Resource Center

How Builders Can Partner with Local Towns to Access Low-Cost Lots

Friday, November 7, 2025

One of the biggest challenges builders face today is finding affordable, buildable lots. At the same time, many towns and cities are eager to attract new housing, especially workforce and attainable homes that strengthen local economies and fill community needs.

The good news? Builders can often partner directly with municipalities to access city-owned or discounted lots, leverage local incentives, and create opportunities for both sides. Here’s how to get started, and where to find helpful resources in Wisconsin, Illinois, Minnesota, and Iowa.

Understand the Community’s Goals
Before reaching out to a municipality, take time to understand what the community needs. Every city and town has a comprehensive plan that guides long-term housing, infrastructure, and growth decisions. Reviewing that plan helps you align your proposal with the town’s priorities, whether that’s infill development, affordable starter homes, or revitalizing underused areas.

Tip: Many smaller towns want to grow but lack developer engagement. Showing how your project benefits residents and expands the tax base can make your proposal stand out.

Build Relationships with Local Leaders
Strong partnerships begin with relationships, not transactions. Attend city council or planning commission meetings, introduce yourself to staff, and learn about current challenges or housing shortages. Then, schedule meetings with key decision-makers like:

• The city administrator or planner
• The economic development director
• The mayor or village president

Bring a one-page summary of your company that highlights your experience, project quality, and community focus. Position yourself as a reliable local partner who wants to help the community achieve its goals.

Propose a Win-Win Project
Once you’ve built relationships and identified opportunities, develop a proposal that benefits both sides. You might offer to:

• Purchase vacant or tax-delinquent lots owned by the city.
• Build infill homes that complement the existing neighborhood.
• Commit to specific home price ranges or build schedules in exchange for discounted land or reduced fees.

Be sure your proposal emphasizes community value, local job creation, property tax growth, and improved housing options.

Explore Local Incentive Tools
Many municipalities offer development incentives to encourage new housing. Common options include:

• TIF (Tax Increment Financing): Future tax revenue from your project helps reimburse site prep or infrastructure costs.
• Fee waivers or reductions: Cities may lower or eliminate permit or utility fees for qualifying projects.
• Infrastructure support: Assistance with streets, water, sewer, or sidewalks.
• Land banking: Some cities hold properties specifically for redevelopment or housing initiatives.

Ask about available programs and how your project can qualify.

Follow Through and Build Trust
Once a deal is in place, communication and reliability are key. Deliver your project on time, stay transparent about progress, and uphold quality standards. When you build trust with a municipality, future opportunities often follow.

Regional Resources for Builders
To help you get started, here are key state-level resources for builders in Wisconsin, Illinois, Minnesota, and Iowa.

Wisconsin

• Wisconsin Economic Development Corporation (WEDC) – Supports community revitalization and housing development. www.wedc.org
• Wisconsin Housing and Economic Development Authority (WHEDA) – Offers financing and incentives for housing projects. www.wheda.com
• League of Wisconsin Municipalities – Connects builders with local leaders and planning best practices. www.lwm-info.org

Illinois

• Illinois Housing Development Authority (IHDA) – Financing, tax credits, and support for developers. www.ihda.org
• Illinois Municipal League (IML) – Provides contact information for municipal leaders and planning
  departments. www.iml.org

Minnesota

• Minnesota Housing Finance Agency (MHFA) – Development financing and affordable housing resources. www.mnhousing.gov
• League of Minnesota Cities – Offers local planning and housing guidance. www.lmc.org

Iowa

• Iowa Finance Authority (IFA) – Provides grants and loans for housing development. www.opportunityiowa.gov
• USDA Rural Development – Iowa – Offers programs for site development and construction in rural areas. www.rd.usda.gov

Final Thoughts
Municipalities want to see new housing, but they often need trusted partners to make it happen. Builders who take initiative, communicate well, and align their goals with the community’s vision can unlock affordable land opportunities and long-term growth potential.

Amwood Building Systems encourages our builder partners to explore these relationships. Together, we can continue creating quality homes that meet regional housing needs and strengthen our local communities.