Bedrock, an affiliated company to Quicken Loans Inc., and the city of Detroit today announced an agreement which will result in an estimated 700 affordable housing units. The residential housing will consist of both new construction and the preservation of existing affordable housing that would have likely converted to market rate.
The agreement reflects Detroit and Bedrock’s commitment to the redevelopment of the greater downtown as an inclusive, mixed-income community that provides quality housing opportunities for all.
“It is important that a wide range of housing options, including affordable ones, are available in Detroit’s growing marketplace. Jobs and economic opportunity for Detroiters has been part of our mission since we started investing in Detroit seven years ago,” says Dan Mullen, president of Bedrock. “We are excited to further ramp up our commitment to invest in quality, affordable housing options to Detroiters representing a broad economic spectrum.”
Over the next several years, Bedrock plans to develop up to 3,500 residential rental units in Detroit. The agreement, which is being submitted to the Detroit City Council, provides that one out of every five, or 20 percent, of those units will be affordable housing for households whose income is 80 percent of the Area Median Income (AMI) or less. The affordable units will be primarily located in the greater downtown area, where affordable housing options are needed to ensure downtown and Midtown remain accessible for people of all incomes.
“This represents the city’s largest developer proactively committing to invest in new affordable housing and preservation in the city’s strongest neighborhoods where it is critically needed,” says Arthur Jemison, Detroit’s Director of Housing and Revitalization.
Bedrock’s first two ground-up residential construction projects include affordable housing. At 28Grand in the Capitol Park district, Bedrock is nearing completion of a mixed-income development that will include 85 units dedicated to households making 60 percent of the Area Median Income (AMI) or less. Bedrock has also started construction on a 54-unit affordable development for seniors as part of the new City Modern mixed-income development. The new Brush Park neighborhood, located at 124 Alfred St., will be dedicated to seniors whose incomes are between 30 percent and 60 percent of the AMI.
“This important property sat dormant for nearly 60 years until Bedrock introduced its exciting vision for Brush Park. Through this project, we have come together as one city, community, and design team,” says Mona Ross-Gardner, chair of the nonprofit Brush Park Community Development Corp. “The Bedrock project team listened to our vision and melded it into theirs to create a work of art, which pays homage to the past and looks toward the future. This unique blueprint accommodates all age groups, focuses on state-of-the-art safety protocols, and adds needed services for our growing community.”
More than 2,000 units of existing affordable housing are threatened by expiring rental assistance contracts and will face strong pressure to convert to market rate developments. These units typically serve 60 percent AMI and below households and there are large clusters of them in downtown and Midtown — many in senior buildings.
As part of its overall commitment, Bedrock will not only be developing new affordable housing, but preserve existing developments as affordable housing for another 30 years. This will keep long-time residents in their homes and create an environment where future residents will still have access to affordable housing options in greater downtown.
“This agreement between the City and Bedrock is a big step toward creating and preserving mixed-income communities in downtown and Midtown,” says Roger Myers, CEO of Presbyterian Villages of Michigan (PVM) and an active member of the Senior Housing Preservation of Detroit (SHP-D) coalition.