MILWAUKEE — More people in Milwaukee’s Metcalfe Park neighborhood are becoming homeowners thanks to a unique program.
The north side neighborhood has struggled for years with a high number of vacant properties. Back in 2006, a partnership was formed between the City of Milwaukee, The Greater Milwaukee Urban League, The Wisconsin Housing and Economic Development Authority (WHEDA) and Madison-based development firm Gorman & Company.
Through tax credits and an investment from WHEDA, Gorman agreed to build 30 single-family homes on vacant lots owned by the city. Gorman then rented them out with the understanding that after 15 years renters could buy those houses, with the rent they have already paid counting as principal toward the sale price.
In recent months, five families have been able to purchase homes through the program. Charlicia “Char” Brown was among the first to buy the home she has been living in for the past 12 years. Brown said it is a wonderful feeling to know she owns a home.
“It feels permanent. It feels stable. Walking around my neighborhood, I am more vested,” said Brown.
Brown said one of her favorite parts of home ownership has been knowing that the rent she paid wasn’t thrown away. The homes that are a part of the partnership are valued at around $130,000, but buyers only pay between $40,000 to $65,000 thanks to partner organizations helping to offset the cost and the rent equity homeowners have paid into over the years.
“Transitioning from a renter to a homeowner is very much a blessing for me because it gave me that sense of accomplishment and that my actual rent went towards something, it counted for something,” said Brown.
As part of the program, potential homebuyers receive financial counseling through Milwaukee-based Acts Housing. The goal is to make sure that buyers are set up to be able to keep their home.
“I had a home-buying coach, people who walked me through the process, told me about credit, helped my build my credit, helped me create a savings plan and create a budget and really learn how to use money wisely,” said Brown.
Eve Hall is president and CEO of the Greater Milwaukee Urban League, an organization that has been involved in the partnership from the beginning. Hall said seeing homeownership grow in the neighborhood will benefit the community.
“A project like this that provides the additional supports, networks, connections, for well-deserving, hard-working individuals, especially in our Black and Latino communities is critical in order to close the gap around equity and income, equity in creating and building assets,” said Hall.
While a total of five homes have been sold so far, more are expected to be sold in the coming years.