The City of Whitewater is getting creative on housing affordability. In April, the Whitewater Common Council approved Stonehaven Development, a 14-lot, owner-occupied single-family development on Bluff Road.
They accomplished this by approving a structure that combines Tax Increment Financing with a small, short-term revolving loan fund to make new construction work at a price point the market has struggled to deliver.
This project uses existing infill lots for the project. The design addresses a critically identified need for the city: single-family owner-occupied housing. Currently, only about 30% of the current Whitewater housing stock is owner-occupied.
The target price for a home is $330,000, with a maximum sale price not to exceed $350,000. It is a structured effort to create attainable, owner-occupied housing with defined limits, financing tools, and safeguards. The developer’s goal is to provide quality new construction at a price point difficult to find in today’s market, while delivering a functional layout, modern finishes, and the features buyers want in a long-term home.
Stonehaven development will be the home of these new ranch homes. Each home will offer 3 bedrooms, 2 bathrooms, an attached 2-car garage, and a full basement. The homes are expected to be approximately 1,456 square feet on the main level, with the basement providing additional space and future potential for homeowners if they choose to finish it later. Each home will include a full appliance package (Oven/range, refrigerator, dishwasher, microwave, washer, dryer), a concrete driveway, sidewalks, a patio, and dirt/seed finished landscaping.
What makes this project especially meaningful is the collaboration behind it. This was truly a partnership between Stonehaven Development and the City of Whitewater. A lot of work went into structuring a model that could help make new construction more attainable for buyers while also supporting the community’s housing goals. We all should be very grateful for the time, effort, and support the city has put into helping bring this project to life. This is about using the existing municipal tools differently to support attainable homeownership, add tax base, and get new housing on the ground.
After much review and discussions the city staff along with Ehlers, the financial advisor, is utilizing a short-term revolving loan fund, funded by an internal fund transfer, to assist the developer in financing the project. This is something of a pilot program for the City of Whitewater. If the fund is successful, the city could choose to utilize this model again in the future.
To further understand the involvement of the city and the resulting plan of both the project and the finances involved, I have included links to the Press Release issued upon the approval of the project.
Regarding the basics on the project: https://www.whitewater-wi.gov/article/2836931
Regarding the financing:
https://www.whitewater-wi.gov/article/2837561
The city of Whitewater acted to take the step to help provide the needed housing for the city residents. It is this type of action and partnership between municipalities and builders/developers that is going to help our communities move forward in developing the much needed housing.
The developer, Tim Vandeville Jr, is partnering with Wisconsin Homes, Inc. to bring Wisconsin-manufactured, modular homes into the project, with local contractors handling site preparation and installation.
Tim has stated that what makes this project especially meaningful is the collaboration behind it. “This was truly a partnership between Stonehaven Development and the City of Whitewater. A lot of work went into structuring a model that could help make new construction more attainable for buyers while also supporting the community’s housing goals. We are very grateful for the time, effort, and support the city has put into helping bring this project to life”.
An important part of this project is also the partnership with local contractors and housing partners who are helping bring these homes to reality. As a developer, it is important to build strong partnerships. Stonehedge is proud to be working with Wisconsin Homes, Tanis Construction, Southern Lakes Heating & Plumbing, and Lueder Electric. Having strong, trusted partners involved is a major part of making this model work and makes it exciting to highlight the team effort behind these homes.
The development agreement includes protections for the city, including a personal guarantee signed by the developer, as well as potential claw back of the parcels if the project does not move forward as planned. There is also a cap on the developer fee and the real estate commissions. Deed restrictions will be in place to ensure the homes remain owner-occupied for the foreseeable future.
After getting feedback from the Common Council, the initial draft was revised and includes an interest rate being paid by the developer, to ensure the city’s taxpayers earn a return.
The city took this step because the private market has not produced an adequate supply of owner-occupied housing in our city for the past several years. The public-private approach being taken is vetted, short-term, and similar with models being utilized in other communities to address the statewide shortage in housing.
We continue to hear about this need from local stakeholders. Those stakeholders include the school district, tech and four year higher education institutions, businesses both large and small, local realtors, the general public, and more.
The current expectation for delivery is to have the first homes ready for sale in Summer 2026, with the first four to be ready by August and the remaining homes to follow.
This project is a perfect example of how we can develop the needed housing when there is partnership between the parties involved. Hopefully this project is the beginning of more to come.
