Early Childhood Education New Homes Initiative Aims to Provide Affordable Housing in Milwaukee

Milwaukee takes steps towards more affordable housing as the Common Council’s Zoning, Neighborhoods and Development Committee voted Tuesday morning to sell several city-owned vacant lots to be used for the Early Childhood Education New Homes Initiative which aims to provide low-cost homes for early childhood educators. 

The ECE New Home Initiative is managed and funded by the Community Development Alliance and the Local Initiative Support Corporation, who have secured funds to subsidize the construction of 46 homes across Milwaukee that will be reserved for purchase by qualifying early childhood educators, according to Tess Wynn of the Milwaukee Department of City Development. Wynn says the initiative has partnered with five prominent early childhood education centers to place clusters of eight or more single-family homes nearby.

The lots will be purchased from the city for $1 and construction will begin shortly after. The homes will be built by four local developers that have partnered with the CDA and LISC, with construction beginning this summer and continuing into early 2026, according to Wynn. 

“The developers are each building their own floor plan,” said Wynn. “But all the homes will be three bedrooms and one bathroom and just over 1,000 square feet.” 

Buyers will be eligible to purchase these homes if they are employed as an early childhood educator and are under the income limit of $20 an hour, according to Teig Whaley-Smith, Chief Alliance Executive for the CDA. Eligible buyers will be able to purchase the homes for $100,000, with mortgage payments of $750. According to Whaley-Smith, with taxes and repairs added the estimated monthly cost for the homes will be $1,000. 

Whaley-Smith also pointed out that this is the first time that entry-level homes will be built for Black and Latino Milwaukeeans. 95% of single-family homes in Milwaukee were built pre-1968 when racial discrimination was still legal and since then most of the existing houses have been sold to investors, according to Whaley-Smith. This initiative will aim to combat this inequality by providing low-cost homes for members of the community. 

“Our goal is to advance racial equity by providing a quality affordable home for every Milwaukeean,” said Whaley-Smith. 

The CDA already has a waiting list for these homes and a lottery will be done to choose a buyer, with priority for early childhood educators who work in the sponsoring centers of Malaika, Rooted and Rising, United Community Center, Next Door Foundation and Children’s Outing Association.  

The CDA and LISC were able to secure funding through the Wisconsin Department of Workforce, receiving $4.5 million from the Wisconsin Innovation Grant, according to Teig Whaley-Smith. In addition to the grant, Whaley-Smith says the Northwestern Mutual, Zilber Family and American Family Foundations will be contributing to some of the homes, bringing the total investment to around $6 million.  

Whaley-Smith says that with the amount of subsidies, the ECE New Home Initiative will be able to sell these homes for significantly lower than their construction cost of around $250,000. While this seems like a significant investment for 46 homes, Whaley-Smith noted that the effect on the community will be long-lasting.  

“These homes will last for more than 100 years,” said Whaley-Smith, “Typically home ownership changes every 10 to 15 years, so this is subsidized in the home for 10 families, not just one.” 

The initiative aims to keep these homes in community members’ hands rather than investors by restricting the sale of the homes. Whaley-Smith said that buyers will not be allowed to sell their home for 15 years or more unless it is to a family in a similar situation.  

Following Wynn and Whaley-Smith’s presentation, 15^th District Alderman Russell Stamper moved to recommend the resolution for adoption. The motion passed by a vote of five to zero and the full council is set to vote on May 21, according to Milwaukee Journal Sentinel.