Mayor Mike Duggan joined MHT Housing Inc. and City officials today to celebrate the completion of a $19.7 million renovation of Parkview Place, an affordable housing community in Elmwood Park that is home to 198 low-income seniors.
In addition to all residents getting apartment makeovers, the affordability of Parkview Place was preserved for an additional 45 years, meaning none of its residents will have to worry about being priced out of their homes or the building going market rate. Nor will the seniors see their rents increase because of the upgrades. The building, located at 1401 Chene St., is near downtown and within a short walking distance of a host of amenities, including Elmwood Central Park, the Coleman A. Young Recreation Center and a grocery store.
“As we continue to bring our neighborhoods back, we will continue to ensure that longtime residents will be able to take advantage of our city’s comeback, regardless of their income,” Mayor Duggan said. “Thanks to MHT Housing, nearly 200 seniors will get to stay in their upgraded apartments and can rest easy knowing that they can remain in their home for as long as they want without having to pay a penny more in rent than they already do.”
Each apartment received approximately $41,000 in upgrades, including new appliances; kitchen cabinets, countertops, sinks and faucets; new flooring; new lighting; new bathroom vanities and countertops and tub inserts and surrounds. All of Parkview’s residents were allowed to stay at the property during the work.
Parkview Place also received new elevators, a new roof, new windows, new entry doors, a new boiler and chillers, new water pumps and boilers; a new fire suppression system; and a new parking lot and landscaping upgrades.
“MHT Housing is committed to providing quality affordable housing for Detroit’s senior community,” said MHT Housing President Van Fox. “We are proud to not only upgrade every home at Parkview Place, but also to guarantee these apartments will remain affordable for seniors for the next 45 years. I thank our residents for their patience while we completed these improvements, and Mayor Duggan and the City of Detroit’s Housing & Revitalization Department for their support in making this possible.”
The renovation and affordability extension was made possible in part through a 9 percent Low Income Housing Tax Credit (LIHTC) award by the Michigan State Housing Development Authority (MSHDA). Additionally, MHT renewed its existing 42-unit Section 8 contract with the U.S. Department of Housing & Urban Development (HUD) and secured an additional eight units of project-based Section 8 vouchers from the Detroit Housing Commission (DHC).
The area median income (AMI) breakdown for Parkview Place is as follows.
- 10 units at 40 percent AMI ($600 a month for a one-bedroom).
- 50 units at 50 percent AMI ($750 a month).
- 138 units at 60 percent AMI ($900 a month).
However, the Section-8 contract with HUD and the project-based vouchers through the Detroit Housing Commission mean that the most those tenants receiving them will never pay more than 30 percent of their income for rent and utilities. The vouchers pay the difference between the 30 percent of the tenant’s income and the rent cap under AMI regulations.
“A Detroiter’s inability to pay high, market-rate rents does not mean they do not deserve to live in a quality home,” said Sandra Henriquez, CEO of the DHC. “That’s why the Detroit Housing Commission is proud to partner with MHT Housing to provide project-based vouchers for residents of Parkview Place.”
The limited partner syndicator on the deal is CREA, and Citizens Bank is the investor and construction lender. Churchill Stateside Group provided permanent lending. The City is providing a 7 percent Payment in Lieu of Taxes (PILOT) agreement. No other gap financing was needed to complete the transaction.
This is the latest example of how the Detroit Housing & Revitalization Department are working hard to prevent that from happening as the City works toward its goal of preserving 10,000 units of existing affordable housing and the development of 2,000 units of new affordable housing through multiple public and private housing initiatives. As of today, more than 1,000 new affordable housing units have opened or are under construction in the city while more than 7,000 existing affordable units have had, or soon will have, their affordability extended.
“Protecting affordable housing is one of the Housing & Revitalization Department’s most important missions,” said Julie Schneider, director of the City of Detroit’s Housing & Revitalization Department. “We are committed to ensuring that Detroiters can afford to stay in their homes and in the city. We thank MHT Housing for their continued commitment to providing quality affordable housing in neighborhoods across the city.”
For more information about MHT Housing, go to www.mhthousing.net.