$500,000 Grant Will Train Affordable Housing Developers
AK Development and Milwaukee Development Corporation will provide training.
Ariam Kesete in 2024. Photo by Jeramey Jannene.
Two Milwaukee developers have received a combined $500,000 to support affordable housing work in the city. Unlike most housing grants, the funding will be used to train those who are developing the housing instead of funding housing construction.
The Federal Home Loan Bank of Chicago, in partnership with Spring Bank, awarded $250,000 grants to AK Development and Milwaukee Development Corporation through its Community First Developer Program.
The funding, according to a press release, will support paid internships and fellowships that provide hands-on experience in affordable housing development, with participants embedded in active projects across Milwaukee.
AK Development, led by Ariam Kesete, will use its grant to fund three paid interns who will gain exposure to the full development cycle, including predevelopment planning, financing coordination, construction oversight and community engagement.
“This investment allows us to deepen our impact on two levels,” said Kesete in a statement. “We’re advancing critical housing projects while creating structured, real-world learning opportunities that build confidence, expertise and leadership capacity within the affordable housing field.”
AK, with county backing, is currently developing an affordable housing complex in South Milwaukee. According to the announcement, those funded by the grant will work on projects across Milwaukee, including mixed-income redevelopment initiatives, workforce housing communities, transit-oriented development along the Martin Luther King Jr. Drive corridor and historic revitalization efforts that integrate tax credit financing and community partnerships.
Milwaukee Development Corporation (MDC), an affiliate of the Metropolitan Milwaukee Association of Commerce, will use its award to support four development fellows gaining experience across multiple phases of real estate development, including underwriting and financing, predevelopment due diligence and construction coordination.
Fellows will participate in redevelopment initiatives such as the transformation of a former hospital into senior housing, along with additional workforce housing efforts supporting neighborhood revitalization.
“This funding expands our capacity while mentoring the next generation of developers through active projects,” said Pat O’Brien, MDC president. “Hands-on experience in real projects builds the skills needed to strengthen Milwaukee neighborhoods over time.”
MDC is currently pursuing the conversion of the former Milwaukee County City Campus at 2711 W. Wells St. into 124 affordable senior apartments. It won low income housing tax credits in the 2025 funding round from the Wisconsin Housing and Economic Development Authority to enable the project.
Spring Bank, based in Brookfield, accessed the funds through FHLBank Chicago’s Community Investment programs. The Brookfield bank uses secured loans, known as advances, to provide liquidity for community lending that supports housing and economic development in Milwaukee and surrounding communities.
“At Spring Bank, our partnership with FHLBank Chicago helps us respond to local needs with consistency and focus,” said Heather Nelson, bank president and CEO. “The Developer Program allows us to invest in emerging leaders while supporting projects that will benefit Milwaukee neighborhoods for years to come.”
The Developer Program was introduced in 2022 at the recommendation of FHLBank Chicago’s Community Investment Advisory Council. Rather than directly financing construction, it is aimed at strengthening the development workforce behind affordable housing projects — a growing need as deals increasingly rely on layered tax credits, public subsidies and complex financing structures.
Since launching the Developer Program in 2022, FHLBank Chicago has awarded $12 million across its district to expand career pathways and strengthen long-term affordable housing capacity.
“Expanding the supply of affordable housing requires more than financing—it requires skilled developers who can move projects from vision to completion,” said Katie Naftzger, senior vice president and community investment officer at FHLBank Chicago. “Through partnerships with members like Spring Bank, we are investing in the next generation of affordable housing professionals across Illinois and Wisconsin.”
The Federal Home Loan Bank System is a network of 11 congressionally chartered, member-owned regional banks that provide low-cost loans — known as advances — to financial institutions to support mortgage lending and community development. The banks raise money by issuing highly rated bonds, then lend those funds to member banks at a modest spread, generating net income. By law, at least 10% of that annual profit must be directed to affordable housing and community investment programs.
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