MADISON, WI (SPECTRUM NEWS) — The Urban League of Greater Madison announced a $5 million initiative on Wednesday aimed at helping Black people in the area become homeowners.
The Urban League plans to buy 15 to 17 homes in Madison and sell them to low and moderate income families seeking to become first time homeowners.
“We want to make sure that as gentrification happens in places like South Madison that we keep houses affordable, that there still be some houses around here that regular people can afford,” said Dr. Ruben Anthony, President and CEO of the Urban League of Greater Madison (ULGM).
ULGM will sell the homes to families with no downpayment and interest-only loans. The League will finance the loans for seven years, after that the homeowners will refinance the loan.
“This will give these homeowners an opportunity to have a tremendous financial resource,” Anthony said.
According to Census Data Black homeownership rate nationally is 47 percent. In Wisconsin it is 23 percent according to the National Association of Realtors. In Dane County it is just 10 percent.
“When we talk about homeownership we cannot forget the shameful history of redlining across the country and right here in Madison which dates back to the great depression and the 1930s,” said Satya Rhodes-Conway, Madison's Mayor.
Rhodes-Conway said Black people are turned down for mortgage loans three times more often than white people.
The Urban League in the past has organized programs that help Black Families buy homes. More than 50 families of color in Madison bought homes through the program.
Kimberly Robinson was one of those people. She's been in her Madison home for about 19 years now, her kids grew up there.
“I love it, I can get out there, I do my yard, I plant flowers, you know and it's your home,” Robinson said.
Robinson said if it weren't for the Urban League, she would probably still be living in apartments.
“If you would have asked me at the age of 27, 'Hey Kim at 30 something you're going to be owning your own home' I'd be like 'Okay right.' But dreams can come true,” Robinson said.
The Wisconsin Housing and Economic Development Authority will provide nearly $3.5 million in financing for the project. The City of Madison is contributing $200,000 to help bring down the cost to families. Wells Fargo is finance the remaining $1.5 million.
Tax credits for the initiative are being allocated by National Community Investment Fund, a Community Development Financial Institution based in Chicago.
The loans have a saving and wealth building component to them among other favorable terms and benefits.
The Urban League has purchased several homes already and is renovating them with the help of several local companies. They plan to have several homes available within the next two months and all of the homes sold within the next year.
City leaders say this initiative will help reverse home ownership disparities built over years of systematic barriers.
“We know that over the last 60 years the financial institutions and other barriers have all contributed to preventing Black Americans from obtaining the American dream: Homeownership,” said Sheri Carter, Madison City Council President.
People are eligible for the program with a monthly income of $50,000 to $120,000 for a family of four. Interested people can call the Urban League of Greater Madison at 608-729-1200 and ask for Vicki.
This is also a problem in Milwaukee. A recent NBC news analysis showed the city has the second largest gap in white and Black homeownership percentages, only behind Minneapolis.