Could County Create Affordable Housing Loan Fund?

Milwaukee County may explore creating a revolving loan fund for affordable housing developments.

A revolving loan fund is a pool of capital, typically managed by a governmental entity or a non-profit, providing short-term loans to projects and then using the interest on repayments to fund more loans. They can provide gap financing for projects that are difficult to finance through private lenders, like affordable housing.

State and local governments around the country have started using revolving loan funds to finance affordable housing projects, to speed up development and eliminate the uncertainty of the federal funding process. The funds have proven a new way for the governments to develop public housing...

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Leo’a notes: Milwaukee County’s exploration of a revolving loan fund marks a promising shift toward long-term, self-sustaining housing finance. Unlike one-time grants, these funds recycle repayments into new projects—helping local governments close financing gaps and move faster than federal programs allow. With models like Montgomery County, Maryland’s $100 million fund already proving that public capital can build mixed-income housing and retain local control, Milwaukee’s interest signals an important evolution in how the region could approach affordability, equity, and ownership. The challenge now is identifying seed funding—but the payoff could be a durable tool that multiplies public investment for decades to come.