Affordable Housing Finance

Wisconsin-based Developer Gorman & Company Recognized as one of the Top Ten Affordable Housing Developers in the Nation

Published on Urban Milwaukee on April 26, 2017

Madison, WI—April 25, 2017— Affordable Housing Finance (AHF) has named Wisconsin –based Gorman & Company (Gorman) as one of the top ten affordable housing developers in the nation in the only listing of its kind, AHF 50. AHF surveyed over 110 companies regionally and nationally to produce the annual report on the nation’s top 50 developers which publishes the number of affordable housing construction starts and completions by developers included on the AHF list and provides a picture of emerging industry trends. Gorman rose to number 10 on the AHF 50 listing from number 16 in 2015, breaking ground on nine innovative developments throughout the country that are comprised of 776 affordable apartment homes.

Gorman CEO and founder, Gary Gorman, who has stewarded his company’s growth –from its launch with a modest 24-unit project in small-town Wisconsin to successfully completing over 5000 affordable apartment homes nationwide and elevated the face of public housing by partnering with communities and the public sector remarked:

“We have been developing affordable housing for over thirty years. It is very gratifying to receive this recognition.”

Gorman is also featured as the cover story in AHF’s April/May edition. Here is the link.

In the profile of Gorman by Donna Kimura, deputy editor of AHF, Jack Manning, president and CEO of Boston Capitol, a long-term financing partner on 14 of Gorman’s leading edge projects, appraised Gorman with a snapshot observation of its creative and collaborative development approach:

“…Gorman is the type of company that loves innovation.”

Gorman is planning to break ground on 12 new projects around the country this year and projects completion of over 1000 additional affordable housing units. The company is also looking to parlay its strong foundation of partnerships with public housing authorities and to expand its portfolio of Rental Assistance Demonstration (RAD) projects.

Recently, Gorman completed Madison Heights (the first RAD project ever completed in Arizona) in partnership with Housing Authority of Maricopa County, (HAMC), transforming a severely dilapidated post-World War II-era public housing project in Avondale, AZ into a pioneering and sustainable 143-unit community that also set aside 30 apartments to provide permanent homes and a social incubator for “chronically homeless” residents.

In Rockford, IL Gorman is partnering with the Rockford Housing Authority (RHA) on a RAD initiative to replace and revision 1100 existing units of public housing at scattered sites, incorporating fresh architectural solutions, social and educational support and a strong homeowner component to create a new blueprint for affordable housing. Replacement units are owned in partnership between Gorman and Bridge Rockford Alliance, Inc., a wholly owned subsidiary of the RHA. The Grove at Keith Creek, a 49 –unit multi-family residential community (with 22 units targeted for home ownership) is slated for completion this summer and is the second phase of that initiative.

To advance the company’s goals for the future and to usher in the next phase of growth, Gorman has also announced a succession plan effective January 1,2018. Under the new leadership structure, Gorman founder and CEO, Gary Gorman will become chairman of the Gorman’s Board of Directors and continue active involvement in all significant decisions for the firm. Brian Swanton, currently Gorman’s Arizona & Southwestern States Market President will take the reigns as CEO. Current COO, Tom Capp, was joins Gorman’s Board of Directors as vice-chairman. Mr. Capp will also serve as lead advisor on strategic planning and growth for the firm identifying new market opportunities that fit the critical needs of communities.

About Gorman & Company, Inc.

Gorman & Company is nationally recognized for revitalizing communities and urban urban neighborhoods through innovative public-private partnerships. As a trusted partner and respected industry leader since 1984, Gorman specializes in downtown renewal, the preservation of affordable housing, workforce housing and the adaptive reuse of significant historic landmarks with offices in Milwaukee, Chicago, IL; Denver, CO; Miami,FL and Phoenix, AZ.The company maintains in-house design, construction, and development divisions that have successfully completed over $900 million new construction and major renovations since its founding 33 years ago. Its affiliated property management firm manages over 5,000 units around the country.

Gorman & Company Begins 7th Phase of Milwaukee Northside Housing Initiative

Tax Credit Advisor, January 2015

In early October Gorman & Company broke ground in Milwaukee on the 7th phase of its nationally-acclaimed scattered site, single family home redevelopment.

Gorman & Company’s Northside Housing Initiative is a partnership with the City of Milwaukee and the Wisconsin Housing and Economic Development Authority (WHEDA). Its goal is to resuscitate challenged neighborhoods that have been devastated by the foreclosure crisis. Foreclosed, boarded-up properties are rehabbed into high-quality rental housing. In addition, newly constructed homes are built on vacant lots that residents consider the “broken teeth” of their neighborhood.

This innovated housing initiative also focuses on training  chronically unemployed people from the affected zip codes. The City of Milwaukee offers critical support for the project by assembling the individual properties and contributing them to the initiative.

From Foreclosures, Affordable Housing

Affordable Housing Finance, 2014 LIHTC Yearbook

A Wisconsin developer’s large-scale initiative in neighborhoods on Milwaukee’s North Side is helping reverse the damage of the Great Recession and foreclosure crisis.  By purchasing vacant lots and foreclosed homes from the city, Gorman & Co. has aided in neighborhood revitalization, homeownership opportunities, and job creation.

Over the course of seven phases, the developer built or rehabbed 282 single-family homes or duplexes affordable to residents earning between 30 percent and 60 percent of the area median income.

“All of those homes that we redeveloped within the neighborhoods are in a high demand because people in this day and age really find it hard to own a home but want the space of a home to raise a family,” says Ted Matkom, Wisconsin market president for Gorman & Co.

Gorman refurbished the homes, many of which date back to the early 1900s, with modern amenities, appliances and security systems.  “You literally get a new home, in a sense, when you move in,” Matkom says.

After the 15-year compliance period, residents living within the single-family homes will have the opportunity to purchase them for the remaining debt, which is projected to be approximately $35,000.

The acquisition and rehabilitation work also has provided a needed jobs boost in the city.  Gorman partnered with nonprofit Northcott Neighborhood House to create a training program for chronically unemployed local residents with challenged backgrounds.  Through the program, men and women were trained to do construction trade work and demolition work.

Low-income housing tax credits (LIHTCs) were vital to the developer’s work.  The $56.6 million initiative was financed with $44.1 million in LIHTC equity.  Additional financing included Neighborhood Stabilization Program funds from the city of Milwaukee.

“The LIHTC program really makes the housing sustainable for years to come,” says Matkom.  “And it really revitalizes the housing stock with minimal subsidy.”

Developer Helps to Transform Milwaukee Neighborhoods

By Christine Serlin, Affordable Housing Finance

A Wisconsin developer’s large-scale initiative in neighborhoods on Milwaukee’s North Side is helping to reverse the damage of the Great Recession and foreclosure crisis.

By purchasing vacant lots and foreclosed homes from the city, Gorman & Co.’s work is resulting in neighborhood revitalization, homeownership opportunities, and job creation.

Over the course of seven phases, the developer built or rehabbed 282 single-family homes or duplexes affordable to residents earning between 30 percent and 60 percent of the area median income.

“All of those homes that we redeveloped within the neighborhoods are in high demand because people in this day and age really find it hard to own a home but want the space of a home to raise a family,” says Ted Matkom, Wisconsin market president for Gorman & Co.

Gorman refurbished the homes, many of which date back to the early 1900s, with modern amenities, appliances, and security systems. “You literally get a new home in a sense when you move in,” Matkom says.

After the 15-year compliance period, residents living within the single-family homes will have the opportunity to purchase those homes for the remaining debt, which is projected to be approximately $35,000.

Residents must sign a contract of care, which promises that they will maintain the home with ordinary upkeep, such as mowing the grass, shoveling snow from the walkways, and doing minor repairs. This helps to instill homeownership responsibilities in the residents and helps to reduce Gorman’s operating costs since it’s a scattered-site project over a three-mile diameter, says Matkom.

The acquisition and rehabilitation work also has provided a needed jobs boost in the city. Gorman partnered with nonprofit Northcott Neighborhood House to create a training program for chronically unemployed local residents with challenged backgrounds. Men and women were trained to do construction trade work and demolition work.

Low-income housing tax credits (LIHTCs) were vital to the developer’s work. The $56.6 million seven-phase initiative was financed with $44.1 million in LIHTC equity provided by Alliant Capital, Boston Capital, and National Equity Fund. Additional financing included Neighborhood Stabilization Program funds from the city of Milwaukee.

“The LIHTC program really makes the housing sustainable for years to come,” says Matkom. “And it really revitalizes the housing stock with minimal subsidy.”

The AHF 50: Top 50 Affordable Housing Developers, #29 Gorman & Company, Inc.

By Christine Serlin, Affordable Housing Finance, April/May 2014

#29, Gorman & Company, Inc.

Gorman and Co., based in Oregon, Wis., isn’t just a housing developer.  The company considers itself a community developer, too, building in revitalizing areas in Arizona, Florida, Illinois, and its home state.  One of Gorman’s major accomplishments for 2013 was finding new sources of financing for that work.

“We have to be prepared if there are real jolts to traditional funding, like low-income housing tax credits (LIHTCs) or historic tax credits,” says COO Tom Capp.  “That’s a bit of the motivation why we’re looking at new sources.”

The firm has had recent success with the government’s EB-5 program, which offers foreign citizens a Green Card if they’ll invest $1 million in an American project that creates or preserves jobs primarily in community development areas.

Gorman is redeveloping the Pabst Brewery site in Milwaukee with three projects.  The first was Blue Ribbon Lofts, 100 affordable units financed with LIHTCs and historic tax credits.  The second was a historic hotel and restaurant, where the company utilized the EB-5 investments.  The third will be market-rate workforce housing with equity from a Chinese developer.

“These financial sources are fueling projects like workforce housing and elements communities want to see us executing in the revitalizing areas,” says Capp.  “These sources are touching housing, but not intermingling with the LIHTC.”

The firm has also received approval from HUD’s Rental Assistance Demonstration program for a 300-unit public housing development in Phoenix.

Gorman & Company, Inc. Named in the Top 50 Affordable Housing Developers of 2013

April 10, 2014

Affordable Housing Finance named Gorman & Company, Inc. in the top 50 affordable housing developers for 2013.