Colfax Village Board prohibits sale of twin homes in East View as rentals
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By LeAnn R. Ralph
COLFAX — While two sets of twin homes (four units) in the East View residential development along Dunn Street would be prohibited from being sold as rentals, two other twin homes apparently would not be prohibited as rentals.
John Fraley of Homes by Croix Creek has committed to building five houses in East View and has until September of 2025 to complete the last of the houses, said Lynn Niggemann, village administrator-clerk-treasurer, at the Colfax Village Board’s May 13 meeting.
Fraley is proposing to build two twin homes (four units) on the last two lots on the north end of Dunn Street by the railroad tracks and the old creamery building, she said.
Building the twin homes would require the lots to be subdivided, and Niggemann said she was in the process of determining whether the subdivision would be possible because there are subdivision requirements and timelines set by the state of Wisconsin.
Twin homes also are known as zero lot line homes, and while they are similar to a duplex, the two sides are sold as separate units. A duplex has a single property owner.
Buyers of twin homes sign a building maintenance agreement that covers items such as roof replacement.
The lots in the East View development also would have to be rezoned by the village to a zero lot line zoning designation.
Twin vs. single family
Fraley’s preference is to build the twin homes, but if that is not possible, he would build two single family dwellings on the two lots, Niggemann told the village board.
Fraley would pay for the survey costs, the cost with the state of Wisconsin for subdividing the lots, the rezone, and a certified survey map (CSM). The market for the homes would be for starter homes or retiree homes, she said.
With the lack of affordable housing in Dunn County, this would be a good opportunity, said Gary Stene, village trustee.
Could the Colfax Village Board require that the twin homes built by Fraley not be rental units?asked Anne Jenson, village trustee.
The two lots on the north end of Dunn Street are the last of the lots that the village purchased and offered for free to contractors or people wanting to build a house for themselves.
Developer’s agreement
The developer’s agreement for the lots in East View requires a $2,500 contingency fee and that the dwellings be finished within one year of signing the developer’s agreement with the village.
The developer’s agreement does not include language that prohibits the sale of the new homes to someone who might want to rent them out to other people.
The village’s ordinances also do not contain language prohibiting the owners of residential dwellings in the village from renting them out or from selling their property to someone who might rent them out.
According to state Statute 66.1014, “a political subdivision [town, village, city or county] may not enact or enforce an ordinance that prohibits the rental of a residential dwelling for 7 consecutive days or longer.”
The remainder of that particular statute deals with short-term rentals, such as an AirBnb.
Presumably the owners of the other homes in the East View development could rent out their houses if they wanted to or could sell their houses to someone who wanted to rent them out.
Dunn County recently completed a housing study, which the village declined to participate in, that determined the county will need 3,000 additional residential units by 2040, and that there is a serious lack of rental units or houses available for sale at all income brackets.
Four to three
The Colfax Village Board approved a motion prohibiting John Fraley of Homes by Croix Creek from renting out the twin homes when they are finished and also prohibits Fraley from selling either of the twin homes to one buyer who has the intention of living in one side and renting out the other side.
The village board approved the motion on a vote of four “yes” to three “no.”
Voting in favor of the motion were Village President Jeff Prince, and village trustees Clint Best, Carey Davis and Anne Jenson.
Village trustees Gary Stene, Jen Rud and Margaret Burcham voted against the motion.
It was not clear from the discussion or the motion whether the village intends to alter the developer’s agreement to include the prohibition on Fraley renting out the twin homes or selling the twin homes to buyers who might want to owner-occupy one side and rent out the other side, or whether the village planned to implement a deed restriction on rentals.
It also was not clear from the discussion and motion whether the buyer of a twin home unit would be prohibited from renting out the residence.
In certain situations, homeowners may have a desire to rent their homes, such as if the home owner accepts a job in a different state and must move right away but wants to hold onto the property and rent it out, or if the homeowner takes a temporary job relocation for six months or a year and does not want to sell his or her home.
In addition, it was not clear from the discussion or the motion exactly why the Colfax Village Board was resistant to Fraley renting out the twin homes or selling a twin home to a single buyer who might want to rent out the other unit.
At past meetings, village board members have complained that it seemed as if Fraley was not completing the houses fast enough.
At the time that Fraley had entered into the agreement with the village for five of the lots, the village had been trying for years to get someone — anyone — interested in building houses on the lots.
During the COVID-19 pandemic, businesses of all kinds, including construction businesses, were experiencing difficulty ordering supplies and materials. Because of supply chain disruptions, certain building materials were not available or it took a long time for the materials to be delivered after they were ordered.
The cost of construction also has increased significantly since the pandemic.
Other twin homes
Other twin homes that are proposed to be built toward the south end of Dunn Street in the East View development apparently do not have any restrictions or prohibitions on being rented out.
There are three lots available for multi-family housing and two construction companies interested in the lots, Rosenbrook Construction and KM Construction.
The multi-family lots are not part of the village’s free lots package, and developers will pay the village $10,000 for a lot.
The village board discussed a variety of strategies, including assigning one lot to each developer, and whichever developer paid the $10,000 first for the third lot would have the ability to build on it, or allowing the developers to decide which one would develop the third lot, or perhaps both developers working together to build on the third lot.
The village board did agree that the three lots must be developed by December 31, 2025, even though there was no discussion of a developer’s agreement for those lots.
The Colfax Village Board unanimously approved a motion to offer one lot to each developer, and that Rosenbrook would be given the first offer on the second lot and KM Construction would be given the second offer, and that the two developers could work together on the third lot.
The motion also included the provision that construction must be completed by December 31, 2025.