Photo by Alena Mozhjer
Milwaukee Neighborhood
For many, it may feel like the COVID-19 pandemic and its most visible consequences are in the rearview mirror. However, even before the pandemic, many Wisconsin renters were struggling. And for those who relied on pandemic-era Federal funding sources to help pay their rent, that challenge continues today. Fortunately, in Wisconsin, we have organizations that are ready and able to help these residents in tough times.
The underlying causes of increased rent burden are familiar. We see them in the headlines: increased cost of food and necessities, inflation outpacing wages, and rent expenses at an all-time high. When you combine this with the fact that the average monthly household income of many renters is just over $20,000, that rent becomes difficult or impossible to pay.
I understand these issues through my work as executive director at Urban Economic Development Association of Wisconsin, Inc. (UEDA) and a project I help convene, the Milwaukee Rental Housing Resource Center. I also serve as a board member for CommonBond Communities—a nonprofit that has been developing vibrant, affordable housing communities in the Midwest for more than 50 years—and have seen residents facing these challenges firsthand.
But I have also seen how incredibly effective our state and nonprofit organizations can be when given the opportunity and support necessary to meet the needs of low-income Wisconsin residents.
Providing Rent Support
For example, last year, through a $1 million grant from the Wisconsin Department of Administration, CommonBond was able to provide direct rental support to 755 residents, ensuring they were able to stay stably housed. It’s easy to see this as just a number. This is 755 of our neighbors. Our data show that the average settlement amount for evictions is $2,000. Considering the grave impact that eviction can have on an individual or family, this is not a large sum of money. For many residents, eviction comes as the result of a single setback, such as the loss of a job or an unexpected medical bill.
Simply put, temporary rent assistance funds prevent eviction, and this leads to more long-term, stable housing for residents.
In recent years, CommonBond’s Wisconsin-based communities have not seen the same level of housing stability success and reduction in eviction that we have tracked in other Midwestern states. I believe that trend is set to turn around, however, thanks in part to greater awareness of our country’s housing challenges and a series of historic housing bills that passed in Wisconsin this summer.
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The bipartisan legislation recognizes the critical need for housing in our state, making $850 million available to address the 120,000 rental unit shortage. It also recognizes that our state’s housing agencies and nonprofits are well-positioned to put this funding into action effectively and efficiently. The organizations in our state share strong connections, and we have a history of successful collaboration. Pandemic-era funding demonstrated the power of resources and partners coming together, and these bills are designed to repeat that success.
Supporting eviction prevention—through legislation and through contributions to nonprofits like CommonBond—is not only a moral issue; it is simply sound economics. Ernst and Young conducted a third-party evaluation of CommonBond’s approach to affordable housing. Unique to their approach is a suite of wraparound services and educational resources available to all residents. The study concluded that for every dollar we invest in eviction prevention, society saves $7.00. A healthy and functional city and state must invest in housing for all residents.
Now is the time to make that investment in Wisconsin. You can participate in this important work by advocating to your elected officials about the importance of rental assistance, by supporting nonprofit housing service providers like CommonBond, or simply by reaching out to a friend or neighbor who might be struggling with rent. There are resources available to assist those in need.
Kristi Luzar is CommonBond Communities board member and Executive Director at Urban Economic Development Association of Wisconsin, Inc. (UEDA).
