A plan to convert two large Milwaukee apartment communities to affordable rents has been rejected by the Common Council – with members citing a lack of information and a desire to maintain the apartments at their current market rate rents.
The $86.5 million proposal targets the 236-unit St. James Place, built in 1989 at 10300 W. Fountain Ave., and the 138-unit Arbor Ridge Apartments, built in 1999 at 7960-7972 N. 107th St.
A group led by Calabasas, California-based Post Real Estate Group LLC would buy the far northwest side communities and spend $2.25 million on upgrades.
Post Real Estate Group, an asset manager, and prospective owner Bedford Affordable Housing Foundation would finance the purchase and improvements with tax-exempt bonds. Those carry a lower interest rate on that bond debt – allowing reduced rents.
Those bonds would be sold to investors through the state-created Public Finance Authority, and wouldn’t involve city or state funds. But the bond sale needs city approval.
The council voted 14-1 on May 12 to deny that approval.
Alderwoman Larresa Taylor, whose district includes St. James Place and Arbor Ridge, said it wasn’t necessary to change the apartment communities to affordable housing.
Taylor told the council’s Zoning, Neighborhoods and Development Committee on May 5 she wants to attract “luxury apartments” to her district.
Alderman Robert Bauman told council members Post Real Estate Group didn’t meet with Taylor, appeared virtually before the committee, and didn’t seek community input.
“We have no idea what their track record has been,” said Bauman, committee chair.
Alderman Alex Brower, who supports the bond issue, called it an opportunity to create additional affordable housing at no cost to the city.
“The housing crisis right now is spiraling out of control,” he said.
Bauman suggested he might be open to supporting the bond issue if Post Real Estate representatives visit Milwaukee and provide more information about their plans and the company’s background.
The company didn’t immediately respond to the Milwaukee Journal Sentinel’s request for comment. Also not responding were representatives of Mayor Cavalier Johnson and Development Commissioner Lafayette Crump.
Post Real Estate would target people earning up to 80% and 60% of the Milwaukee area’s median income. The latter is around $66,400 for a four-person household, according to the U.S. Department of Housing and Urban Development.
Residents earning up to that 60% level would see monthly rents for the one- and two-bedroom apartments reduced by up to $490 at St. James Place and up to $343 at Arbor Ridge, according to the company. Minimal rent reductions would be $20 and $112, respectively.
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Bluesky, X and Facebook.
This article originally appeared on Milwaukee Journal Sentinel: Council rejects plan to convert apartments from market rate to affordable rents
Reporting by Tom Daykin, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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