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Cornerstone Apartments
Waukesha, Wisconsin

In the early 1990s, Waukesha, Wisconsin, a city of 61,000 located in a growth corridor between Milwaukee and Madison, was facing a shortage of affordable rental housing and a growing homeless population. The latter was most visible in the central business district, resulting in conflict between the business community and homeless advocates. Nearby, in a neighborhood of single-family homes and market-rate apartments, a deteriorated motel was increasingly the site of illegal activity and police interventions. The acquisition and renovation of the motel into the Cornerstone Apartments and Hearthstone Cafe promised to relieve both problems simultaneously.

The three-story motel was converted into 38 efficiency units and a full-service restaurant through the work of a partnership among Community Housing Initiative, Inc. (CHI), a local nonprofit, and three private investors. Hebron House of Hospitality, another local nonprofit, manages the facility and provides case management services to residents.

The ground floor of the 16,000-square-foot building houses the Hearthstone Cafe (a 75-seat restaurant), administrative offices for Hebron House, common areas for residents, and a secured entrance to the residential units on the two floors above. Renovations included improvements to the existing restaurant facility, former motel rooms, and bathrooms; installation of a compact kitchen in each unit; replacement of heating and air-conditioning systems, windows, and carpeting; and exterior improvements. The total project cost was just over $1.1 million.

The cost of acquisition and renovation was covered by a $200,000 deferred payment loan provided with state HOME funds, a $606,000 low-interest loan from the Wisconsin Housing and Economic Development Authority, and $160,000 in cash equity from the private investors. The commitment of HOME funds was key to securing other funding and services. A variety of funding sources supported the renovation of the commercial space, including the restaurant. These included both the city and county Community Development Block Grant (CDBG) programs, the Milwaukee Foundation, and the Wisconsin Electric Power Company.

Cornerstone Apartments was designed to serve low-income persons who also need support services to achieve long-term stability. Potential tenants are referred to Cornerstone by mental health or substance abuse service providers, the county shelter system, or the human services department. They must apply to Hebron House for admission and must establish a plan for reaching personal goals as a condition of occupancy. Hebron House helps residents access services such as job training and placement; drug and alcohol counseling; education; and classes in budgeting, parenting, and daily living skills. Rental assistance is available to tenants who are income eligible and who meet a long-term case management commitment jointly determined by Hebron House and the Waukesha Housing Authority.

The Hearthstone Cafe is leased and run by the Waukesha Training Center, a local nonprofit employment and training organization. The restaurant provides training and employment opportunities for residents of the apartments and other clients of the Waukesha Training Center, and was designed to accommodate and facilitate training activities.