Milwaukee, other Wisconsin cities that change zoning to attract housing could get state cash

Milwaukee and other Wisconsin communities seeking to attract affordable housing by changing their zoning codes could be rewarded with grants from state taxpayers.

That’s through a provision in Gov. Tony Evers’ 2025-27 budget proposal.

If approved by the Legislature, the $119 billion budget would include $20 million to encourage local governments “to adopt zoning changes that reduce barriers to the development of more affordable housing options.”

The Wisconsin Department of Administration would operate the program. Local governments, including tribal nations, could compete for grants by adopting one or more zoning policies.

Those are reducing minimum lot sizes and widths; reducing setback requirements to allow greater use of lots; increasing allowed lot coverages to match historic patterns; adopting a traditional neighborhood development ordinance, and allowing accessory dwelling units.

That’s according to the budget legislation, Senate Bill 45.

Evers administration representatives didn’t immediately respond to the Journal Sentinel’s request for more information about the zoning change program.

Some of its provisions are similar to what Mayor Cavalier Johnson’s administration is recommending through the Department of City Development’s stalled Growing MKE proposal.

City officials are pleased to see “budget initiatives that the Department of City Development has already begun to advance through our Growing MKE plan,” said Madison Goldbeck, department marketing and communications officer.

The city supports Evers’ proposals and will work with the Legislature “to advance initiatives that provide more affordable housing options for our community,” Goldbeck said, in a statement.

Growing MKE needs Common Council approval.

The plan’s suggested zoning changes — requiring separate council approval — would lead to greater density in a city where 40% of the land is restricted to single-family homes.

Growing MKE includes encouraging development of accessory dwelling units. Those are houses or apartments that share the building lot of a larger, primary home.

Such ADUs are generally smaller and more affordable than traditional single-family homes.

Growing MKE supporters say increased density would include such “neighborhood scale” housing as duplexes, triplexes, townhouses, cottage courts and four-unit apartment buildings.

That would encourage more housing construction, including affordable units, according to the plan’s supporters.

Opponents believe Growing MKE would encourage absentee investor landlords to increase their ownership of central city housing — driving up rents.

That opposition led to more public meetings to explain Growing MKE and seek input. It has yet to return to the Plan Commission before undergoing council review.

The state budget proposal from Evers, a Democrat, will undergo review by a Legislature where both chambers are controlled by Republicans.

Evers’ budget would spend too much and is not realistic, according to Assembly Speaker Robin Vos.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Bluesky, X and Facebook.

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This article originally appeared on Milwaukee Journal Sentinel: Wisconsin cities could get state cash with zoning changes for housing

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