Governor Doyle Announces Over $4 Million for New Neighborhood Housing Initiatives

New WHEDA Programs Focus on Developing Neighborhoods, Increasing Home Ownership Among African Americans

MILWAUKEE - Governor Jim Doyle today unveiled an investment of over $4 million for new economic development initiatives aimed at developing Wisconsin's neighborhoods and increasing Homeownership through the Wisconsin Housing and Economic Development Authority (WHEDA®).

"My Affordability Agenda is focused on ensuring that everyone has the opportunity own a Home and enjoy all the good things in life that Wisconsin has to offer," Governor Doyle said. "Every family in Wisconsin should have the opportunity to live out the American dream of owning their own Home. Through these new programs, we will put more hardworking Wisconsin families on the path to Home ownership."

While visiting the Metcalfe Park neighborhood, the Governor announced a new lease purchase program that will help increase Homeownership for the neighborhood. WHEDA is providing over $4 million in financing for the project.

Through a partnership with the Milwaukee Urban League and WHEDA, Gorman & Company is building 30 pre-fabricated Homes on vacant lots in Metcalfe Park where residents will be able to rent the Homes for 15 years and then purchase them at the end of the 15th year. The Milwaukee Urban League will provide financial literacy, Home maintenance, and employment training for tenants during the 15-year rental period, and will also oversee all aspects of the Home sales to tenants. The Homes will be constructed in a manufacturing housing plant that recently opened in Milwaukee.

Governor Doyle also announced WHEDA's new Partnership Neighborhood Initiative--a program for select neighborhoods aimed at increasing Homeownership among African Americans. As part of the initiative, Governor Doyle also announced that the state will provide a $200,000 line of credit to the Bishop's Creek Initiative in Milwaukee to purchase and make improvements to Homes and then resell them.

Partnership Neighborhood loans have very unique features and benefits, including:

A Home loan that is 1/4 point below WHEDA's already below-market Home Loan interest rate; this equates millions of dollars in lending to qualified families in neighborhoods like Bishop's Creek.
Only $500 cash needed at closing time.
No minimum credit score.
Immediate access to a $5,000 loan for down payment help.
Help in covering a house payment for up to six months if a Homeowner loses his or her job.

The Partnership Neighborhood loans will be offered in Beloit, Madison, Milwaukee, and Racine to increase Home ownership in specific neighborhoods with a high demand for affordable mortgages.

Governor Doyle was joined at the events by Bishop Sedgwick Daniels, Ralph Holman of the Milwaukee Urban League and Antonio Riley, WHEDA Executive Director.

WHEDA is Wisconsin's state housing authority. WHEDA serves Wisconsin residents and communities by working with other organizations to provide creative financing resources and information. Its goal is to stimulate and preserve affordable housing, small business, and agribusiness. Governor Doyle has directed WHEDA to increase lending to minorities by 20% in 2007.