ACTS Housing

Jobs are scarce in Milwaukee and home foreclosures are plentiful. This is not a new reality for Milwaukee’s inner city. To reduce the number of vacant foreclosed properties and to create jobs, ACTS donated its equity to start a small self-help rehab loan program in the year 2000.

As a result of this last recession, there are even more foreclosed properties available to our families. At the same time, banks are reducing their rehabilitation loan programs. Consequently, the demand for our loan product is increasing and the principal in our loan fund is being depleted.

This loan program typically provides new homeowners with a $3,000 loan at 0% interest rate with a 5 year monthly payment of $50. This loan is used to purchase materials used by the owner to repair the foreclosed property so that the family can occupy it. It is the key ingredient that allows a family to turn a vacant foreclosed property into a pride-filled home.

Because the owner supplies the labor, these loans create equity and a low monthly housing payment. The ownership of one’s home maintains family stability and the sweat-equity work instills a can-do attitude. ACTS helps to create environments in which kids develop long lasting neighborhood friendships and enjoy the benefits of not having to repeatedly change schools because of changes in housing. We witness the parents using their hard-earned home equity to send their kids to college and who survive during high unemployment because of their low housing costs.

In addition, since the owner uses contractors to assist them in their sweat-equity rehab efforts, they tend to hire small mom-and-pop businesses that work in the neighborhood and that have a difficult time competing for large rehabilitation jobs.