Gorman & Company Empowers Low-Income Renters Through Innovative Homeownership Initiative

MILWAUKEE, Wisc. (Jan. 4, 2023) – In a groundbreaking move to promote homeownership and empower low-income residents, Wisconsin-based developer Gorman & Company is set to sell 30 single-family homes previously used as rental properties to its residents in Milwaukee. This homeowner initiative, in collaboration with nonprofit Acts Housing, aims to provide residents with a tangible path to homeownership, breaking barriers in traditionally underserved communities.

Gorman & Company, known for its significant contributions to affordable housing developments, especially through Low-Income Housing Tax Credit (LIHTC) initiatives, has committed to selling single-family homes constructed as part of this initiative to residents after the LIHTC 15-year compliance period, which began in 2007.

As part of the collaboration with Acts Housing, three homes have closed in 2023 and the remainder will be closed in 2024. This homeownership initiative is set to continue over the next 12 years, which will include eight more phases of LIHTC housing within northside neighborhoods of Milwaukee, totaling over 200 homes that will be sold to qualifying residents.

This homeowner initiative significantly increases black homeownership on the north side of Milwaukee. The lower purchase price of these homes allows the residents to realize instantaneous equity upon purchase and significantly decreases their monthly housing payment. By leveraging the equity accumulated through LIHTC investments, residents have the opportunity to purchase homes at a fraction of their market value, providing residents with built-in equity and a more affordable path to homeownership.

To address potential skepticism and foster trust within the community, Gorman & Company enlisted Acts Housing to educate residents about the opportunity and provide essential support services. By dispelling misconceptions, such as the belief that a 20% down payment is required to buy a home, the collaboration aims to ensure that residents are informed and empowered to make sound financial decisions.

Deatra Kemp, Vice President of Programs for Acts Housing, emphasized the transformative impact of the initiative.

“If I could get half of those people to convert (to homeowners), that will statistically change homeownership rates in Milwaukee,” Kemp said.

Ted Matkom, Wisconsin Market President for Gorman & Company, expressed the company’s commitment to the initiative.

“We are proud to be involved in a project that ultimately increases homeownership rates on the north side of Milwaukee and provides built-in equity for each homebuying resident,” Matkom said.

As this homeownership initiative unfolds, Gorman & Company and Acts Housing will collaboratively seek to streamline the process and address misinformation, contributing to a positive and transformative impact on Milwaukee’s housing landscape.

About Gorman & Company: Gorman & Company revitalizes communities through innovative housing partnerships with municipalities, governmental organizations, and nonprofits. They specialize in affordable and workforce housing, and revitalization efforts through collaborative partnerships. Headquartered in Wisconsin, and founded in 1984, Gorman has been recognized as one of the nation’s top “Affordable Housing Developers” by Affordable Housing Finance magazine for more than a decade. Learn more about their diverse portfolio of national projects on their website.