MADISON, Wis.–Two Madison, Wis. credit unions have made investments in a fund aimed at boosting affordable housing. The funds are part of a combined $11.85 million that has been pledged to the Dane Workforce Housing Fund.
University of Wisconsin Credit Union has pledged $1million.
“We are Madison’s hometown credit union and even as we’ve grown, our concern for the well-being of our hometown has never left us. We know financial security and access to good, affordable housing is fundamental for well-being, and we’re working to help our members achieve these goals,” said CEO Paul Kundert in a statement to its membership on the investment.
According to Kundert, approximately one-in-four renters in Dane County, Wis. struggle to afford housing.
This is an important step. About 1 in 4 of Dane County’s renter households struggle to afford housing. “Work force housing is essential, and housing affordability is a growing problem during the current economic and health crisis as more people face unemployment, furloughs, and cutbacks in hours,” Kundert said.
According to UWCU, the new units created with the help of the funding will target households whose incomes fall between 40%-80% of the Area Median Income.
Necessary to Grow Economy
“The supply of affordable housing is necessary to grow the economy. It enables local businesses to retain and recruit working adults who otherwise cannot afford to live in Dane County,” wrote Kundert. “This includes teachers, nurses, government employees, medical records specialists, lab assistants, hairdres
sers, retail clerks, food and hospitality workers, and many others who provide crucial services to the community.”
The United Way and the Economic Stability Council (ESC) said the first project underway through the Wisconsin Housing Preservation Corporation is a 39-unit building in Middleton, Wis., and that over the next three years ESC's goal is to create 500 new, affordable workforce housing units in Dane County with a longer-term commitment to keeping these units affordable.
Summit CU Pledges Funds
Separately, Summit Credit Union has also made an investment of $1 million.
“At Summit, we’re committed to playing an active role in supporting our communities,” said Summit Credit Union President & CEO Kim Sponem. “This project will help uplift the hardworking residents, families and businesses of Dane County, and we’re proud to invest in improving our collective future.”
The campaign’s second phase of funding is expected to begin in late 2021 or early 2022, allowing for the continued investment of projects into 2023 and beyond.