Down payment assistance: 175 homeowners helped in 2025; 2026 proposal cuts appropriation to $600,000

Mark (NIDC) briefed the committee on the Milwaukee Home Down Payment Assistance Program, which offers forgivable grants up to $7,000 to help residents purchase their first homes. He reported that year to date 175 new homeowners received grants and that $1,098,100 in grants were awarded through 2025.

Staff said 64% of participating families purchased within the CDBG (Community Development Block Grant) area. The program is administered by three housing agencies (Axe Housing, Housing Resources Inc., and United Community Center), and staff said the 2025 funding included an initial $600,000 plus carryover, ARPA dollars and a TID closeout that increased available funds. The executive budget recommends $600,000 for 2026.

Committee members asked how the $5,000/$7,000 award levels were determined; staff said those amounts align with what other lenders and programs have offered and that the $7,000 award applies within the CDBG area while $5,000 is citywide for most other cases. Committee members asked whether the grant can be combined with other down-payment assistance — staff confirmed it can.