Milwaukee's first land trust home is hitting the market
MILWAUKEE (CBS 58) -- Milwaukee's first land trust home is now complete and available for purchase. Officials say this is an opportunity to expand affordable homeownership options in the city.
Many families earning less than $50,000 per year have a difficult time attaining homeownership. Milwaukee's Community Land Trust hopes to change that.
"Housing is a fundamental human need for people to reach their full potential," said Joanna Bautch, VIA CDC executive director.
The first land trust home was unveiled Thursday. A ribbon cutting was held to mark the occasion. The home located at 2025 South 25th Street is a three-bathroom house on the near south side. The project is a $227,000 investment and will provide the chance for a family to purchase it for $80,000, well below market value.
Home ownership rates are declining, and Black and Brown families are most impacted.
"Since the 60's, Black and Latino homeownership rates in Milwaukee have been trending downward. There's been some improvement as of late but historically we're worse off than we were in the 60's," said Lamont Davis, Milwaukee Community Land Trust executive director.
What is a Community Land Trust?
A Community Land Trust (CLT) is a non-profit organization that purchases and manages land in the interest of the community. The Milwaukee Community Land Trust (MCLT) uses public and private subsidies to purchase and rehab homes in order to sell them at affordable rates.
The benefit of CLT homes is that they are permanently affordable, regardless of what happens to the housing market in the neighborhood. When someone buys the house, they will own the home while the MCLT will retain ownership of the land. The MCLT will manage the land and ensure it is not sold again, preventing low-income families from being priced out due to gentrification.
"We're able to take the price of land out of the equation and we're just selling the house and we're going to steward the land forever," said Davis.
The project is a collaborative effort with VIA CDC's Turnkey Program. "VIA's mission is to be a partner in building strong, healthy neighborhoods where all of us can thrive. This home is a product of those values," said Bautch.
Next year, VIA will focus the Turnkey Program on the development of five new homes on vacant lots throughout Milwaukee's near south side.
"This is a great moment for Milwaukee," said Davis.
Officials say expanding affordable homeownership opportunities will help reduce crime and increase neighborhood values. "This is a great opportunity for folks who are going to traditionally be renters to become homeowners," said Davis.
How is the funding being provided?
The $227,000 investment into this project is made possible through several sources of funding, according to Davis. Housing and Urban Development played a role in financing some of the project. Mayor Cavalier Johnson says some of the funds are from tax incremental financing, and the city supported the needed subsidies.
"In this time of inflation and high prices and things like that, this home will go to a Milwaukee family helping to stabilize this neighborhood and it will do that for less than what I purchased my family's first home for six years ago," said Mayor Johnson.
The home on 25th Street will go on the market next week. Officials expect a family to be moving into the home early next year. They say they've already had interest and applications should be rolling in soon. Potential buyers can click here for more.