>> THANKS.
>> THE BUDGET ALSO INCLUDED $525
MILLION TOWARD AFFORDABLE
HOUSING IN WISCONSIN.
HOUSING IS SORELY NEEDED IN THIS
STATE WITH EXPERTS SAYING
WISCONSIN WILL NEED TO BUILD
NEARLY 140,000 HOUSING UNITS
DURING THIS DECADE TO
ACCOMMODATE ITS UNDER 65
POPULATION.
IN MADISON, THE FASTEST GROWING
CITY IN THE STATE, THE COST OF
HOUSING, BOTH RENTING AND
BUYING, IS OUT OF REACH FOR
MANY.
NEEDED HOUSING UNITS FALL WAY
SHORT OF DEMAND DUE TO
POPULATION GROWTH.
MADISON GAINED 5,600 RESIDENTS
JUST SINCE 2020.
THE CAPITAL CITY IS ONE OF THE
MOST EXPENSIVE PLACES IN THE
STATE TO BUY A HOME, AND BECAUSE
THE CITY'S RENTAL VACANCY RATE
IS SO LOW, DEMAND PUSHES THE
AVERAGE COST OF A ONE BEDROOM
OVER $1,400 A MONTH, ACCORDING
TO RENTAL SITES.
EFFORTS TO BOOST AFFORDABLE
HOUSING MAKE A DENT.
WE TURN TO MADISON MAYOR SATYA
RHODES-CONWAY.
THANK YOU FOR BEING WITH US.
>> THANK YOU FOR HAVING ME.
>> SO WILL THE FIVE MEASURES IN
THE AFFORDABLE HOUSING PACKAGE
THAT ARE PART OF THE BUDGET
BETWEEN FUNDING TO REHAB OR
CONVERTING COMMERCIAL BUILDINGS
INTO HOUSING HELP THE CRUNCH IN
MADISON?
>> I CERTAINLY HOPE SO.
I THINK WE HAVE BEEN DOING
PERHAPS MORE THAN OTHER CITY
AROUND THE STATE HAVE IN TERMS
OF THE PRODUCTION OF HOUSING, SO
IT DOESN'T CHANGE A LOT FOR US
IN TERMS OF WHAT THE CITY DOES,
BUT ANY TIME THERE'S MORE FUNDS
AVAILABLE TO PRODUCE HOUSING,
THAT'S HELPFUL.
>> SO WHAT ARE YOUR CITY'S
PARTICULAR PAIN POINTS WHEN IT
COMES TO NOT HAVING ENOUGH
HOUSING?
>> I THINK REALLY WHAT WE'RE
FACING IS THAT HISTORICALLY, AND
I'M TALKING FOR DECADES, MADISON
HAS UNDERPRODUCED HOUSING.
WE HAVE NOT KEPT PACE WITH
POPULATION GROWTH.
YOU REFERENCED OUR RECENT
POPULATION GROWTH, BUT WE HAVE
BEEN GROWING AS A CITY FOR QUITE
SOME TIME, AND WE JUST HAVE NOT
PRODUCED ENOUGH HOUSING UNITS.
THAT'S WHY WE FIND OURSELVES IN
THE PROBLEM THAT WE'RE IN NOW
AND REALLY THE SOLUTION IS TO
BUILD MORE HOUSING.
WHEN I SAY THAT, I MEAN EVERY
TYPE OF HOUSING.
WE NEED MORE FAMILY, WE NEED
MORE CONDOS, WE NEED MORE
APARTMENTS, WE NEED BIG
BUILDINGS, SMALL BUILDINGS, AND
SO WE'RE TRYING TO DO ANYTHING
WE CAN TO MAKE IT EASIER TO
PRODUCE HOUSING.
>> LIKE WHAT?
>> SO WE'VE DONE A NUMBER OF
THINGS AROUND OUR ZONING CODE TO
MAKE IT EASIER TO BUILD HOUSING
BY RIGHT AND/OR TO ADD
ADDITIONAL HEIGHT IF YOU'RE
BUILDING HOUSING OR IF YOU'RE
BUILDING AFFORDABLE HOUSING.
WE'VE MADE IT EASIER TO BUILD
BACKYARD COTTAGES AND WE DO A
BUNCH AROUND SUBSIDIZING
AFFORDABLE HOUSING OUT OF THE
CITY'S BUDGET AS WELL, AND THEN
WE WORK CLOSELY WITH PARTNERS,
WHETHER THAT'S DEVELOPERS, THE
UNIVERSITY, YOU KNOW, OTHER
ENTITIES IN TOWN TO ENCOURAGE
THE PRODUCTION OF HOUSING IN
DIFFERENT AREAS OF TOWN.
>> AND YET IT SEEMS LIKE YOU
NEED THEY SAY HOUSING UNITS TO
GO UP RIGHT NOW.
>> YES!
>> ALL OF THAT TAKES A LONG LEAD
TIME.
>> YEAH.
WE DO SEE PRODUCTS TAKE TWO TO
THREE YEARS, REALLY, TO COME TO
FRUITION.
AND SO THAT'S WHY IT'S BEEN SO
IMPORTANT THAT WE WORK AS FAST
AS WE CAN NOW TO MAKE IT EASIER
SO THAT WE START TO SEE THE
IMPACTS THAT HAVE GOING FORWARD.
I WILL SAY THAT UNDER MY
ADMINISTRATION, WE HAVE
PERMITTED THOUSANDS OF HOUSING
UNITS AND WE HAVE SEEN HUNDREDS
OF AFFORDABLE HOUSING UNITS COME
ON-LINE SO WE'RE MAKING
PROGRESS, BUT THERE'S MORE THAT
NEEDS TO BE DONE.
>> ONE THING THAT STANDS OUT
WHEN YOU DRIVE AROUND OR WALK
AROUND MADISON, IS ALL OF THESE
KIND OF LUXURY HIGH-RISE
APARTMENT BUILDINGS GOING IN.
NOW THAT GIVES YOU SOME UNITS,
IT GIVES YOU SOME VACANCY, BUT
DO THOSE BUILDINGS RATCHET UP
THE RENTS FOR EVERYONE?
>> WELL, SO A COUPLE OF THINGS
THERE FIRST OF ALL, YOU SEE
THOSE BUILDINGS AND YOU THINK
THEY'RE LUXURY BUILDINGS BUT, IN
FACT, NOT ALL OF THEM ARE.
IN FACT, MANY OF THEM HAVE
AFFORDABLE COMPONENTS INSIDE
THAT BUILDING.
SO WHEN WE'RE SUBSIDIZING
HOUSING, WE ARE OFTEN NOT
CREATING AN ENTIRE BUILDING
THAT'S AFFORDABLE BUT WE ARE
CREATING A PERCENTAGE OF THE
UNITS IN THAT BUILDING.
AND SO THAT DEFINITELY HELPS.
THE OTHER THING IS THAT THERE'S
ACTUALLY GOOD DATA THAT PUTTING
IN NEW MARKET RATE HOUSING DOES
NOT RAISE THE RENTS OF
SURROUNDING THEM, AVAILABLE
HOUSING.
NOW, WHAT IS CAUSING RENT
PRESSURE IS THE LACK OF UNITS.
BECAUSE WHEN LANDLORDS CAN RENT
FOR A HIGHER RENT, THEY'RE GOING
TO.
AS LONG AS WE HAVE VACANCY RATES
IN THE ONE OR TWO PERCENT, THE
MARKET IS ENTIRELY TIPPED TO THE
LANDLORD'S FAVOR AS OPPOSED TO
THE TENANT.
>> SO THIS IS NOT TO MENTION LOW
INCOME HOUSING.
HOW WOULD YOU GRADE MADISON ON
THAT?
>> SO WE NEED ALL TYPES OF
HOUSING, BUT WE PARTICULARLY
NEED TO BE CREATING HOUSING THAT
IS AFFORDABLE FOR PEOPLE THAT
ARE 30% OR LOWER OF THE AREA
MEDIAN INCOME.
AND INTERESTINGLY, THAT PEOPLE
THAT ARE BETWEEN 80 AND 120% OF
AREA MEDIAN INCOME.
THOSE ARE THE TWO PLACES WHERE
WE SEE THE BIGGEST NEED, AND SO
THAT'S WHERE WE'RE TRYING TO
FOCUS THE WORK OF THE CITY DOES
TO PRODUCE HOUSING.
>> SO IF AS PROJECTED MADISON IS
EXPECTED TO GROW BY ANOTHER
100,000 PEOPLE BY 2050, WHAT
WILL THE HOUSINGSCAPE LOOK LIKE
THEN?
>> WELL, I HOPE THAT WE WILL
HAVE CAUGHT UP IN OUR DEFICIT OF
HOUSING AND THAT WE WILL KEEP
PACE WITH HOUSING PRODUCTION.
IT DOES MEAN THAT MADISON IS
GOING TO BE MORE DENSE AND THAT
WE'RE GOING TO SEE MORE HIGH
BUILDINGS, DUPLEXES, BUT I THINK
IT'S GOING TO ALLOW US TO CATCH