Detroit Breaks Ground on Two Affordable Housing Developments

Officials from the city of Detroit and CVS Health joined developer MHT Housing Inc. to break ground on two 100 percent affordable housing developments in a pair of the city’s fastest growing neighborhoods.
631
A rendering of the Brush Park Apartments. // Courtesy of the city of Detroit
A rendering of the Brush Park Apartments. // Courtesy of the city of Detroit

Officials from the city of Detroit and CVS Health joined developer MHT Housing Inc. to break ground on two 100 percent affordable housing developments in a pair of the city’s fastest growing neighborhoods.

The announcement was made last week at the corner of Winder and Brush streets, the future site of MHT’s Brush Park Apartments. The $15-million development will feature 53 affordable units and about 3,800-square-feet of commercial space.

A mile away, MHT also has started construction on MLK on 2nd, a 33-unit, $9.5-million project that will also feature ground-floor retail, bringing more amenities to not just residents of the building, but all Detroiters who call these neighborhoods home.

Out of the combined 86 units across both developments, 63 will be deeply affordable for those earning 60 percent area median income (AMI) or below, with the remainder being available for households earning 80 percent AMI or below.

MHT is one of the largest builders and owners of affordable housing in metro Detroit, with more than 30 years of development experience. MHT, a 501(c)(3) nonprofit organization, also serves as the general partner or managing member of nearly 6,500 elderly and family units, a substantial portion of which are in the city of Detroit.

“MHT is proud to be able to provide high quality, affordable units in neighborhoods that are experiencing tremendous growth,” says Van Fox, president of MHT Housing. “Brush Park Apartments and MLK on Second are creating homes where lower-income Detroiters can have access to amenities and neighborhoods where they otherwise might not have been able to afford to live in quality housing.”

Located at 269 Winder St., the four-story Brush Park Apartments development will combine with three other adjacent vacant parcels — 2515 Brush, 281 Winder, 291 Winder in District 5. The apartments sit a block away from the City Modern development and will bring affordability and further density to this neighborhood just north of downtown and in the heart of the city’s entertainment and sports district.

The project will have three studios and 50 one-bedroom units, with 30 of those units being set aside as deeply affordable at 60 percent AMI and below. The development will offer 10 units at 30 percent AMI, 20 at 40 percent AMI, and 23 at or below 80 percent AMI, which equates to an AMI average of 55 percent for the overall development.

Of the 10 units for those earning up to 30 percent AMI, eight will have Project-Based Vouchers (PBVs) through the Detroit Housing Commission, ensuring that those residents won’t pay more than 30 percent of their income on rent and utilities. It is slated to open in early 2024.

The project will feature first-class amenities for its residents. Each unit will feature energy-efficient appliances, including washers and dryers, dishwashers, frost-free refrigerators, ovens, ranges with hoods, disposals, microwaves, and central air-conditioning. It will also feature a combination of private parking, with an attached parking lot, and street parking, allowing for adequate parking availability to meet both the resident needs and the city’s requirements.

In addition, MHT has worked closely with the city of Detroit, the local Historic District Commission, and other local partners to build and construct the property in accordance with neighborhood features and local design requirements.

In addition to the amenities and opportunities, more than a billion dollars in additional investment is currently planned for the immediate area, making it one of the most in-demand locations in the city.

The project received a 9 percent Low-Income Housing Tax Credit (LIHTC) allocation from the Michigan State Housing Development Authority in the February 2021 funding round. The development also was made possible through financing from Bedrock, a construction loan from Fifth Third Bank, and tax credit equity from CVS Health and CREA.

As the sole equity investor, CVS Health’s $11 million investment in Brush Park is part of the company’s ongoing efforts to address housing insecurities and the disparities that may be holding people back from achieving their best health, particularly among those in historically marginalized and underserved communities.

“Social determinants of health have a major impact on health outcomes, especially for historically marginalized communities,” says Dr. Joneigh Khaldun, vice president and chief health equity officer at CVS Health.

“That’s why addressing social determinants such as housing is an important part of CVS Health’s overall health equity strategy. By helping to provide affordable housing in communities like Detroit, we are giving people an opportunity to live healthier and helping to make a meaningful and lasting impact on their lives.”

Rendering of MLK on Second. // Courtesy of the city of Detroit
Rendering of MLK on Second. // Courtesy of the city of Detroit

MHT Housing is also developing MLK on 2nd, which is being built in partnership with Nassar Cos. This will be a four-story, mixed-use, affordable apartment building located at 3515 Second Ave. and feature 33 affordable, one-bedroom units, as well as about 1,000-square-feet of ground-floor retail space facing Martin Luther King Jr. Boulevard.

All units at MLK on 2nd will be restricted to those earning 60 percent area median income (AMI) or less, with 12 apartments restricted to 40 percent AMI. Five more apartments will receive Project-Based Vouchers (PBVs) through the Detroit Housing Commission, with those residents paying no more than 30 percent of their income.

MHT also will cover the utilities for the residents in the 17 deeply affordable apartments — 12 at 40 percent AMI and five PBVs. Like the development in Brush Park, MLK on 2nd is expected to open in early 2024, and also will offer affordable units on a centrally located, though vacant, site.

Each unit will feature energy-efficient appliances, including washers and dryers, dishwashers, frost-free refrigerators, ovens, disposals, microwaves, and central air-conditioning. The building is centrally located between Woodward Avenue and the Lodge, and between the campus of Wayne State University and downtown.

The Detroit Housing & Revitalization Department (HRD) has invested $1.27 million in federal HOME dollars into the project, and the development also received a 9 percent LIHTC allocation from the February 2021 funding round through the Michigan State Housing Development Authority (MSHDA). The development also received a construction loan from Fifth Third Bank and tax credit equity from CREA.