APPLETON (WLUK) -- Outagamie County has made plans to spend $14.9 million in federal COVID-19 relief funds, $3.5 million of which will be put towards affordable housing.

"If you're making $15 an hour, half of your disposable income -- half of it -- is going to housing," said Outagamie County Executive Tom Nelson. "We have a big problem."

Nelson planned extensively for the most recent phase of the American Rescue Plan federal spending. He said inflation and housing costs are the reasons for the crisis.

"The top issues facing people right now, and has been for several years, are the same issues where you're seeing spiking increases in costs," Nelson said, "whether it's housing or workforce development or childcare."

Appleton Housing Authority has been involved in the planning of the spending. Executive Director Deb Dillenberg said the spending will go towards creating more living spaces.

"We don't have enough units within Outagamie County or the city of Appleton to assist those individuals and families that need affordable housing," she said. "So, that's part of that crisis."

Nelson said COVID is partially to blame for the housing issues.

"Two years ago, were we facing a housing crisis?" he asked. "We weren't in a good spot, but we certainly are right now."

Nelson said Outagamie County in particular has a bigger housing problem than the surrounding counties. With the grant money, upgrading existing units will be on the agenda for the Appleton Housing Authority.

"That's equally important as developing new housing because you don't want to lose any of the units that you have," Dillenberg said.

Last year, Outagamie County gave 139 grants to businesses and nonprofit organizations. The rest of the spending announced Aug. 9 will address childcare costs, mental health services and county projects. Focus groups and meetings with stakeholders, small businesses and families are part of the preparation.

In all, the county received $36 million in ARPA funds. The deadline for spending the money is Dec. 31, 2026.