Acts Housing hits $26.4 million goal to boost Milwaukee homeownership
Acts Housing reached a milestone this month.
The nonprofit set out on an ambitious goal in 2022. It wanted to reshape the local housing landscape and expand homeownership opportunities for low- to moderate-income families. To achieve that, it launched the Opening Doors Campaign, a $26.4 million fundraising effort that year.
On March 11, the 32-year-old organization announced it reached its fundraising goal.
"This was Acts Housing's first large fundraising campaign, and its success will open the doors to homeownership for hundreds of additional families every single year," said Acts Housing President and CEO Michael Gosman.
"Homeownership not only creates a foundation for a family, but at this scale will strengthen entire neighborhoods," he added.
A $1.25 million contribution from the city helped the campaign reach its goal. Mayor Cavalier Johnson declared 2026 the Year of Housing.
"All across city hall we're making housing a priority, and community partners like Acts Housing are essential to making homeownership possible," Johnson said.
Other funders included $2.75 million from the Zilber Family Foundation, $2.5 million from Milwaukee County, and a $2 million donation from Christine Symchych and James P. McNulty. The campaign concluded in December with a $500,000 Match Challenge from the National Exchange Bank Foundation.
Agency plans to buy and rehab additional homes
The funding will buttress two of the nonprofit's homeownership initiatives — the Acts Homes acquisition fund and Acts Lending loan fund.
The Acts Homes acquisition fund allows the nonprofit to buy and rehab homes in partnership with local contractors. The homes are then sold as affordable to owner-occupants who've completed the nonprofit's homebuyer education classes or other HUD-certified programs.
To date, Acts Homes has purchased and rehabbed approximately 100 homes in Milwaukee.
The program was created in 2023 in response to a glut of out of state private investors gobbling up Milwaukee homes – often in bulk – robbing residents of the chance to become homeowners.
Last year, 430 families graduated from its homebuyer's education program and were pre-approved for a loan. But securing a house proved difficult as private investors snatched up properties with all-cash offers or quick sales, Gosman noted.
"Our families just couldn't compete with that. Even if our families were willing to offer as much or more for the homes," Gosman said. "We want to make sure that those families have a really good shot in the market to get a home that meet their needs and is a good, fair deal."
Institutional private equity money should not be the only ones getting deals on home, he added. Otherwise, these homes would sit in investors' portfolios and become high-priced, low-quality rentals. Gosman said.
In its first year Acts Homes sold nine homes it purchased and rehabbed. This year it projects to rehab and sell 90 homes.
Agency provides mortgage loans to families with challenging credit history
The campaign also added $14 million to the nonprofit's Acts Lending fund. Established in 2013, the fund provides mortgage loans to families with credit challenges or unable to qualify for traditional financing.
These families, Gosman noted are still doing the right things – paying their rent on time. But because their credit score isn't high enough or debt to income ratio is too high, they don't meet the qualification for traditional lending institutions, he said.
"Most institutions are only originating loans that fit into a certain box because they want to be able to sell those loans to Fannie or Freddie," he said. "We believe in them, and we have successfully lent to families who are sort of outside the bank and credit union underwriting box for the last 13 years."
The funding will allow the nonprofit to do 30% more loans than it did last year. And it ensures the program's long-term success. When loans are made, families repay their mortgages with interest. That allows Acts Housing to reinvest those dollars in the next family without needing additional community philanthropy, Gosman said.
"We believe we can originate upwards of 200 mortgage loans a year to families who are dreaming of homeownership and are right now on the sidelines and locked out."
Homeownership dream arrives for two residents
The dream of homeownership came true for Xavier Shands. He bought the same house he has rented for years in the Metcalfe Park neighborhood.
"Homeownership means you've accomplished owning a piece of America," Shands said.
Berdina Howard bought her Roosevelt Grove home after going through Acts Housing Powerpack coaching program. At times, Howard said she doubted she would get through the program.
"My coach helped me. I gave up at first, matter of fact, a few times," Howard said, adding that her housing coach wouldn't let her quit.
"I didn't think I was going to be able to afford getting into a house, but through Acts Housing, they helped me a lot," she said.
This article originally appeared on Milwaukee Journal Sentinel: Acts Housing raises millions to boost Milwaukee homeownership
