WAUSAU, Wis. (WSAW) - A vacant parking lot on the west side of Wausau could soon become much-needed affordable housing.

The Wausau Development Authority Board is reviewing plans to build homes at the corner of Stewart Avenue and 8th Avenue. The proposed development, which would include one, two and three-bedroom units, is located along a bus route and across from UW-Stevens Point at Wausau.

"We're looking at building single-family homes and also doing a rental complex of possibly four to six units of affordable rental apartments in one complex," Tammy Stratz, the city's community development manager said.

The city purchased the lot from the county and plans to use funds from the American Rescue Plan Act (ARPA) to finance the project. However, several steps remain before construction can begin, including zoning approvals and finalizing the design. The city does not have set rental prices yet.

"We want to take a look at once it's built. What does the market hold, and what makes sense for affordability?" Stratz said.

According to the Department of Housing and Urban Development, housing is considered affordable if it costs less than 30 percent of a tenant's gross income. The Bureau of Labor Statistics reports the average hourly wage in Wausau is $27.25, equating to a pre-tax monthly income of $4,360. That would put the affordability threshold at $1,308 per month.

"Wausau needs housing just like every other municipality," Stratz said. "It's hard to find rental units."

The city previously considered another location for the development, but opposition from nearby residents led the council to reject the plan.

Architects are currently drafting design proposals, which will be presented to the city for review. Officials say they are still in the early stages and plan to seek community feedback before moving forward.