Did you know that there are thousands of low-income housing units that are not regulated and at risk of being gentrified, if the City does not intervene? If these units are allowed to be rented at market value then thousands of Detroiters may be displaced.
This is a problem many have seen coming for as long as there has been talk about Detroit’s comeback. You’ve undoubtedly read at least one of the many think pieces on “Two Detroits” one that glows in the lights of downtown that’s ripe with new developments, bustling business and rents that start at about $1,200 for a one bedroom unit. Then there’s the other Detroit—the one that’s not downtown that contends with blight, public safety issues, over inflated property taxes and well you get the picture. Detroit Mayor Mike Duggan got the picture as well and ran his mayoral campaign on the promise to create “One City. For All of Us”.
In 2017, During Detroit Regional Chamber’s Mackinac Policy Conference at the Grand Hotel on Mackinac Island, Mayor Mike Duggan vowed that he would work diligently to undo over 50 years of reverse more than a half century of damaging urban planning decisions to rebuild Detroit as a city for everyone.
“Our principle is this: one city for all of us. That defines our planning,” Duggan told the audience.
He than began to outline eight principles to guide the City’s redevelopment, he also declared that he would not support any renovation project that will displace low-income residents and that he’s working to keep low-income residents in government-subsidized housing units that are at risk of being redeveloped with higher rents.
That was in 2017. Cut to 2020 and Mayor Duggan is moving toward the promises made almost three years ago.
On Monday, Mayor Mike Duggan and his Housing & Revitalization Department (HRD) announced the formation of a new Preservation Partnership. The announcement was made at Conner Creek Senior Apartments, which is run by American Community Developers, one of the largest providers of affordable housing in the city. ACD took over the property in 2019 and immediately extended its affordability commitment through 2042 and expanded the number of guaranteed affordable units.
A primary goal of the new partnership will be to identify apartment buildings that have low rents – not because they are required to, but because of the current condition of the buildings – and to help them be redeveloped in a way that preserves the affordability and prevents displacement.
This partnership is being touted–by the mayor’s office, as a major step in the Duggan’s commitment to preserve affordable housing in the city while also improving its quality and preventing displacement. The partnership brings together the city’s housing department, along with a number of experts in housing.
“This partnership adds a new layer to our efforts to make sure we are building one city for all of us,” Mayor Duggan said. “The revitalization taking place across our city is putting pressure on rent costs at buildings that have no requirement to provide affordable housing. So, we are going to proactively engage these building owners and offer them help with redevelopment of their properties in exchange for a commitment to keep the rents affordable for years to come, so Detroiters who stayed don’t have to live in fear of being pushed out.”
By 2023, HRD hopes to preserve 10,000 existing regulated affordable housing units in the city. This is in addition to the creation of new affordable housing in any new development that receives city funding or discounted land.
“Everyone deserves an affordable, safe place to call home,” said Melinda Clemons, vice president and Detroit market leader, Enterprise Community Partners. “Through this partnership, the team will help thousands of Detroiters stay in their homes and ensure that those homes remain affordable for years to come.”
Finally, as part of the larger preservation work, CHN Housing Partners and Cinnaire (an organization that supports community and economic development initiatives through creative financing and investments) are partnering to develop and deliver a unique lease-purchase program for residents in single-family rental units developed as part of the LIHTC program.
Eligible renters will be supported in becoming first-time homebuyers through a number of program components, including down-payment assistance and pre- and post-purchase counseling. In addition to preserving affordability, this program builds equity for low-income residents, improving the quality of single-family housing stock, and stabilizing neighborhoods.
“This program ensures homeownership opportunities become a reality for the many often left out of a primary way to build wealth in this country,” said Lucius Vassar, senior vice president, Detroit Market Leader for Cinnaire. “Homeownership sets the stage for economic security for low-income families to secure lasting stability through investment in one’s self, home, and community.”
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