Habitat for Humanity preps for another phase of Harambee project

Nonprofit wrapping up construction on last of 40 homes it began building in 2021

Brian Sonderman, executive director of Milwaukee Habitat for Humanity speaks during an event in Harambee in May 2022. (Photo: Milwaukee Habitat)

Milwaukee Habitat for Humanity is gearing up for yet another phase of its effort to build 80 new homes in the city’s Harambee neighborhood.

Habitat kicked off the multi-year endeavor – a roughly $12 million investment – in early 2021. Bader Philanthropies, which has its headquarters on King Drive in Harambee, provided $1 million to help fund the project.

With the nonprofit now finishing up construction on the last of the first 40 homes it has built as part of the effort, it is beginning the process of purchasing another 43 city-owned lots in the neighborhood that it plans to use to construct about another 40 homes. The city’s Zoning, Neighborhoods & Development Committee is slated to consider the sale of the lots to Habitat next week for $1 each.

The lots are located in an area bordered by West North Avenue to the south, North Holton Street to the east, West Capitol Drive to the north, and North Eight Street to the west. The Harambee neighborhood is located to the west of the city’s Riverwest neighborhood.

Construction of the homes is slated to begin in late summer 2024. Each home will be approximately 1,100-1,400 square feet and will have 3-4 bedrooms and 2 baths. Once completed, the homes will be sold to owner-occupants. Each owner is required to contribute to the construction of the home through their own “sweat equity” as part of the Habitat development model. Mortgages for the homes would be about $950 for first-time homebuyers, which is far lower than average monthly rental payments in the city.

Milwaukee Habitat works with families whose incomes fall between 30% and 80% of the county’s median income. Little to no down payment is required on Habitat homes, closing costs are low, and home loans do not exceed 30% of a family’s income.

The nonprofit plans to construct at least nine homes as part of the project in 2024, with plans to wrap up the Harambee neighborhood effort sometime in 2026. The work comes in addition to other building projects it has ongoing in the city’s King Park and Midtown neighborhoods, and as it ramps up annual building in an effort to double the number of homes it builds in Milwaukee each year by 2028.

Historically the nonprofit has built 20 homes per year in Milwaukee, but this year it is on pace to complete about 30.

“Together, and only together, can we level the playing field for those that have been priced out of the housing market. I say together, because, let’s face it, we have a massive housing crisis in our community,” said Brian Sonderman, executive director of Milwaukee Habitat for Humanity this June. “It exists in Milwaukee. It exists throughout our state, and it exists throughout our country, but particularly in Milwaukee we have an unconscionable racial disparity gap when it comes to home ownership.”

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Cara Spoto
Cara Spoto, former BizTimes Milwaukee reporter.

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