Milwaukee loses demolition money from state (UPDATE)

By Molly Willms

A vetoed provision in the state budget would have allowed for the demolition of as many as 290 blighted Milwaukee homes.

Without the money, Milwaukee Mayor Tom Barrett said, the city “honestly cannot meet the demand” of homes in need of demolition. Barrett called Gov. Scott Walker’s veto “a gratuitous slap in the face to the city of Milwaukee.”

The Blight Elimination Program, administered by the Wisconsin Housing and Economic Development Authority, was set to receive $3.5 million dollars in grants from the state Department of Justice and Department of Financial Institutions. If granted, the money would have gone to cities and towns across the state to demolish foreclosed and abandoned properties.

Walker vetoed the provision Sunday. In his veto message, he said he did so because he objected to the Legislature directing DOJ and DFI spending decisions.

George Althoff, the DFI’s communication’s director, said they are considering offering the grants again, but it’s too soon to say for sure.

Barrett said this is part of Walker’s agenda to ignore the foreclosure crisis in the state.

“To ignore the problem,” Barrett said, “does not mean the problem no longer exists.”

Kevin Fischer, WHEDA spokesman, who has administered this money in the past, said Sunday’s veto is “not the end of the world,” however.

The BEP began with a million-dollar grant in 2012, paid for by the National Mortgage Settlement through DOJ and DFI. Half of the grant went to Milwaukee homes and half went to 15 other Wisconsin cities. Fischer said that money paid for the eventual demolition of 39 homes in Milwaukee.

Jennifer Gonda, the director of Intergovernmental Relations for the city of Milwaukee, said in an earlier interview that the city had worked hard to get the $3.5 million allocation into the budget. If Milwaukee had gotten the money requested, the city could have demolished 290 homes at $12,000 each, Gonda said.

She could not immediately be reached for comment after the veto.

Fischer said the BEP has the support of the governor. In his veto message, the governor said both DOJ and DFI have discussed continuing the program through July 2013, and he encouraged both departments to participate as much as possible.

“His message to everyone involved is clear: continue talking about how we can expand this program in the future,” Fischer said. “He just has objections to how the legislature directed how those funds were used.”

Barrett said the city doesn’t anticipate an override of the governor’s veto. He said the city will continue to put together demolition money from as many sources as it can.

Representatives for Walker did not immediately respond to requests for comment.

As of now, the DOJ is not planning to give more money to WHEDA for demolishing blighted homes, said Steve Means, executive assistant to the Attorney General.