Milwaukee wants more mid-tier housing. Here`s an approach from two other Midwestern cities

As Milwaukee encourages more middle-tier housing construction, two other Midwestern cities could provide lessons to get it done. Green Bay is helping finance “workforce housing” — targeting people earning 80% to 120% of the area median income. Meanwhile, Des Moines, Iowa, provides tax benefits to developers of “missing middle” buildings — those with two to 12 apartments or condos. Milwaukee Mayor Cavalier Johnson’s administration and the Common Council have taken steps this spring to create more workforce housing and missing middle buildings. Developers say those efforts do too little, while some residents say they’re too favorable to absentee landlords.

Milwaukee’s approach includes financing help

The mayor’s Department of City Development on April 22 announced new guidelines on city help for workforce housing through tax incremental financing districts.

That policy centers on using property tax revenue generated by new apartment buildings to help finance those developments. The rents must be affordable to people earning up to 100% of the Milwaukee area median income — $77,500 for an individual, or $110,700 for a family of four.

The guidelines call for developers to make up front investments and then obtain city funds through annual property tax payments generated over several years by the new buildings.

Developers want the city to provide cash up front, with the firms paying that back through the annual payments. That’s a sticking point between the Johnson administration and developers and some Common Council members — who say the mayor’s approach provides little help...