Community Development Alliance and developers show off quality, entry-level homes

More than 100 business and community leaders saw the future for meeting the area’s affordable housing needs during recent special home tours. They came away impressed.

The tours of three model homes were organized by the Community Development Alliance (CDA), the collaborative responsible for implementing Milwaukee’s Collective Affordable Housing Strategic Plan to advance racial equity by providing a quality, affordable home for every Milwaukeean.

The homes were built by Milwaukee Habitat for Humanity, Lange Urban Sustainable Homes (LUSH) and VIA CDC as part of the City’s Collective Affordable Housing plan. The three homes are among 150 homes being built and represent the types of entry-level homes CDA and its partner organizations are building for homeowners of color across Milwaukee.

“We believe that homeownership is a catalyst for dismantling systemic racism and building strong communities,” said Teig Whaley-Smith, chief alliance executive of CDA. “That’s why our work as accomplices with community groups is centered on people and policy. By working collaboratively, we invest in neighborhoods, providing access to quality homes for Milwaukee families and nurturing capacity for Black and Brown families to build generational wealth.”

During the event, attendees also heard from government officials, CDA funders and partners, including American Family Insurance, and affected homeowners of the efforts currently underway and what is on the horizon to ensure safe and affordable housing is a reality for all Milwaukeeans, regardless of race.

American Family supports home ownership for early childhood educators

The 1,116-square-foot home built by VIA CDC in Milwaukee’s Silver City neighborhood on the south side is part of a more targeted project to build homes for early childhood education providers. This initiative is supported financially by American Family Insurance via mortgage down payments for 10 homes.

“American Family and our Institute for Corporate and Social Impact recognize the essential role early childhood educators play in successful learning and development, while also being aware of the economic challenges faced by these dedicated professionals,” said Jan Kittoe, American Family vice president of communications and community engagement. “We’re proud to join CDA in efforts to advance housing affordability and racial equity, particularly with homes earmarked for early childhood educators. Through our investment in them and the Milwaukee community, we strive to help achieve stability in the workforce, leading to higher-quality care for kids, a thriving early care economy and ultimately a pathway to generational wealth.”

The Habitat for Humanity house is the 702nd the nonprofit has built in Milwaukee since 1984. Another gift from American Family provided furnishings throughout the three-bedroom, single-story house in the Midtown neighborhood. Kittoe said the furniture and other items will stay with the house and its new owner.

“Everyone is interested in affordable housing. Our goal is to build attainable housing - one that is cost-effective but doesn’t cut on quality,” said R.J. Lange, founder of LUSH, during a tour of his company’s home. Lange noted that the 500 square-foot living room the group was in has a 17-foot tall, vaulted ceiling and that the well-insulated 2,600-square-foot three-bedroom, two-bath home would have about a $100 monthly heating bill.

Unlike other houses, LUSH creates house elements at its nearby workshop. Those pieces snap together onsite without nails or screws, like building blocks. That means there is no wasted building materials to haul away and the construction is reduced by several months compared to traditional wood frame construction.  

“It’s more sustainable, more affordable, faster, easier, safer and scalable,” added Lange.

Whaley-Smith said new homes - especially entry-level homes - have not been built in the city for about 50 years and that a legacy of racially discriminatory policies and actions prevented Black and Latino families from buying homes. CDA and its partner organizations are trying to correct this by building 100 new homes each year.

Watch this video for more on how American Family Insurance Institute for Corporate and Social Impact is supporting home ownership for Milwaukee's early childhood educators.

“We now have 17,000 Black and Latino families in Milwaukee that are looking for homes that cost $125,000 or less but there's only 1,500 in the market each year - and 40 percent of those are being purchased by investors,” said Whaley-Smith. “We haven't built this type of inventory in three generations and it's time to correct that.”

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About the American Family Insurance Institute for Corporate and Social Impact
The American Family Insurance Institute for Corporate and Social Impact is a venture capital firm and partner of choice for exceptional entrepreneurs who are building scalable, sustainable businesses in a long-term effort to close equity gaps in America. It also recognizes that capacity building and supporting organizations and experts that have been working toward social causes are equally important in making a positive impact within our communities around the country.

About the American Family Insurance group
Based in Madison, Wisconsin, American Family Insurance has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investment and creative partnerships to address societal challenges. We act on our belief in diversity and inclusion by constantly evolving to meet customer needs and preferences. American Family Insurance group is the nation’s 12th-largest property/casualty insurance group, ranking No. 301 on the Fortune 500 list. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance Group also includes CONNECT, powered by American Family Insurance, The General, Homesite and Main Street America Insurance. Across these companies the group has nearly 13,000 employees nationwide.

About the Community Development Alliance (CDA)
At the CDA, we believe that homeownership is a catalyst for dismantling systemic racism and building strong communities. That’s why our work as accomplices with community is centered on people and policy. By working collaboratively, we invest in neighborhoods, providing access to quality homes for Milwaukee families and nurturing capacity for Black and Brown families to build generational wealth. Learn more at https://www.housingplan.org.