In a recent government meeting, officials discussed innovative strategies to address housing affordability in Milwaukee, particularly for low-income residents. The conversation highlighted a unique model where a nonprofit organization owns the land while homeowners lease it, allowing them to avoid property taxes on the land itself. This arrangement has been beneficial for residents, as they only pay taxes on their homes and improvements.

The organization aims to serve individuals earning around 40% of the Area Median Income (AMI), targeting homes priced around $75,000. To achieve this, they provide affordability subsidies, significantly reducing purchase prices. A notable example shared involved a three-bedroom unit initially priced at $125,000, which was subsidized down to $80,000, making it accessible for a buyer earning $15 an hour.

City support has been instrumental, with a $200,000 grant repurposed from an expired Tax Increment District (TID) fund to support affordable housing initiatives. Philanthropic contributions have also played a crucial role in sustaining these efforts.

The meeting also addressed the challenges of finding suitable properties amid a housing shortage. Officials noted collaboration with established developers in Milwaukee, who are incentivized to create affordable units. The nonprofit's model includes a resale cap, limiting appreciation to 1.25% annually, which helps maintain affordability for future buyers.

Additionally, the organization is expanding its focus to include duplexes, allowing homeowners to potentially generate rental income while adhering to affordability guidelines. The discussion emphasized the importance of providing ongoing support and training for new landlords to navigate tenant relationships and property management.

Overall, the meeting underscored a proactive approach to tackling housing challenges in Milwaukee, combining community engagement, financial support, and innovative housing models to foster long-term affordability and stability for residents.