Another Rice Lake Housing Project Plan Faces Difficult Hurdles

A Rice Lake affordable housing project that had been in the works for years is now at a standstill as the city takes ownership of the site.

The planned project involved a former nursing home on Newton Street. The City of Rice Lake purchased the Heritage Manor property in 2018, and has been working with the nonprofit Movin’ Out to convert the building into an affordable housing complex for years. According to a Rice Lake Chronotype report, supply chain issues and rising construction costs during the Covid-19 pandemic prevented the organization from completing the project.

The Rice Lake City Council approved a third amended development agreement with Movin’ Out for the project in December. The approval was made with the expectation that the organization would pursue low-income housing tax credits for 2025, which it did not do. In January, the city council terminated the contract for the project and took control of the property.

Officials say it’s the third time an affordable housing project in the area has hit a major hurdle or fallen through completely in the last year. The others include the 138 unit Kinnick Development near Tainter Elementary School and the $3.1 million Patriot Acres development near Allen Street and Royal Crest Drive.

City and County officials have been aggressively pursing affordable housing projects in the area as home prices continue to rise and the unhoused population in the region grows. When County officials announced plans to use the Burton Family Trust property for a mixed-use development, they noted that there are about 1,000 open positions in the area but not enough housing options to fill them.

Despite the setback, City officials say hopes for affordable housing at the site are not over. They say Movin’ Out is welcome to return to the project if they pursue the low-income tax credits again, but would not be able to do so until 2026. However, if the organization does not wish to return to the project after putting about $600,000 into it, the city could consider working with another developer.