All About Workforce Housing: Building a Strong Foundation for Greater Beloit

The Greater Beloit Economic Development Corporation (GBEDC) understands the crucial role that workforce housing plays in fostering a thriving community. Attracting and retaining a skilled workforce is essential for business growth and economic prosperity. As the backbone of a thriving local economy, workforce housing ensures that residents have access to suitable living conditions and plays a pivotal role in attracting and retaining a skilled and diverse workforce.

What is Workforce Housing?

“Workforce Housing” is defined as housing that is affordable to households making less than 80% of Area Median Income (AMI) based on the number of persons per household. This population segment often needs help finding affordable housing options within a reasonable commute of their workplaces.

The Essence of Workforce Housing

Workforce housing is a term that encapsulates affordable housing options tailored to meet the needs of the local workforce. For GBEDC, this means creating an environment where employees across various income brackets can find affordable and conveniently located housing. This benefits the residents and bolsters the region's economic prosperity by ensuring a stable and satisfied workforce.

Benefits of Workforce Housing

• Attracts and Retains Talent: A readily available pool of qualified individuals allows businesses to expand and operate efficiently.
• Boosts Local Economy: Increased housing options stimulate economic activity through construction jobs, retail spending, and property taxes.
• Enhances Community Vibrancy: A diverse housing market fosters a more vibrant and inclusive community.

Addressing the Need

GBEDC recognizes the current housing shortage in Greater Beloit and is actively working towards solutions. Here are some key initiatives:

Housing Demand Analysis: Providing quality housing in the Greater Beloit Region is a priority for the GBEDC.  In 2021, the GBEDC commissioned a Housing Demand Analysis, funded primarily by our partners at Beloit 200 and completed by Stantec.  Housing Developers interested in building in the Greater Beloit Region will find the Housing Demand Analysis a critical tool in determining worthy investments.

TIF Housing Fund: The Tax Increment Financing (TIF) program allows the City of Beloit to utilize a portion of the increased property tax revenue generated from a development project to finance public improvements, including affordable housing initiatives. Tax Increment Financing (TIF) is a powerful tool for financing public infrastructure and community development projects. The TIF Housing Fund can be a game-changer in the context of workforce housing, where GBEDC can channel these funds into affordable housing initiatives by earmarking a portion of tax increments generated from increased property values in a designated TIF district. This strategy allows the community to invest in its growth, enhancing housing options and boosting economic development.

Incentivizing Development

Several programs exist to encourage the development of workforce housing:

Tax Credits:  Federal and state tax credit programs offer financial incentives to developers who construct or rehabilitate properties designated for low- and moderate-income families. These credits can significantly reduce development costs, making workforce housing projects more feasible.  More info at www.wheda.com

Affordable Land:  The City and GBEDC own undeveloped tracts of land that can be sold at discounted prices for workforce housing development.  More info can be found at www.greaterbeloitworks.com under “Site Selection.”

Moving Forward

The GBEDC seeks partnerships with developers, government agencies, and non-profit organizations to address workforce housing needs. Here are some resources for developers interested in exploring workforce housing opportunities in Greater Beloit:

• Greater Beloit Housing Demand Analysis: https://www.greaterbeloitworks.com/life/housing
• City of Beloit Economic Development Department: https://www.beloitwi.gov/economic-development

By working collaboratively, the GBEDC aims to ensure Beloit offers its workforce a welcoming and affordable housing market, fostering a solid and sustainable economic future. Understanding the dynamics of tax credits, land suitability, and the strategic application of the TIF Housing Fund empowers the community to actively participate in shaping its future. By fostering affordable housing options, GBEDC addresses immediate housing needs and lays the groundwork for sustained economic growth and community well-being.