Affordable housing will stay for current residents at 40 Davenport in Midtown. The building, formerly known as the Milner Arms Apartments, has been renamed The Hamilton, and will undergo a $12 million rehab.
The 93-unit building, opened in 1913 as the Hotel Stevenson, was placed on the National Register of Historic Places in 1997. Renovations will include extensive HVAC and electrical systems updates.
Broder & Sachse Real Estate worked with the City of Detroit’s Department of Housing and Revitalization, as well as Midtown Detroit Inc.’s Stay Detroit Program, in order to relocate the current residents temporarily while the rehab takes place. According to a statement, “Broder & Sachse will assist with the process of finding interim accommodations and will support qualified residents with financial assistance for incurred expenses, including moving fees, security deposits and any differences in rental fees during renovation of 40 Davenport. Residents who make less than $40,000 will qualify for the program. Current residents making $40,000 and above will have first rights to new apartments.”
Qualified residents will work with United Community Housing Coalition for relocation during the rehab to find temporary units where they’ll pay their current rent. Any difference will be paid by the developer. When they move back, they’ll incur no moving costs and keep their legacy rental rates while leasing in the building.
The average affordable rent in this building is about $600. According to the agreement, qualified residents will pay a one-time increased rent of 5%, and rental rates will never increase by more than 1% per year.
Future residents of the building not currently in the building would pay market-rate rents.
By keeping the units affordable, the City will support the project request for tax abatements with the Council and contribute approximately $450,000 towards the costs of the rehab.
The agreement preserves occupancy in a building that doesn’t have federal or state income restrictions.
Broder & Sachse also rehabbed the Albert in Capitol Park in 2014, displacing former residents and rehabbing the building into upscale apartments.