Mayor, MSHDA, Announces $38 Million in LIHTC Funding to Create 183 New Highly Affordable Housing Units for Detroit Residents
- All affordable units are below 60% of the region’s median income, with more than half falling between 30% and 60%.
- The conversion of the former St. Matthew’s School project marks the first time the city has offered a new housing assistance program to create even more affordable accessibility for Detroit residents.
- Projects located in Old Redford, Midtown, Woodbridge and MorningSide neighborhoods.
DETROIT – Mayor Mike Duggan was joined today by Council Member Latisha Johnson and officials from the Michigan State Housing Development Authority (MSHDA) to celebrate 183 units of new, highly affordable housing for Detroit residents that will be built through $38 million in Low Income Housing Tax Credits (LIHTC). Detroit has received the most LIHTC awards of any city in Michigan.
The projects represent a total investment of $60.9 million in four neighborhoods across the city and will provide high-quality affordable housing for low-income Detroit residents and those most at risk of homelessness, as well as 20 apartments in market price.
The 183 affordable units will have rents considered affordable for households earning no more than 60% of the area’s median income (AMI). This means that a single person must earn less than $37,620 or a family of two must earn no more than $42,960 per year to qualify. The rent for these units will be around $940 per month for a one-bedroom apartment and $1,074 for a two-bedroom apartment. However, more than half of the 183 units will be reserved for residents earning 30-50% of the AMI, with rents as low as $470 per month for one bedroom. Most will not pay more than 30% of their income, regardless of their income level.
“I want to thank MSHDA and Governor Whitmer for their continued commitment to creating more affordable housing in Detroit neighborhoods,” Mayor Duggan said. “As our city returns, the most important thing we can do is make sure the Detroiters who stayed can still afford to live in the neighborhood of their choice, and today’s announcement gives a a big boost to this commitment.”
The announcement was made at historic St. Matthew’s School in the MorningSide community, one of four LIHTC winners this year. Following a $17.4 million conversion by the Catholic Charities of Southeast Michigan, the vacant school will become St. Matthew’s Residences, which house 46 affordable housing units. The project has received $9.8 million in LIHTC funding from MSHDA, along with 25 MSHDA project-based vouchers for permanent supportive housing, ensuring that these residents will pay no more than 30% of their income for rent and utilities.
The project also represents the first time the City of Detroit’s Housing and Revitalization Department has offered a Housing Assistance Reserve, ensuring that residents of designated units will pay no more than 30% of their income. The City has also invested $3 million in federal HOME funds in the project.
“This new tool is the latest way the Duggan administration is working to improve affordability for residents,” said Kelly Vickers, head of development and investments for HRD. “We hope this project is the first in many to receive these grants as we work to improve access to quality affordable housing in Detroit.”
With the allocation of Section 8 vouchers and city housing subsidies, half of St. Matthew’s residents will pay no more than 30% of their income. The rest of the units will serve residents earning 60% or less of the AMI.
“Today is a big day in District 4 as we announce not only affordable housing, but also a home for those who need it most, and new life for a landmark building. MorningSide for nearly 100 years,” said Councilman Latisha Johnson, who represents District 4. “I commend the development team and the city for making this project as affordable as possible for as many people as possible. possible.
The project team is led by Catholic Charities of Southeast Michigan (CCSEM), a nonprofit organization that helps more than 20,000 people of diverse faiths and cultures in Southeast Michigan. On-site health care will be provided to residents and the community through a partnership with Ascension Michigan. The primary on-site service agency will be Southwest Counseling Solutions, which has extensive experience serving permanent supportive housing residents and is a community mental health provider.
Cinnaire Solutions, a non-profit housing development organization with significant LIHTC experience, is a co-developer. Ethos Development Partners is the development consultant and has extensive experience not only in affordable housing, but also in converting former Catholic schools into housing, such as the former Transfiguration School which opened earlier this year in Campau/Banglatown. In addition to affordable housing and health services, the school gymnasium will be transformed into a community space.
“Catholic Charities of Southeast Michigan is committed to providing affordable housing with supportive services that ensure each person has what they need to thrive,” said Paul Propson, CEO of Catholic Charities of Southeast Michigan. “Adapting this school into affordable housing, on this beautiful and historic St. Matthew campus, allows us to be part of the vibrant communities of MorningSide, East English Village and Cornerstone. Partnering with Ascension to improve access to health and wellness in the neighborhood will also benefit residents of the campus and surrounding areas. The alignment of St. Matthew Parish, Ascension Health System and our housing partners in Cinnaire will strengthen this community and the people who call it home.
State support is essential
Governor Gretchen Whitmer’s announcement represents 529 affordable units statewide to help increase the number of affordable housing options statewide amid a housing shortage, which will help lower costs for the Michiganders. Investment from these projects is expected to add approximately $151 million to the state’s economy and create 1,000 jobs.
“We know that creating affordable housing benefits everyone in the state by driving local economic growth, but it also creates opportunities for Michigan residents to have equitable access to safe, quality, and affordable housing. affordable for their families, allowing for stable, secure living and upward mobility,” said Chad Benson, director of rental development for MSHDA.
Other projects are building from scratch
Detroit’s other three LIHTC winners are new construction projects that replace empty land, with 157 units — 137 of which are earmarked as affordable housing below 60% AMI.
“I have been an advocate for affordable housing since the beginning of my political career,” Council Chair Mary Sheffield said. “As a nation, we are currently facing the realities of a housing crisis and a growing problem of homelessness. Today’s announcement begins to bridge the gap between the repurposing of existing buildings and vacant land to enable quality affordable housing and provide space for displaced people.
Here’s a look at the three other LIHTC recipients from Detroit this year:
4401 Rosa Parks
This development at Rosa Parks Boulevard and Calumet will replace vacant land that was once part of the Wilbur Wright School campus. The project’s high affordability will help alleviate demand and high rents in the popular Woodbridge area. Construction is expected to start in the first quarter of next year and end in the third quarter of 2024.
Developer: Cinnaire Solutions Corp. and Woodbridge Neighborhood Development Corp.
LIHTC Prize Value: $8.9 million over 10 years
AMI Breakdown (60 units in total):
- 11 units @ 30% AMI
- 15 units @ 40% AMI
- 14 units @ 60% AMI
- 20 market rate units
Total development cost: $16.7 million Other funding: The developer plans to submit a request for municipal payment in lieu of taxes (PILOT).
Residence for the elderly Greystone
This new construction sits on a vacant site on Martin Luther King Jr. Boulevard, just west of Cass Avenue. The building will feature 49 one- and two-bedroom units spread over four floors. Located in the heart of Midtown, the Greystone will provide seniors with quick and easy access to public transportation like the QLINE as well as shopping destinations like Whole Foods. Construction is expected to begin in early 2023 and be completed by the end of the year.
Developer: Cass Corridor Neighborhood Development Corp.
Address: 440 Martin Luther King Jr Blvd.
LIHTC Prize Value: $8.26 million over 10 years
AMI Breakdown (49 units):
- 13 units at 30% AMI
- 3 units at 40% AMI
- 33 units at 60% AMI
Total development cost: $12.6 million
Other funding: $1,626,988 in City HOME funds and 4% payment in lieu of taxes (PILOT)
Orchard Village Apartments
CHN Housing Partners and Detroit Blight Busters are co-developing the 48 Orchard Village apartments at Orchard and Santa Clara streets in the heart of Old Redford and near Blight Busters’ many commercial corridor projects near Lahser and the Grand River. The two-bedroom apartments in Orchard Village will serve residents with incomes between 30% and 60% of the AMI. Construction is expected to begin in the spring of 2023 and be completed in 2024. CHN will manage the property once construction is complete.
“We are thrilled to bring this affordable housing development to the Old Redford neighborhood,” said Jason Headen, vice president of the Detroit market for CHN Housing Partners, and John George, founder and executive director of Detroit Blight Busters, in a joint statement. . “Orchard Village apartments will ensure that low-income Detroiters will be part of the next phase of growth in this neighborhood.”
Developer: CHN Housing Partners and Detroit Blight Busters
Address: 21525-21652 Orchard St.
LIHTC Prize Value: $10.8 million over 10 years
AMI Breakdown (48 units):
- 10 units at 30% AMI
- 10 units at 40% AMI
- 3 units at 50% AMI
- 25 units at 60% AMI
Total development cost: $14.3 million
Other funding: $2.1 million in City HOME funds and 4% payment in lieu of taxes (PILOT)