South Milwaukee Affordable Housing Project Gets County Funding

Milwaukee County plans to put $2.5 million into a housing development in South Milwaukee that will create 82 affordable housing units.

The project is the redevelopment of the former Bucyrus campus, 1100 Milwaukee Ave. into new commercial and residential real estate by two firms, Scott Crawford Inc. and J. Jeffers & Co.

The county set aside $15 million of its federal American Rescue Plan Act (ARPA) grant to support affordable housing projects in county suburbs and partnered with the Community Development Alliance (CDA), an affiliation of local community development funders, to solicit and review proposals. The funding is being disbursed in two rounds, with $12 million in the first and $3 million in the second.

The county has already awarded $6.5 million to three affordable housing projects in Wauwatosa and Brown Deer that will create 129 units of affordable housing.

The Bucyrus project in South Milwaukee will have 92 residential units, under the latest plans, and 82 will be set aside for families making roughly $50,000 or less a year. Out of those affordable units, 19 will be reserved for poorer families and individuals and they will be rented at $650 a month.

Along with the ARPA funds, the project includes a stack of financing sources that includes $500,000 in Community Development Block Grant (CDBG) funds from the county’s Department of Health and Human Services (DHHS) and approximately $1.5 million in low-income housing tax credits (LIHTC). The inclusion of the LIHTC funding means the affordable housing units will be rent-restricted for at least 30 years.

“The Bucyrus development will feature floor-to-ceiling windows, skywalks, lofted ceilings and energy-efficient appliances, with the plan to pursue LEED certification. On-site amenities will include an art alley, a dog walk, a fitness room, laundry units and a business center,” according to a statement released by CDA and the developers. “Potential community-based commercial uses could include health services, higher education/workforce development, small business development, childcare and grocery options.”

The Bucyrus Steam Shovel and Dredge Company moved to South Milwaukee in 1893 and was the largest employer in the city for more than 100 years. Caterpillar bought the company in 2011 and shut down manufacturing operations at the main plant in 2016.

“Our teams bring a well-defined reimagination to the former Bucyrus campus, and we’re proud to be building upon existing neighborhood assets in South Milwaukee,” said Que El-Amin, president Scott Crawford Inc. “We want to thank Milwaukee County and South Milwaukee for supporting a strong collaboration with J. Jeffers & Co. to enhance broad economic mobility measures and quality of life for residents.”

The effort to fund affordable housing developments in suburban communities in order to increase the housing mobility of Milwaukee residents, specifically Black residents and other residents of color, that have been historically held back by discriminatory housing practices. The suburban housing projects are one part of larger push by the county in 2022 to fund housing projects. Funding was recently approved for a homeownership project in King Park and investment in a housing fund aimed at taking on predatory real-estate investors.

Teig Whaley-Smith, the chief executive of the CDA, said the Bucyrus project advances racial equity in Milwaukee by creating new affordable housing options outside the City of Milwaukee.

“Ultimately, these rental homes enable individuals seeking a high-quality rental home to access one, which we hope builds their financial foundation and leads to them purchasing a home in South Milwaukee,” he said. “Homes, in all their forms, build strong neighborhoods and strong communities. We’re thrilled to be partnering with Scott Crawford Inc. and J. Jeffers & Co. in this critical work.”