OWNS: Ownership, Wealth, Neighborhood Stabilization
What is OWNS? The OWNS program (Owns, Wealth, Neighborhood Stabilization) is an initiative meant to boost local ownership of rental properties and to build generational wealth in Milwaukee communities. It looks to incentivize existing homeowners to buy City of Milwaukee owned properties, for rental purposes, in their neighborhood with the belief that local owner investors will be more accountable and attentive to an investment property near their owner-occupied residence.
OWNS Sales Terms
- After first 30 days bid period (owner-occupant only), OWNS investor-buyer is given the right, during non-bid owner-occupant only period (day 31-60) to buy (currently day 31).
- 5 year holding period (ownership) for OWNS buyer, with or without financing, is required for rental (City-owned) property purchased, and a $5K liquidated damage provision for breach of holding period. If buyer does not accept financing options, the property can be sold to an owner occupant to avoid breach of holding period.
- OWNS investor-buyer pays standard investor $2K performance deposit for timely completing Essential Repairs.
- Required Landlord Training certificate to be obtained prior to closing.
- Limited to 1 to 4 unit residential property (Neighborhood Property under MCO 304-49).
- OWNS buyer must satisfy General Buyer Policies and establish Proof of Funds to buy and to complete Essential Repairs.
- All things being equal: owner-occupant buyers have preference over OWNS buyers.
OWNS allows local investor buyers to purchase City properties during the extended owner occupancy period after the Bid Opening. This means OWNS buyers are eligible to buy on days 31-60.
Local investor buyers must live and own their residence within 500' of the property.
Details are available on the OWNS Notice and OWNS Addendum.
OWNS Notice Special Conditions Addendum
OWNS Financing Option (NIDC – Rental Rehab Loan)
Rental Rehab is a 5-year forgivable loan program that requires 50 % matching funds.
- Increase standard NIDC forgivable loan amount from standard $14,999 max/unit to $20,000 max/unit for OWNS buyer.
- Allow funds that OWNS buyer uses to buy the City-owned property (purchase price) to count as matching funds (up to 50%) for NIDC loan award purposes.
- Remove tenant income maximums for OWNS buyer purchases.
- Retain/impose NIDC’s rent limits for 5 year OWNS buyer holding period.
- Rent limits are (subject to adjustment):
- $797 for a 2-bedroom apartment
- $1,036 for a 3-bedroom apartment
- $1,145 for a 4-bedroom apartment