At a press conference today, Gov. Gretchen Whitmer and Mayor Mike Duggan announced that the Michigan State Housing Development Authority (MSHDA) has awarded six Low-Income Housing Tax Credit (LIHTC) awards to five affordable housing developments in Detroit. The credits total more than $6 million and will go towards financing more than $100 million worth of housing investment.
In total, 553 units will be created or preserved, 92 percent of which will be affordable to those making between 30 to 80 percent of the area median income (AMI) or about $16,050 to $42,800 annually.
The projects are in Midtown, East Riverfront, Brush Park, and Milwaukee Junction—parts of the city where rents have risen sharply in recent years. Here are the five projects and details for each.
- 7850 East Jefferson: 150 new units in a new building near Belle Isle developed by Ginosko. All the units will be designated as affordable for the next 45 years for tenants making between 30 to 60 percent AMI. It was awarded $1,778,730.
- 258 East Milwaukee Avenue: 25 new units (20 affordable) by a partnership between MHT + Detroit Catholic Pastoral Alliance. Units will start at 40 percent AMI ($573 a month for a one bedroom) and go up to 80 percent AMI. It was awarded $570,203.
- Brush + Watson: 60 units (48 affordable) in a new development. The affordable units will be reserved for residents earning between 30 to 80 percent AMI. This is part of an American Community Developers–led project that’s bringing a mix of flats, live-work and, walkup units across an entire city block in Brush Park. It was awarded $1,500,000.
- Cathedral Tower: The eye-catching, 236-unit building in Midtown will be renovated and preserved as affordable for those making between 40 and 80 percent AMI. The project is being developed by a partnership of MRK Partners and Bedrock. It was awarded $1,500,000.
- Orchestra Place Apartments: The 82-unit senior affordable housing complex will be renovated and preserved as affordable at 60 percent AMI by Larc Properties, Inc. It was awarded is $887,876.
Affordability has been a hot-button issue in the city of late. One major concern is the potential expiration of around 45 percent of the city’s affordable housing tax credits by 2023. In 2018, the city announced the creation of the $250-million Affordable Housing Leverage Fund to build and preserve hundreds of affordable units. That total included an expected $50 million in federal funding.