The Sconi

Four family-owned Sheboygan County businesses and a local economic development agency have established a $10 million fund to address the county's affordable housing shortage. The Forward Fund aims to build 400 to 500 single-family homes over the next several years, according to Brian Doudna, executive director of the Sheboygan County Economic Development Corp. (SCEDC).

Johnsonville, Kohler Co., Sargento, Masters Gallery Foods, and Sheboygan County each contributed $2 million to create the fund. The initiative allows employees of any Sheboygan County company or those with an accepted job offer in the county to purchase these homes.

Michael Stayer-Suprick, CEO of Johnsonville Holdings, highlighted how the lack of affordable housing has affected hiring and increased employee turnover due to long commutes. "The lack of affordable housing makes it challenging to bring in people from outside the community," he said.

A report compiled for the City of Sheboygan by Redevelopment Resources showed that the average sale price of a home increased by 24.4% from 2021 to 2023. Additionally, single-family home sales have declined while the time homes stayed on the market decreased significantly.

Sheboygan needs between 1,300 and 1,850 new housing units over five years to meet demand projections. To alleviate this issue, SCEDC collaborated with local companies starting in 2021 through the Forward Fund.

The county's contribution came from federal emergency funds received under the American Rescue Plan Act. Combined with private contributions from four companies that will not receive a cash return on their investment, the Forward Fund covers land acquisition, infrastructure development, and home construction by Werner Homes.

Homes are sold without real estate brokers via www.someplacebetter.org at prices close to construction costs. Revenue from sales is reinvested into the fund for further construction projects.

The first project under this initiative is Founders’ Point in Sheboygan Falls. As of July end, 16 homes have been built and 11 sold. By August end, all remaining homes are expected to be sold.

Buyers must meet specific requirements such as an annual household income not exceeding $134,474. Thirteen banks have agreed to finance these purchases for qualified buyers. Additionally, up to $65,000 in down payment assistance is available through a program provided by the City of Sheboygan Falls.

Founders’ Pointe homes range from 1,300 to 1,500 square feet and sell for between $315,000 and $325,000. Eight initial buyers were first-time homeowners; six moved from outside Sheboygan County.

Future plans include constructing a neighboring subdivision called Founders’ Pointe Neighborhood with 41 homes starting in August and another estimated 90-home subdivision beginning next summer.

Doudna emphasized that private contributors volunteered seed funding without solicitation: “We’re in a very fortunate position... We collectively look at the good of the whole.”

Ken Wysocky is a Milwaukee-area freelance journalist and editor with more than 40 years of journalism experience.Permission to reprint is granted as long as the author and Badger Institute are properly cited.