City Council Considers Selling Development Lots to Habitat at $35,000 Each

In a recent workshop held by the Oshkosh Common Council, city officials gathered to discuss the Washington Housing Development, focusing on the financial aspects of right-of-way work for 18 lots designated for future construction. The meeting, which took place on August 12, 2025, revealed a pressing need for funding to cover the costs associated with preparing these lots for development.

City officials reported that the lowest bid for the necessary work came in at approximately $830,000, which translates to just under $46,000 per lot. This figure was higher than anticipated, prompting discussions on how to finance the project effectively. The city had initially estimated selling the lots to developers and Habitat for Humanity at $25,000 each, but given the increased costs, a new proposal suggested a sale price of $35,000 per lot. This adjustment would leave the city with nearly $200,000 to allocate toward other community improvement projects.

Habitat for Humanity expressed interest in acquiring nine of the lots, which aligns with the city’s goal of promoting affordable housing. However, the council members voiced concerns about the implications of the pricing strategy and the potential restrictions it might impose on the project’s equity and ownership outcomes.

Additionally, the discussion touched on the use of American Rescue Plan Act (ARPA) funds, with $75,000 previously allocated for the purchase of the Washington School site. Council members clarified that these funds had already been utilized, leaving no additional ARPA funding available for the current housing project.

As the meeting progressed, council members weighed the benefits of the proposed sale price against the backdrop of rising construction costs and the urgent need for affordable housing in the community. The outcome of these discussions will be pivotal in shaping the future of the Washington Housing Development, as the council prepares to make a decision at their next meeting. The stakes are high, with the potential to impact both local developers and residents seeking affordable housing options in Oshkosh.