Oct. 8, 2026
As Washington County, Wisconsin, grapples with the housing crisis, two unique, locally administered programs are helping families achieve their homeownership dreams.
Like many other parts of the nation, incomes in this part of Wisconsin have not kept pace with soaring home prices. The supply of missing middle housing was limited in the county, which consists of 20 municipalities northwest of Milwaukee and is home to more than 139,700 residents. The median home sale price surged by 19.2 percent from May 2021 to May 2024 to $388,700, while median income increased by only 3.4 percent over the same period.
In 2021, Washington County began work on a housing strategy that directed $10 million in American Rescue Plan Act (ARPA) funds toward housing programs. With this, the county transitioned its planning department into a community development department, hired additional planners and community and economic development staff, and tasked them with the rapid launch of innovative programs.
Working with Washington County Executive Josh Schoemann, planners began shaping what became Next Generation Housing (NGH) and Heart & Homestead Earned Down Payment Incentive (H&H). To understand the multiple variables that affect attainable workforce housing options, staff collaborated with industry experts, including real estate agents, mortgage lenders, builders, developers, financial regulatory organizations, local economic development corporations, and municipal leaders.
They found that solutions had to not only target the housing stock shortage but also help remove financial barriers to homeownership.
Read the Housing Supply Accelerator Playbook to learn how communities across the U.S. are speeding up housing development.
Incentives with integrity
Next Generation Housing launched in 2021 with a goal of creating 1,000 owner-occupied housing units for Washington County’s workforce by 2032. As of this past August, the county had funded 88 townhomes, 22 duplexes, and 75 single-family homes — a total of 185 units.
The program helps fund the construction of housing priced below thresholds that mirror the county’s median income and current market conditions: 40 percent of units priced under $340,000; 80 percent under $360,000; and 100 percent below $420,000.
The program was updated this year to adapt to evolving market conditions, replacing two funding incentives for builders and developers. The new framework, established by the Washington County Executive Committee, replaces previous incentives of a zero-interest, $20,000 loan per owner-occupied dwelling unit, paid back on the unit’s sale, and a $6,000 per unit permit fee, with a $25,000 direct incentive for all new developments. The builder receives the money as a reimbursement after the home’s sale, allowing the community development department to confirm that the sale price meets the program’s requirements. The home carries a 10-year deed restriction, allowing the homeowners to earn 20 percent of the direct incentive amount per year as equity in years six through 10.
The Oaks of Jackson, a 20-acre subdivision with more than 100 owner-occupied homes, is the first Next Generation Housing development in the village of Jackson. Photo courtesy of Washington County, WI.
Ways to Keep the Next Generation of Housing Strong
To protect its $8.25 million investment in Next Generation Housing (NGH), Washington County’s Wisconsin Community Development Department integrated key security measures, backed by research, advice from real estate lawyers and financial regulatory organizations, and risk assessments.
Deed restriction: Since NGH homes come with incentives and are purchased under fair market value, a deed restriction prevents new homeowners from immediately selling the home for profit. It allows resale at fair market value within the first decade of ownership but requires the seller to repay a percentage of the $25,000 incentive to the county at the time of sale. Within the first six years of the deed restriction, the seller must repay the entire amount ($25,000). After that, the obligation is reduced by 20 percent each year. In the case of a foreclosure, the deed restriction would terminate.
Ownership requirement: All homes must be owner-occupied — a requirement recorded in the restrictive covenants of the subdivision, to encourage residents to put down roots in the community.
Local governments have received NGH grants for housing studies, zoning code rewrites, and other planning projects that allow for higher-density housing and further the program’s goals.
These funding strategies are attracting several developers. One, A&N Contracting, received $548,000 to construct 22 single-family homes in the city of Hartford. The company has built a strong partnership with the county that enables transparent communication about the incentive and construction costs. “This partnership underscores our commitment to supporting the diverse housing needs of the community and contributing to the realization of the American dream for many,” said Nate Dziatkiewicz and Tony Monfre, owners of A&N Contracting, in an impact report about the program.
The county has partnered with four additional developers and home builders and designated more than 44 acres for NGH homes.
Giving back to get ahead
The Heart & Homestead Earned Down Payment Incentive (H&H) launched in 2024 in partnership with Economic Development Washington County ( EDWC). It provides qualifying homebuyers with up to $20,000 as a down payment on homes priced under $420,000, as long as the unit is owner-occupied. The program has awarded about $3.59 million to 182 homeowners over the past two years.
Initially, the program received $2.8 million from ARPA funds. Since then, the county has allocated an additional $1 million generated from interest on its investments because of the program’s success and its popularity among residents, real estate agents, lenders, and municipal leaders.
Participation in H&H has few qualification requirements. There’s no age limit, income restriction, credit score minimum, or workplace requirement — and it is not exclusive to first-time homebuyers. Individuals simply apply online during a program funding cycle, are preapproved by a mortgage lender, and pass a background check. If approved, they have 90 days to secure an offer or sign a construction contract. Funds are awarded at closing and secured by a subordinate mortgage.
During the first five years of ownership, H&H recipients earn their incentive through volunteering or donating to certain tax-exempt organizations that serve the county, including the local Humane Society, Big Brothers Big Sisters, the YMCA, and nearby churches and school districts. Anyone living in the household can earn $25 in incentive earnings for every volunteer hour or 70 cents for every donated dollar.
More than 180 families have purchased homes in Washington County through the Heart & Homestead Earned Down Payment Incentive.
“When I found out that we got accepted for the Heart & Homestead incentive, I definitely cried,” says one recipient, Lindsay, in a video promoting the program. “Twenty thousand dollars is, to me, a lot of money to help our family purchase a home.”
The county requires repayment of any unearned amount on resale, deed transfer, or the owner no longer occupying the home as their primary residence. This unique feature builds active community involvement and support of local initiatives.
In the town of Jackson, H&H has had a noticeable positive impact, according to fire chief Aaron Swaney. Through the program, the fire department has received nearly 1,400 volunteer hours, and two H&H recipients earned their incentives in less than two years by volunteering as emergency medical technicians and firefighters. Recipients also have given their time to community events and fundraisers for the department.
“Volunteers are something that we desperately need, and Heart & Homestead is almost a recruitment tool for us,” Swaney says. “They have helped us connect with dedicated volunteers to serve our community, which is a win-win for everyone.”
As of August 2026, H&H generated 22,956 volunteer hours and $138,000 in donations for 87 local organizations.
Planners keep the program on track
Local leaders credit planners for the success of the NGH and H&H programs. Community planners continue to monitor market conditions and the local economy, helping the programs overcome hurdles, adapt to changing housing costs and other demands, and capitalize on market opportunities such as identifying developable land or additional funding sources.
The programs have not only made a direct impact on the Washington County housing market; they also are helping to attract new residents. Half of all NGH homebuyers came from outside the county — leading to increases in consumer spending, the local workforce, and school enrollment.
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