’ Mobile Home C

43,560 sq. ft.

75’

43,560 sq. ft.

200’

10,000 sq. ft.

100’

60’

6,000 sq. ft. SF 60’ SF 10,000 sq. ft. Duplex 100’ Duplex

Accessory Dwelling

P = Permitted Use; C = Conditional Use

Zoning 72

Village of Lake Delton

June 7, 2018

Zoning

Grott o

Lake Delton Dam Hydraulic Shadow Overlay Detail

Poc

Fe rry

Dam R

sCir

a hont

D ako

Tr a

an di

AGRICULTURAL

lP kw y

r dC Gr a n

BUSINESS PARK DISTRICT

Tr ai

Scott

INDUSTRIALCONSERVANCY PLANNED DEVELOPMENT DISTRICT GOVT-INSTITUTIONAL

Lin

Miller Dr

a Rd

Zap Dr

SINGLE FAMILY RESIDENTIAL

MULTI FAMILY RESIDENTIAL

MULTI FAMILY RESIDENTIAL MOBILE HOME RESIDENTIAL

d ow

Hydraulic Shadow Overlay Districts

view Dr

Ishnal

PLANNED UNIT DEVELOPMENT

Great Wolf Dr

State Road 23

PLANNED DEVELOPMENT DISTRICT

SINGLE FAMILY RESIDENTIAL

Me a

Gasser Rd

INDUSTRIAL

PLANNED UNIT DEVELOPMENT

MOBILE HOME RESIDENTIAL Lake Hydraulic Shadow District

Dells Manor Dam Hydraulic Shadow District Hydraulic Shadow Overlay Districts

Lake Delton Dam Hydraulic Shadow District

Lake Hydraulic Shadow District

Village Limits

oa T

Bunker Dr

Dells Manor Dam Hydraulic Shadow District

Timothy Ln

the zoning code helps to ease planning and construction by having clear, concise rules and regulations so that residents and developers understand expectations for the site. Good zoning creates guidelines for this development while Moon Rd maintaining flexibility balanced with community health and aesthetically pleasing design. Overall, the many districts in the Village offer a range of development opportunities for a wide variety of housing types. One unit type that is not listed as a permitted or conditional use in the

500

1,000

Village Limits

2,000

Feet

Date Saved 6/8/2018 10:57 AM Path M:\WI\City\LDELTON\Zoning_CorpLimits2018.aprx

rl rT

Residential Development by right within

Scale 1:24,000 Shadow District Lake Delton Dam Hydraulic

de un

Bunker Dr Moon Rd

Co Timothy Ln

Ye l low

D eer Run Rd

US Highway 12

Vie w Pine

Gillem Rd

es gr

Trl

Delt on

GOVT-INSTITUTIONAL LIGHT COMMERCIAL

WATER FRONT COMMERCIAL

sin Dells Pkwy S Wiscon

Erhardt

r Bay Campground

Fern Dell Rd

Legend Lake Delton Zoning CONSERVANCY

Hillman Rd

e 90

2020 Housing Study

Kalahari Dr

n rou

view Dr

Cliff

Rd Bunker

n gton Rd

Sarri

s eP as

Rdg

Tim b er

Busse Ln

Roa

Interstat

Blu ewate

BUSINESS PARK DISTRICT

COMMERCIAL

Faw n

ils End Tra

sive Dr

Interstate

Kalahari Dr

LIGHT COMMERCIAL

Te r

wood Campg

w Rd

Ringling Rd a

ta R ge Rd id

Wis co

N Judson St

i n Dr

ala

an D r

Deerp ath

lvd Whitetai l B

hDr White B i rc

Me a

Point-In-Time

FLOOD STORAGE WATER FRONT COMMERCIAL

anyo n Dr

N Gasser Rd

Pickerel Slough Rd

nty

O a k Rid g

A lc

rie

Cou

Old Buck Ct

S Burritt Ave

Hines

W Delavan St

Kossuth St

ide

E Adams St

Mathew St

Xanadu Rd

Hills

E Durkee St

N Delavan St

N Burritt Ave

dC Gr a n

Munroe Ave

Hillman Rd

COMMERCIAL

n yL

N Birney St

F i eld

t Fores

anyo n Dr

ne Dr

n Dr

nd Sa stone Dr

e Dr

yon

Can

D ako

Sunset Blvd

Park Dr

l l P th Hil Fla

Sug

AGRICULTURAL

FLOOD STORAGE

News om Ln

Interstate

Fe rry

kw y

ll s P De

nsin

Nixon Rd

Clara Ave

Rd Bunker

North

r Dr

Pik

1st St

Lake Delton Zoning

Grotto

Skyline Ln

State St

Main St

ok Ln

Do Berr gw y Ln oo

Oakbrook Dr

dL n

Meado w

bro

2nd St

Red Oa k Dr

ers

Riv

Arbo

E Lake Ave

W Hiawatha Dr

Commerce St

Bay

gle

Suga

Roa

sCir

Lake Delton Dam Hydraulic Shadow Overlay Detail

Legend

a hont

Dam R

nty

er Ln

u Tro

W Lake Ave Winnebago Ln Kingsbird Ave Dekorra Ln Redbird Ave

Scott Ln

Fern Dell Rd

Cou

Gravy Ln

d ow

t ry L

Blass Lake Dr

Gl e n V

Winnebago St

Spring Broo kDr

iew

Pilgrim Dr Ridgewood St

aple Cir

County Road P

Village of Lake Delton Zoning Map June 7, 2018

Cir

mb ffsid ria

Poc

Birchwood Rd

Hills

i EH

Su n

woods

se t

Cli

Bonanza Dr 1st St

r Lake Shore D

Berry Rd

yon

ide

Trout Rd

Sug

l R ll P ath Hi Fl

Moon Rd

Zoning Code is Accessory Dwelling Units (e.g. granny flat, mother-in-law suite).

Scale 1:24,000

500

1,000

2,000

Municipalities are commonly beginning to write in these unit types into their Zoning Code, whether internal, external, or attached. These units are commonly used as options for senior households to age in place, allowing the household to “downsize” to a more accessible unit while generating rental income of the main unit in retirement. These units also provide options for caretakers and family members to live in close proximity. Gillem Rd

ta R ge Rd id

il P kw y

Ringling Rd

ers

Riv

Feet

Date Saved 6/8/2018 10:57 Path M:\WI\City\LDELTON\Zoning_CorpLimits2018.a

Development Fees One of the Costs directly passed on to

consumers in both ownership and rental markets are fees associated with development. These fees are assessed by the Village in order to ensure quality of development, as well as to mitigate potential negative impacts associated with increased residential density. Lake Deltonâ&#x20AC;&#x2122;s fee schedule was last updated in 2002, and should be periodoically reassessed to ensure fees charged meet the required intent without dissuading development due to prohibitive cost.

Fee

Example: The fee schedule in the table below is a sample of total and per-unit development fees for a hypothetical subdivision of thirty 2,550 sq. ft. singlefamily homes and eight 1,500 sq. ft. duplexes (16 units). This 46-unit development under current fee structure would add a cost of nearly $1,900 per dwelling unit, without accounting for the cost of sewer main extenion.

Type

Amount

Unit

QTY

Total

Land Disturbance

$50

footprint

$1,900

New Residential Permit

$0.15

sq. ft.

99,000

$14,850

Mechanical - HVAC

$40

dwelling unit

$1,840

Electrical

$65

dwelling unit

$2,990

Plumbing

$150

dwelling unit

$6,900

Sewer Connection

$500

dwelling unit

$23,000

Water Fixture Charge - Minimum

$313

dwelling unit

$14,398

Sewer Drainage - Minimum

$250

dwelling unit

$11,500

Footing and Foundation

$100

footprint

$3,800

Soil Erosion Plan

$50

footprint

$1,900

Stormwater Plan

$25

footprint

$950

Driveway Permit

$50

dwelling unit

$2,300

Zoning Commission Meeting

$350

meeting

$350

Planning Commission Meeting

$350

meeting

$350

Total per Development

$87,028

Total per Dwelling Unit

$1,891.91 Village of Lake Delton

Housing Challenges & Recommendations

2020 Housing Study

There is a market for more housing.

Village of Lake Delton

Steps to increase housing supply include: Growth projections for the Village of Lake Delton indicate that current household growth rates are lagging behind expectations - and lagging behind peer communities. More employees would like to live in the Village. More area residents would like to call Lake Delton home. These recommendations call for increasing units - creating more opportunities for rental housing and ownership housing that can serve all members of the community.

Extend Tax Increment Districts to Fund Housing Development

Adopt an Accessory Dwelling Unit (adu) Ordinance

Wisconsin Tax increment Finance (TIF) law currently allows municipalities to adopt a 1-year extension on an expiring Tax Increment District (TID) by municipal resolution. All of the revenue generated by the TID over the period of extension can be used for affordable housing - defined as “housing that costs a household no more than 30% of that household’s gross income”, and can be used anywhere in the Village. As detailed in this report, income - and affordability - are relative to individual households. This means that 75% of the revenue collected in the expiration year of the TID can be used for a wide variety of housing types and price-points, as long as households entering that housing (in aggregate) are not expected to experience cost burden.

Part of increasing density to foster more walkable and closely knit neighborhoods, Accessory Dwelling Units can commonly be found above garages, as small side-yard homes, and as 2nd stories or basements that are converted into their own unit with a separate entrance. While financing can be difficult, ADUs allow homeowners to create an additional dwelling unit on their own property for family members, caretakers, and friends who are in need of housing. They are also commonly used by aging households to “downsize” their own housing, while maintaining ownership of the property as either an income-generating rental, or housing for family members serving as caretakers later in age.

Revisit the Zoning Code, Add Unit Definitions, and Allow Multi-Family by Right The Village’s current zoning code allows for many housing types across districts - but most are classified as a conditional use. To make it easier to build housing, the Village could consider separating different unit-mixes of residential buildings in code, and provide standards that could be met administratively in some districts for permitted use. Many villages, cities, and states across the Country are looking to not only expand housing supply, but diversify types of housing in the market while doing so. Younger generations show a preference for dense, walkable neighborhoods - 17% of survey respondents indicated a preference to live in 2-19 unit buildings including multi-unit buildings and townhomes, even as ownership options. Including these types in ordinance encourages developers to build these products. 2020 Housing Study

Use Tax Increment Financing to Provide Financial Support to Developers that Need It Tax increment Financing is an important tool and more than ever one being used to provide direct financial assistance to developers of both rental and owner-occupied housing. Communities across the State need housing - but it doesn’t cost less to build the further you are from Madison or Milwaukee. Lake Delton is fortunate that it has a wide employment base, which displays demand for housing to development partners. And when development occurs in Lake Delton instead of other communities in the commuter shed, it provides not only tax revenue, but amenities to residents of the Village. TIF can be used to bridge financing gaps that make development infeasible, and support for building local housing units works to support long-term economic development. TIF funds should support housing consistent with goals identified in this study such as senior housing, housing affordable to the median employee income, etc.. 77

Many employees would live closer to work if there were opportunity. 78

Village of Lake Delton

Steps to build more employee housing include: If 25% of the employee households living outside of Lake Delton were to move into the Village, Lake Delton would already be at it’s projected number of 2040 households. While 80% of employee households would prefer to own housing, there is a current market of high-income renter households, indicating support and demand for both tenure types. Of primary concern are the obstacles noted in the community survey - the negative perception and experiences with housing affordability, availability, and type options - which were the only categories having more negative response rates than positive.

Develop a Downpayment Assistance Program (DPAP) for Employees who Buy in Lake Delton Community Survey results indicate that even for those who have incomes to afford homeownership, downpayment is still an issue. Of renter households, 54% indicated this as the primary barrier to attaining homeownership, followed by “too much existing debt” (which can help to be offset through additional downpayment) and “lack of type of unit I want”. Local employers could work together to develop a DPAP to assist employees with home purchase including appreciation forgiveness if residency in the Village is maintained. Often downpayment assistance programs function by “buying down the loan” and placing a secondary lien on the property. This lien repays the holder of the loan upon transfer of title, along with a share of appreciation which recapitalizes the fund. This program can also be coupled with programs such as the Downpayment Plus program through the Federal Home Loan Bank of Chicago, which provides matching funds on downpayment assistance, maximizing employer-fund leveraging.

Start a Land-Banking Fund that supports Desired Development Types One of the main tools to guide the private market aside from zoning and land use regulations is municipal control of property. The Village should identify areas where multi-unit properties are desired, and proactively purchase parcels that can be assembled or sold to developers who will build the housing type the Village prefers.

2020 Housing Study

Survey Employees Annually to Track Changing Preferences and Needs Part of meeting the housing requirements of employees is understanding their changing needs and preferences. Employees should be asked directly - on an annual basis - where and how they live, what they want in housing, and key demographic information that can help instruct land-banking, TIF, and other programs that provide targeted support to needed development types. This can be accomplished through a “quickpoll” (5-10 question) survey distributed by major area employers in a coordinated distribution. These questions should be consistent, and trends maintained every year to track changes that would benefit community leadership and development partners in proactively meeting the needs of employees.

Support Market-Rate Rental Housing Aside from TIF gap-financing for market rate residential development, public officials can and should support most new housing types in almost all areas. Recognizing a need for housing is key to conversations that can attract developers and retain employees.

Actively Seek “Cottage Court” Style Development as a PUD Cottage Court style development is an affordable ownership option and desirable model of rental. The Board should explore areas of the Village where implementation could be possible, assemble land if necessary, and promote to developers. 79

Residents need increased options.

Village of Lake Delton

Steps to increase affordability include: For residents who already live in the Village, there are several key issues. Residents who previously would have been able to afford homeownership are now finding themselves being outpriced in an appreciating and competitive market. Rental housing costs are affordable to most - but some resident households are spending more than 50% of their gross income on housing costs. And there are hardly any vacancies in the housing market - meaning that households are likely staying in their units longer, even if they would prefer to live somewhere else.

Provide Support to Mobile Home Parks that Serve the Community Mobile home parks provide housing stability for at a lower price point than other ownership options for residents, and house a significant portion of the population (38% of all owner households). These parks are a key part of the community, and a key community affordable housing asset.

Partner with Developers and Utilize Village Funding to Leverage State and Federal tax Credits Tax Credits provide equity funding to developers through an application process with the Wisconsin Housing and Economic Development Authority (WHEDA). There are multiple forms of Tax Credits and Tax Credit Developments. Often, even with the influx of equity the sale of credits provides, developers still have financing gaps that make projects infeasible. Through TIF, affordable housing TIF extension, or municipal contribution, create fund availability for municipal support of Tax Credit developments. Project partners should be identified early on in the process, as financial leveraging and feasibility are important aspects of credit awards.

Work With Partner Municipalities to Provide ‘Housing First’ Units in Assisted Developments While homelessness is not prevalent in Lake Delton, there are households facing housing instability that result in individuals and families experiencing homelessness. If the Village is providing funding for Tax Credit development, proactively work with the developer and Central Wisconsin Community 2020 Housing Study

Action Council to set aside 1-2 units to be reserved for households experiencing or at-risk of homelessness.

Waive Fees on Housing Rehab for Low-Income Owners The Village has the ability to waive fees associated with permits for housing rehabilitation projects. If a households qualifies as low income (< 80% AMI), fees can be waived. These households should additionally be referred to the Sauk County CDBG Loan program, which provides 0% interest loans to low-income owners and landlords that provide housing to low income tenants.

Actively Promote Downpayment and Repair Assistance from SHR The Southern Housing Region (SHR) provides downpayment assistance programs to incomeeligible households. The Village should actively promote this assistance to lenders, realtors, and others involved in the housing market that can connect residents with this resource.

Recruit Developers who Will Build more Market-Rate Housing Building more market rate units will attract some households into newer units, which opens up older (and generally more affordable) units for other households. Considering vacancies for rental units are practically nonexistent in the Village, and owners seeking “starter homes” find a lack of market supply, all residential unit development will ease pressure on the market. New construction can provide spillover effects for residents of all incomes, both resident renters and households looking for ownership options. 81

Aging residents will need increased ageappropriate housing.

Village of Lake Delton

Steps to help residents age in place include: 300 housing units are owned by senior residents over the age of 55 - and many of them would like to continue to age in their own homes. At the same time, residents over 35 are projected to increase, and their parents may wish to move closer to children and grandchildren as they continue to age. There is a need for senior housing options nationally, and there is a need for senior housing options in Lake Delton. One development is already planned, but more options will be needed over the next 20 years.

Extend Tax Increment Districts to Fund Renovations for Seniors

Implement a Property Tax Assistance Program for Low Income Seniors

Wisconsin Tax increment Finance (TIF) law currently allows municipalities to adopt a 1-year extension on an expiring Tax Increment District (TID) by municipal resolution. 25% of the final year increment generated by the district must be used to improve the municipality’s housing stock. This 25% should be pooled into revolving loan fund that can be used to support resident homeowners over age 55 and under 80% AMI remodel their homes with necessary accessibility features that allow them to age in place. The structure of the fund should record the loan as a lien against the property payable upon transfer of the title, with little to no interest necessary to recapitalize the fund. This will allow senior residents to make necessary modifications to their homes, while continuing to age in place for as long as they would like.

One of the largest annual costs for aging populations is property taxes. As the Village is one of the entities charging the tax, they have the ability to defer the owner needing to pay the tax. The tax does, however, still need to be paid. The Village could set up a revolving loan fund to pay eligible resident’s property taxes, repaid through a lien on the property that re-capitalizes the revolving loan fund upon transfer of the title.

Continue to Support Age-Restricted and Specialized Care Development Types The Village Board is currently supporting an agerestricted housing development in the Village center that will serve a much-needed niche in the community. However, with anticipated growth in the current senior resident population of the Village, more units will need to be added over the next 20 years so that support structures are in place when they are needed. The Village should continue to monitor demand, and asess success of the current development in 3-5 years to determine additional need.

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Unlike traditional reverse-mortgages, these municipal programs for qualifying (low-income) seniors are usually designed to have minimal fees and low interest rates. Interest rates are typically set at the Village’s cost of borrowing (borrowing money for the fund) in addition to a set percent of that municipal borrowing cost. The collecting agency for the property’s tax bill would be paid through the Village reverse-mortgage fund, and reimbursed at a later date.

Encourage Universal Design Standards in New Development Units that meet universal design requirements are cheaper or equivalent cost to standard units. Investing in and supporting this practice now will increase options for households aging-incommunity or looking to relocate to Lake Delton, increasing access to housing and quality of life.

Previously Mentioned:

• Sauk County CDBG 0% Loan for Rehabilitation • ADU Ordinance

Foster a sense of place for residents.

Village of Lake Delton

Steps to foster a sense of place include: With the importance of the tourist economy, there are aspects of Lake Delton that can sometimes feel like “a place for tourists” instead of “a place for residents”. The Village should actively look for ways to increase sense of place - the feeling that there are distinct, residential neighborhoods inhabited primarily by year-round residents who know and love the Village, which is why they call it home. These neighborhoods can include resident serving commercial pockets and gathering spaces that make the Village an even more desirable place for families to live.

Consider the User When Reviewing Development Proposals

Community Conversations & the Comprehensive Plan

As a community whose economy is centered on tourism, many developments are targeted to further capture that economic base. When considering proposals and improvements, look for opportunities that have shared value for tourists and residents alike, increasing the amenities available to and promoted for local households. For residential developments, if targeted to residents, ensure they fit into the community in ways that actively work to promote pockets of resident engagement, activity, and community. The Village can work to ensure the same highquality experiences for residents that tourists have, while also promoting a unique residential place.

The Village of Lake Delton’s Comprehensive Plan was last updated in 2003. Since then, the Village has overcome major challenges and undergone large changes. As the policy document that guides decisions on future growth and connections in the community, this plan should be updated to reflect most recent conditions and evolving needs - not just in housing, but in economic development, community resources, and other key topics.

Encourage Village-Community Subdivisions There is a need for housing in the Village, but also a need for increased community connection. In planning for future subdivisions and other resdidential developments, promote aspects that connect the community and promote amenities complementary to housing for year-round residents. In practice, a Village-Community subdivision would foster neighborhood-based engagement, creating a unique sense of “home”. Amenities could include neighborhood-serving commercial pockets and ranges of different housing types by cost, structure, size, and tenure. This could include small multi-unit buildings, attached unit townhomes, single-unit detached family housing, accessory dwelling units, cottage courts, and options for ownership or rental of all types. 2020 Housing Study

Importantly, the Comprehensive Planning process works best when fostering and facilitating largescale community and resident conversations about shared experiences and a shared future. The Village should utilize this process to connect residents, and ensure that needs are being met on every level to attract and retain households to the community.

Provide Connections between Future Development and Amenities As part of any future housing development, the Village should consider how residents can access multi-use paths, trails, parks, and other community amenities. New housing should be connected to existing and future trail and path systems that allow nearby (or in-neighborhood) access to parks, open spaces, playgrounds, and centers of community activity.

How Many Units?

How many units?

Village of Lake Delton

Lake Delton has a demand for more residential housing. Based on estimated employee demand and current undersupply for residents, by 2040 the Village could look to add: Rental Housing Stock » 75-95 units priced $530 - $710 » 135-150 units priced $1,100 - $1,500 Ownership Housing Stock: » 115-135 units priced $135,000 - $165,000 » 250-300 units priced $225,000 and More

Employee demand assumes a 30% capture rate for 83% of employees who work, but do not live in the Village, adjusted for self-reported income of employees and accounting for units already in the market. Range estimates of the number of units under-supplied in the current market were then added to the employee total for a final estimate range. Unit costs are based on current (FY 2019) Housing Affordability charts in prior chapters. Subsequent year costs should be considered utilizing inflation or comparable income statistics. 2020 Housing Study

Data Sources

Village of Lake Delton

Page 4: HUD FY 2019 Income Limits

Page 34: US Census Bureau American Community Survey

Page 5: MIT Living Wage Calculator

Page 41: HUD FY 2019 Income Limits

Page 6: HUD FY 2019 Income Limits

Page 42: US Census Bureau American Community Survey

Page 7: Census Bureau - On the Map & Journey to Work

Page 43: HUD Comprehensive Housing Affordability Strategy

Applications

Page 8: HUD Comprehensive Housing Affordability Strategy Page 11: US Census Bureau American Community Survey Page 12: US Census Bureau American Community Survey Page 13: US Census Bureau American Community Survey Page 14: US Census Bureau American Community Survey; WI

Page 44: HUD Comprehensive Housing Affordability Strategy Page 45: HUD Comprehensive Housing Affordability Strategy Page 46: HUD Comprehensive Housing Affordability Strategy Page 47: HUD Comprehensive Housing Affordability Strategy Page 48: HUD Comprehensive Housing Affordability Strategy

Department of Administration

Page 49: HUD FY 2019 Income Limits

Page 15: US Census Bureau American Community Survey; WI

Page 50: US Census Bureau American Community Survey; Zillow

Department of Administration

Data & Research

Page 16: US Census Bureau American Community Survey; WI

Page 51: HUD FY 2019 Income Limits; Zillow Data & Research

Department of Administration

Page 52: US Census Bureau American Community Survey; Zillow

Page 17: US Census Bureau American Community Survey

Data & Research

Page 18: US Census Bureau American Community Survey

Page 53: HUD FY 2019 Income Limits; Zillow Data & Research;

Page 20: HUD FY 2019 Income Limits Page 21: HUD Comprehensive Housing Affordability Strategy Page 23: HUD Comprehensive Housing Affordability Strategy Page 24: HUD Comprehensive Housing Affordability Strategy

HUD Comprehensive Housing Affordability Strategy

Page 54: Multiple Listing Service Page 55: Multiple Listing Service Page 56: US Census Bureau American Community Survey; HUD Comprehensive Housing Affordability Strategy

Page 25: US Census Bureau American Community Survey

Page 57: US Census Bureau American Community Survey

Page 26: HUD Comprehensive Housing Affordability Strategy

Page 58: US Census Bureau American Community Survey

Page 27: HUD Comprehensive Housing Affordability Strategy

Page 60: WI Department of Public Instruction ESSA

Page 28: HUD Comprehensive Housing Affordability Strategy

Page 61: 2018 WI Central CoC PIT WISBOSCOC

Page 29: HUD Comprehensive Housing Affordability Strategy

Page 62: HUD Comprehensive Housing Affordability Strategy

Page 30: US Census Bureau American Community Survey

Page 63: US Census Bureau American Community Survey

Page 31: US Census Bureau American Community Survey

Page 64: US Census Bureau American Community Survey

Page 32: US Census Bureau American Community Survey

Page 65: HUD Comprehensive Housing Affordability Strategy

Page 33: US Census Bureau American Community Survey

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2020 Housing Study

All ACS data sources vintage 2018, HUD 2016