County Would Fund Three Suburban Affordable Housing Developments

Rendering of 17-unit affordable housing development at 4800-4818 N. Santa Monica Blvd. Rendering by Zimmerman Architectural Studio.

The Milwaukee County Board’s Committee on Finance provided a critical first approval to funding for three affordable housing projects in county suburbs.

The proposal would have the county support developments in Whitefish Bay, South Milwaukee and Brown Deer. The county would contribute a total of $6.6 million to the projects, which will yield a combined 133 units of affordable housing, as Urban Milwaukee has previously reported.

The county’s Housing Division plans to fund these projects, in part, using money the county already set aside for suburban affordable housing projects. In 2022, county officials earmarked $15 million in federal funding from the American Rescue Plan Act (ARPA) to support the county’s effort to tackle segregation and to achieve equity in Milwaukee County.

Historically, many suburban communities have been resistant to affordable housing projects. If the board agrees to fund the projects, the county will have supported projects in five suburban municipalities.

The county would only be providing a portion of the financing for the developments. All three developers are working on bringing together a stack of grants, tax credits and public funding for their projects. Housing Division Administrator James Mathy noted that, like all other housing, it has gotten increasingly expensive to develop affordable housing.

The committee unanimously voted in favor of funding the three projects. The proposal will go to the board later this month for final approval.

Whitefish Bay

In Whitefish Bay, Spoerl Commercial is attempting to develop 17 units of affordable housing at 4800-4818 N. Santa Monica Blvd. The site, at the northeast corner of N. Santa Monica Blvd. and E. Hampton Rd., currently has three structures that will be torn down and replaced with a three-story apartment building.

“This one marks, Milwaukee County’s first affordable housing development in Whitefish Bay, and certainly the first investment we’ve made in that community,” said Mathy to the Finance Committee Thursday.

The county would provide $2.9 million in ARPA funds and $232,329 in federal Home Investment Partnership Program (HOME) funds to assist with financing for the project.

Sup. Peter Burgelis said the per-unit cost for the development was “crazy expensive” and questioned the division’s support for the project.

“I get it, we want to have affordable housing everywhere,” Burgelis said. “But if we can help a dozen people somewhere else, instead of one person in Whitefish Bay, that’s something that this board really has to consider.”

Mathy responded that it is “extraordinarily expensive” to develop real estate in Whitefish Bay and explained the overarching policy goal of developing affordable housing in the sub

“The available land in Whitefish Bay, there really isn’t any, sites are going for, in excess of $1.3 million,” said Brian Spoerl, founder and managing director of Spoerl Commercial, adding that the total budget is $5.75 million and land and demolition figure heavily into the project cost.

Because it is a prominent corner at the entrance to Whitefish Bay, “They want it to look nice,” Spoerl said. So the building will include brick and many other expensive materials that are not as often found in affordable developments, he said. The developers are going after low-income housing tax credits and loans from the Wisconsin Housing and Economic Development Authority (WHEDA) to support the project, as well.

“So, the idea, is to take individuals that don’t typically have access to high-opportunity neighborhoods, different school districts and to be able to have housing options like this available,” Mathy said.

South Milwaukee

Ariam Kesete, leader of A.K. Development is working to build a 62-unit apartment building at 2318 10th Ave. in South Milwaukee, with all the units rented at affordable rates. In addition, 12 to 13 units would be set aside for youth aging out of foster care.

The total project cost is approximately $17.5 million and the county is considering supporting the project with $2.5 million in HOME funds.

Kesete has previously worked as a care coordinator for Wraparound Milwaukee, which helps youth with mental and behavioral health, she told the committee, and saw firsthand the role that inadequate housing played in families’ lives. She said there is “a huge need for affordable housing and workforce housing within South Milwaukee.”

The project developers are also going after low-income housing tax credits.

Brown Deer

Jewish Family Services, JFS, is working on a project at 4114 W. Woodale Ave. in Brown Deer that would provide 56 units of supportive affordable housing.

The building would have 14 units set aside for people that are homeless or at risk of becoming homeless, said Dan Fleischman, president JFS Housing. Those individuals will be referred to by the county’s Department of Health and Human Services (DHHS) and the units will have section 8 housing vouchers attached to them — to subsidize some of the rent for the apartment.

The Housing Division is proposing supporting this project with an additional $1 million in HOME funding after awarding $2 million in ARPA funding earlier this year in 2022.

The project’s financial package relies on low-income housing tax credits, county funding, Federal Home Loan Bank funds and private philanthropy.