The Michigan State Housing Development Authority, which administers federal housing funds, has awarded six competitive low-income housing tax credit (LIHTC) awards to five affordable housing developments in Detroit, where 45 percent of the 14 total credits were awarded in this round statewide. The credits will help create or preserve 536 units of affordable housing.
Together, the credits represent more than $100 million worth of housing in the city. In total, 318 units of affordable housing that were set to expire soon will be extended for another 45 years. New construction projects will create a total of 235 units, with 218 reserved as affordable. Many of the new and preserved units will serve residents making between 30 and 80 percent of the area median income, or about $16,050-$42,800 each year.
“If we’re going to make sure everyone in Michigan, no matter their community, has the opportunity to get ahead, we must get to work to ensure safe, affordable housing for everyone,” says Michigan Gov. Gretchen Whitmer. “Because of this partnership with MSHDA and Mayor Duggan’s office, we are now one step closer to that goal. These projects will be critical in helping Detroiters and people all over the state move into affordable homes. It’s good for our families, for our economy, and for the future of our state.”
The city’s Department of Housing and Revitalization worked with developers, which applied for and were awarded a series of 9 percent LIHTCs. This is the most valuable and competitive affordable housing tool in the country because it leverages up to 90 percent in equity to build affordable housing units. It also gives developers the ability to serve families and individuals who are at the lower end of the economic spectrum, including those who have experienced homelessness.
“Detroit’s comeback depends on keeping every resident we have and attracting new residents, no matter their income, to join them, so preservation and creation of affordable housing is critical to our growth,” says Detroit Mayor Mike Duggan. “We are grateful to the governor and our partners at MSHDA for their support on these projects. Thanks to them, hundreds of Detroiters will be able to afford to stay in their homes and take part in the recovery they have waited so long to see.”
One of the projects, 7850 E. Jefferson Phase I and II, by developer Ginosko, received two awards totaling about $1.8 million. All 150 units will be designated as affordable housing for the next 45 years, and incomes at the complex range from 30-60 percent of the area median income. The project has support from the Detroit Housing Commission in the form of project-based vouchers to support lower-income units. The total cost of the project is $27.3 million.
MHT and Detroit Catholic Pastoral Alliance will add 25 units to the Milwaukee Junction neighborhood, and 20 units will be affordable at varying levels. It was awarded $570,203, and the total project cost will be $7.2 million.
A project that will include 60 units to be built on vacant city-owned parcels in the Brush Park neighborhood will reserve 80 percent of the units for residents earning between 30 and 80 percent of the area median income. The project is among more than 1,000 units planned for the area, was awarded $1.5 million, and will cost a total of $19.1 million.
Cathedral Tower in Midtown will now offer all of its 236 units as affordable housing after renovations and preservation. Half will be reserved for residents making 40 percent of area median income and half will be reserved for those making 80 percent. MRK Partners and Bedrock are the developers, and the award is $1.5 million toward the $27 million project.
Finally, Midtown’s Orchestra Place Apartments, an 82-unit senior affordable housing complex, will be renovated and preserved as affordable at 60 percent of the average median income. Larc Properties Inc. will lead the project, which was awarded $887,876. The total project cost is $21 million.
“As the city’s revitalization continues, we are focused on not only developing high-quality affordable projects that fit in with the existing culture of the neighborhoods, but also preserving every affordable unit we have so that we can retain the residents who have stayed,” says Donald Rencher, director of housing and revitalization for the city of Detroit. “Our partners at the state level have put their trust in Detroit with these awards, and we can’t wait to get to work.”
The low-income housing tax credit program is one of the federal government’s primary policy tools for encouraging the development and preservation of affordable rental housing. The credits are awarded through a competitive application process administered by the Michigan State Housing Authority on a biannual basis. Once awarded, developers typically sell these tax credits to outside investors in exchange for equity to develop affordable housing.
 awards to five affordable housing developments in Detroit, where 45 percent of the 14 total credits were awarded in this round statewide. The credits will help create or preserve 536 units of affordable housing.){kind=link}