More than 300 affordable homes are being preserved in Detroit.
The city along with the Local Initiatives Support Corp.’s Detroit office announced the recent deal closings that involve three unique properties.
"As neighborhood values rise across Detroit, we have to make sure longtime residents aren’t pushed out of the communities they’ve built,” said mayor Mary Sheffield. “Preserving affordable housing is one of the most effective ways to ease the risk of displacement while keeping Detroit’s growth inclusive. Thanks to our partnership with LISC Detroit and the Detroit Housing for the Future Fund (DHFF), we’re protecting hundreds of apartments and ensuring that Detroit families and seniors have safe, stable housing they can count on for years to come.”
The long-term preservation of Marlborough Apartments, Van Dyke Village Apartments, and 8330 on the River represent a significant step forward in the city’s strategy to protect existing affordable housing and prevent displacement.
Together, the developments will deliver 321 rehabilitated and preserved housing units supported through public-private investment and DHFF, a mission-driven private investment fund that directs capital to preserve and expand affordable housing across the city.
Originally built in 1927, the two historic buildings now known as Marlborough Apartments provide 23 multifamily units, 13 of which are affordable at 50% and 60% of the area median income (AMI), with guaranteed affordability for 11 years. Jefferson East, a nonprofit dedicated to supporting neighborhood development, acquired the property in 2018. Financing included a $1.8 million permanent loan from DHFF, $3.9 million in HOME funds from the city, and $750,000 in historic tax credit equity from Twain Financial Partners.
Van Dyke Village Apartments is a 16-unit multifamily property built in 1926 in the historic West Village neighborhood. Developers Cecily King and Clifford Brown acquired the building to preserve affordability and reinvest in the community. The property includes 16 two-bedroom and one-bath apartments. Eight units are affordable at or below 50% of the AMI, six between 60% and 80% of the AMI, and two above 80% of the AMI, with affordability protections in place for just more than 11 years. The $1.55 million rehabilitation effort benefited from the DHFF Emerging Developers Matching Grant, a program designed to expand the pipeline of Detroit-based preservation and rehabilitation projects by providing up to $100,000 in matching funds for predevelopment and soft costs. Additional funding support included city of Detroit ARPA [American Rescue Plan Act] funds and sponsor equity.
Located in Detroit’s Gold Coast neighborhood, 8330 on the River preserves 282 senior housing units restricted to households earning between 50% and 80% of the AMI, with affordability protections for 11 years. Preservation of Affordable Housing, a national nonprofit developer, has owned the property since 2003 and specializes in safeguarding affordable housing from rising costs and physical decline. Financing included the first loan through Michigan State Housing Development Authority’s (MSHDA’s) Section 236 preservation program and received a $5 million senior mortgage loan from DHFF to refinance the existing MSHDA debt. DHFF’s refinancing allows POAH to invest more in the building’s resilience by substantial savings annually in debt payments.
"DHFF and LISC Detroit are committed to not only expanding affordable housing in the city, but also to ensuring that Detroiters have real opportunities to live in and benefit from high-quality, affordable homes," said Rob Lockett, executive director of LISC Detroit.