The City of Detroit just scored a major win in the ongoing struggle to provide affordable housing. With a series of four 9% Low Income Housing Tax Credits doled out by the Michigan State Housing Development Authority (MSHDA), Detroit is poised to usher in nearly 200 units of affordable and supportive housing, as Mayor Mike Duggan announced. The new housing developments are intended to deeply assist those who find themselves at the lower end of the financial spectrum, specifically aiding residents whose earnings are 30% or less than the area median income. Detroit's government website broke down the details of these housing projects, which include the redevelopment of existing city landmarks and the construction of new units tailored to help families and those in dire need of support.
Realizing these projects is no small feat for Detroit, as the city has been locked in a continuous effort to meet the rising demand for affordable living spaces. Over the past six years, a staggering $1.7 billion has been funneled into affordable housing construction, and there's more on the way, thanks to a Payment instead of Taxes (PILOT) program designed to expedite the construction process. In a statement obtained by Detroit's government website, Mayor Duggan expressed his gratitude, “To receive four new LIHTC awards and for each of them to provide a level of affordability for Detroiters of lowest income levels supports our mission to build a city that has a place for everyone.”
The awarded tax credits tally up to more than $6.1 million annually over a decade, a financial backbone supporting the 183 new affordable housing units coming to the city. According to Tony Lentych, MSHDA’s Chief Housing Investment Officer, these investments represent "a meaningful step forward for affordable housing in Detroit." as reported by Detroit's government website. The efforts will not only pump new life into neighborhoods but promise long-term stability for residents. From the transformation of the Central United Methodist Church into a supportive housing complex to the revitalization of the Herman Gardens public housing site, the upcoming projects span a range of residential options.
Among the projects stands the Woodward + Adams development, combining historic preservation with social purpose. The impressive $18 million project, hosted by Central United Methodist Church, will provide 39 units of supportive housing to those wrestling with homelessness. In a statement provided to Detroit's government website, Amy Brown, Executive Director of Noah at Central, shared that their "transformational Woodward + Adams housing project will make our historic location into a home and community that is welcoming to ALL Detroiters." Notably, these units also come with the promise of on-site supportive services and a communal space for non-profits and mission work.
Conversely, the larger Corktown area will see the continuation of Bagley Central, a component of the Choice Neighborhoods Initiative bolstered by a $30 million HUD grant. The expectation is for the first phase to open in 2027, with hopes pinned on combating the area's rising property values and rents. Similarly, Gardenview Townhomes and Gardenview Apartments will spring up where the former Herman Gardens once stood, offering a collection of townhomes and apartments that ring in with around $14 million in tax credits for each phase. The developments will feature 101 units with varying bedroom counts, all pegged to remain affordable. Some residents will be safeguarded by Project-Based Vouchers, ensuring rent remains within a reasonable portion of their income.
