NOW

Milwaukee County Executive David Crowley (far left), Gigi Dixon, head of external engagement for Wells Fargo, and Milwaukee Mayor Cavalier Johnson, hold up a $7.5 million ceremonial check from Wells Fargo. The money will be used to boost homeownership among Milwaukee residents of color.

MAREDITHE MEYER

$7.5 million Wells Fargo housing grant will fund home acquisition, down payments, counseling

By Cara Spoto, staff writer

A $7.5 million grant from Wells Fargo to boost homeownership among Milwaukee families of color will be spent on acquiring homes, down payments and financial counseling for would-be homeowners.

The donation is being done through the San Francisco-based company’s Wealth Opportunities Restored Through Homeownership initiative, a $60 million national effort to address systemic

BY THE NUMBERS

barriers to homeownership for people of color. Milwaukee is just one of eight markets across the U.S. to receive a WORTH grant.

Teig Whaley-Smith, chief alliance officer of the Community Development Alliance, and Michael Gosman, president and chief executive officer of Acts Housing, will lead the effort, which aims to create 5,000 new homeowners of color in the city by the end of 2025.

The first $2 million of the

The proposed NorthSouth Bus Rapid Transit route along 27th Street in Milwaukee County would cost $148

MILLION

WORTH grant will be used to leverage a total of $11 million to acquire 100 homes per year, said Whaley-Smith.

As part of the WORTH initiative, the CDA has outlined several strategies: Acquire and rehab roughly 100 properties that would otherwise likely be owned by investors; scale homebuyer counseling and down payment systems to support 1,000 families of color per year by growing these systems 10% per year; maximize existing inventory systems by producing 75 starter homes available each year for families of color; and advance other supportive systems that help increase homebuyer success rates.

According to U.S. Census data, Milwaukee has the second lowest homeownership rate of major cities in the United States. White homeownership is at about 56%, Latino homeownership is at 38% and Black homeownership is at 27%.

Future strategies will focus on reducing Milwaukee’s homeownership gap through down payment assistance and converting vacant lots into entry-level homes.

During a press conference announcing the funding, Gigi Dixon, head of external engagement for Wells Fargo in North Carolina, pointed to Rae Johnson, who became a new homeowner in 2020, thanks to Acts Housing. The press conference took place just before Acts Housing’s Neighborhood Table 2022 fundraiser, celebrating the more than 3,214 families the nonprofit has helped purchase homes over the past 26 years. Acts helps prospective homebuyers in Milwaukee and Beloit who have income, credit, language and other barriers by providing financial and homebuyer coaching, real estate brokerage services, rehab coaching, loans and grants and post-closing services.

Speaking after the event, Johnson said she was happy to see Wells Fargo stepping up to address racial inequality in the housing market.

“I like that they are recognizing their history and the roles they and other companies played in literally blocking people out of the housing market, and (they) are doing something about it,” said Johnson, who is the first homeowner in her family.

“It feels really humbling,” she said of being a homeowner. “We didn’t grow up with a lot of financial literary so just knowing that I am creating this financial legacy for my 12-year-old son is reassuring.” n