City Will Boost $19 Million Midtown Homeownership Initiative
Effort aims to revitalize central city neighborhood, maximize public investment.
A Habitat for Humanity project on N. 6th Street. Photo taken by Graham Kilmer in 2023.
Using tax incremental financing (TIF), the City of Milwaukee will provide $2.34 million to boost a $19.2 million homeownership initiative in a targeted area.
The funding will help fund the construction of 20 duplexes and 34 single-family homes on vacant lots in the Midtown neighborhood on the city’s near northwest side.
The funding will be targeted in an area generally bounded by W. North Avenue, W. Lisbon Avenue, N. 22rd Street and N. 27th Street.
The city’s funding is one of several funding sources that will boost the effort.
The primary funding source for the $10.7 million duplex component, to be built by Emem Group, is low-income housing tax credits. Additional funding will come from Milwaukee County’s American Rescue Plan Act grant, tax-exempt bonds, and federal HOME funds allocated by the city.
Each unit in the duplexes will have three bedrooms. As a requirement of the tax credits, the houses will be leased for 15 years and then sold. The duplexes are to be completed by the end of 2025.
The single-family homes will be built by Milwaukee Habitat for Humanity. The $8.5 million project is a continuation of Habitat’s longstanding effort to develop more than 100 homes in the area. Other funding sources including American Rescue Plan Act funding from the city and county, philanthropic support, material donations, volunteer labor and sales proceeds. Future owner occupants must complete financial counseling and work on the home’s construction.
The Habitat homes are to be completed in phases by 2027.
Using a developer-financed TIF district, the city will harvest increased property tax revenue from a cluster of 130 properties to make its contribution. The nonprofit Community Development Alliance will initially front the capital to the development and be repaid the funding only if property tax revenue increases beyond the current base value. The repayment is to occur, with 2.5% interest, by 2049.
The current value of the parcels is $4.4 million. Projections attached to the TIF plan estimate that the new homes will add $6.5 million in new value to the district.
The board of the Redevelopment Authority of the City of Milwaukee is to review the plan on Thursday afternoon. The Common Council will also need to approve the proposal.
Midtown Homeownership Initiatve TIF map. Image from City of Milwaukee.
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