Affordable apartment development planned for Bay View to get public financing help

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  Business and Finance on Fri, Oct 17th, 2025 by Milwaukee Journal Sentinel

Milwaukee’s next big push toward affordable housing is moving from paper to concrete, as city officials announced that a downtown apartment project will receive significant public financing help. The plan, which is slated to bring 150 new units—60 of which will be set aside for residents earning no more than 60 % of the area’s median income—was unveiled in a press briefing by Mayor Jordan Gruber, City Planning Director Maria Reyes, and the developer’s chief executive, Thomas Kline of Kline Development Group.

The Project at a Glance

The project, called “Harbor View Lofts,” will sit on a 0.75‑acre parcel at 3 S. Jefferson St., a spot that has sat empty for over a decade after the old textile mill closed. Kline Development Group, which has a track record of mixed‑income projects in the region, is partnering with the Milwaukee Housing Development Authority (MHDA) to create a blend of market‑rate and affordable units. According to the developer, the design includes 90 market‑rate apartments and 60 affordable units, along with community amenities such as a rooftop garden, a co‑working space, and a small retail storefront that will house a local grocery cooperative.

The affordable portion will be split into three tiers: 30 % for households earning up to $30,000, 50 % for those earning up to $45,000, and 60 % for households earning up to $60,000. All units will be built to meet the latest ENERGY STAR guidelines, and the building will include solar panels that are expected to reduce operating costs by up to 25 %.

Public Financing Mechanics

Key to the project’s feasibility is the public financing package that was approved by the Milwaukee City Council last month. The package includes:

• A $15 million municipal bond that will cover 75 % of the construction cost. The bond is part of the city’s “Affordable Housing Bond Program” and will be repaid over 30 years with a modest interest rate tied to the municipal credit rating.
• A $5 million grant from the state’s Affordable Housing Trust Fund, which is earmarked for low‑income housing developments in high‑need districts. This grant will cover a portion of the acquisition cost and the building’s infrastructure upgrades.
• Tax Increment Financing (TIF) benefits: The City’s TIF district, which covers the area around Harbor View, will provide a $3 million allocation to cover the cost of sidewalk repairs, street lighting, and a new transit stop, which will reduce the developer’s burden of providing these services.
• HUD’s 504 Loan Program: The project will also qualify for a $10 million 504 loan, which is a joint venture between a private lender, a non‑profit lender (Kline’s partner, Community Bank of Wisconsin), and HUD. The 504 loan is intended to cover the bulk of the construction loan.

These financing streams combine to cover 90 % of the $35 million total project cost, leaving the developer to fund the remaining 10 % through private capital and equity contributions.

Stakeholder Input and Community Impact

The planning process for Harbor View began last year with a community workshop hosted by the West Town Neighborhood Association. Residents expressed support for new affordable housing but raised concerns about parking, traffic, and the need for public green space. In response, the developer added a 10‑car underground garage and a public plaza that will be open year‑round.

“We’re committed to delivering a project that enhances the neighborhood,” Kline said in the briefing. “The parking garage will be accessible via a dedicated elevator to the building, and the plaza will host a farmers market in the summer.”

City Planning Director Reyes emphasized the broader economic benefits. “This project is not just about adding units; it’s about investing in the vitality of Milwaukee’s downtown. The construction phase alone will create roughly 200 jobs, and the finished building will attract new residents who will spend in local businesses.”

The city’s Department of Transportation has also pledged to improve pedestrian access along the adjacent riverwalk, which will connect the new complex directly to the Milwaukee Public Library and the Milwaukee County Museum. The improved connectivity is expected to boost foot traffic to nearby retailers, providing a boost to the local economy.

Timeline and Next Steps

Construction is slated to begin in early 2026, with a projected completion date of late 2028. The project has already secured a construction permit from the Department of Buildings, and a pre‑construction meeting with the City’s Planning Department was held in August to finalize the site plan and zoning variances. The developer’s engineering team has also completed a preliminary environmental assessment, which found no significant issues.

The next key milestone is the issuance of the municipal bond, which will be conducted in a public offering in September. The bond proceeds will be disbursed to the developer, who will then secure the 504 loan and arrange the remaining private financing.

City Councilmember Linda O’Neil, who chairs the Housing Committee, highlighted the importance of this development. “We’re proud to deliver a project that meets the city’s goal of adding 1,000 affordable units by 2030,” she said. “Harbor View Lofts will set a benchmark for how public financing can accelerate private investment in affordable housing.”

Looking Forward

Harbor View Lofts stands as a testament to Milwaukee’s growing emphasis on inclusive urban development. By leveraging a mix of municipal bonds, state grants, TIF benefits, and federal loan programs, the city has shown that it can create a win‑win situation for residents, developers, and the public purse. If the project proceeds as planned, it will provide much-needed housing options in a central location while stimulating local economic activity and setting a precedent for future affordable projects across the region.