Detroit is undergoing a significant shift towards higher rates of homeownership, with Black Detroiters now actively participating in the discussion surrounding property ownership during the city’s revitalization. Mayor Mike Duggan introduced the Downpayment Assistance Program (DPA) in March 2023 as a pivotal step in this transformation. The DPA has successfully facilitated the homeownership dreams of over 300 Detroit residents, and anticipation is building for Round 2 slated for 2024.
“There are a lot of Detroiters who are paying enough in rent to pay a mortgage, but just need some help with the downpayment costs,” said Mayor Duggan. “We created the downpayment assistance program so hundreds of Detroiters can kiss their landlord goodbye and have the security of owning their own home.”
Addressing Disparities and Wins in Homeownership
Recent data from the American Community Survey by the U.S. Census Bureau underscores a notable gap in homeownership rates. While 49.7% of Black Detroiters own their homes, compared to 57.9% of White residents, a groundbreaking study identifies Detroit as a national leader in the appreciating values of Black-owned homes, signaling a positive shift.
The statistics, while reflecting a current gap, also hold the promise of change. As Black Detroiters navigate their journey toward increased homeownership, the recognition of Detroit’s leadership in appreciating the values of Black-owned homes becomes a beacon of hope. It suggests that concerted efforts and initiatives can effectively counteract historical imbalances, leading to a more equitable and inclusive housing landscape.
Melvin Chuney shared that his participation in the 2013 Wayne County foreclosure auction resulted in the acquisition of five homes for $35,000. Notably, the lowest priced among them has now appreciated to $200,000. Likewise, Ty Barnes, a part of Detroit’s increasing African-American homeowner community, witnessed a substantial rise in his home’s value in the Atkinson Avenue Historical District.
“It has risen exponentially,” he said. “I would say the value has increased at least four times what I purchased it for.”
The positive shift in the values of Black-owned homes is not just a statistical anomaly but a testament to the resilience and determination of the community. It reflects the collective efforts of residents, policymakers, and community organizations working towards fostering an environment where homeownership is not just a dream but an achievable reality for all.
DPA: Bridging the Gap and Creating Opportunities
The DPA program, designed to provide up to $25,000 in downpayment assistance and funded by the American Rescue Plan Act (ARPA), has surpassed expectations in its initial round. With an initial allocation of $6 million doubled to $12.25 million, the program aims to empower around 450 individuals, primarily from low- and moderate-income backgrounds, to realize their dreams of homeownership.
Since 1996, National Faith Homebuyers, a nonprofit based in Detroit, has been at the forefront of change and ownership in the city. They have been instrumental in aiding metro Detroiters with diverse services, including down-payment assistance, first-time homebuyer counseling, and financial literacy programs, all aimed at facilitating home purchases and helping residents stay in their homes. Now they are implementing the
“I am so pleased to see how so many Detroit families have already benefited from the downpayment assistance program,” said Dina Harris, founder and president of National Faith Homebuyers. “It is our honor to serve Detroiters, allowing them to put down roots and grow in our great city.”
Round 1 Highlights:
- Nearly 500 applications were received.
- 385 applications approved, resulting in 314 closed deals.
- 93% of DPA recipients are African American.
- All participants lived in the City of Detroit for at least 12 months.
- Average funding received: $24,400.
- Average purchase price: $116,000.
- Average household income: $47,810.
- Average mortgage payment: $912.
- Impact on Communities and Neighborhood Revitalization
Beyond individual success, the DPA program actively contributes to neighborhood revitalization. Julie Schneider, Director of the Housing and Revitalization Department, emphasizes the program’s role in providing housing stability and fostering vibrant communities, especially in areas with a predominantly African American population.
“We are thrilled with the success of the Downpayment Assistance Program, and that so many Detroiters now have a house to call home,” Housing and Revitalization Department Director Julie Schneider said. “This program allows Detroiters to achieve housing stability through an investment that also brings vibrant neighborhoods. Congrats to the hundreds of Detroit who became homeowners in 2023!
The Ownership Initiative’s Impactful Role
The program’s design was a collaborative effort with The Ownership Initiative, a Black-owned impact advisory firm based in Detroit. Founded by CEO Krysta Pate, this initiative has played a pivotal role in shaping the program. Under Pate’s leadership, The Ownership Initiative has successfully launched over 30 initiatives across six states, channeling a combined total of $89 million into personal wealth building, affordable housing, and small-business empowerment opportunities.
Reflecting on the achievement, Pate expressed pride in contributing to the program’s design alongside public and private stakeholders. She emphasized the fulfillment of turning the homeownership dreams of many Detroiters into reality. Pate highlighted the power of unity in achieving shared goals, affirming that success is not merely a possibility but a promise fulfilled. Serving her hometown remains a source of joy and commitment for Pate and The Ownership Initiative.
Looking Ahead to 2024: What Prospective Homebuyers Can Do
As the 2023 funding cycle draws to a close, those who are aspiring to become homeowners in Detroit can take proactive steps to prepare for the anticipated reopening of the Downpayment Assistance Program (DPA) in 2024. Accessing valuable resources through the Detroit Housing Network website, including homebuyer education classes, is a crucial starting point. Additionally, engaging in One-on-One Financial Coaching, available through the Detroit Financial Empowerment Center, is essential for improving credit scores, reducing debt, and increasing savings – key elements that enhance financial readiness for homeownership.
Prospective homeowners are advised to secure a lender of their choice and engage in discussions about their home-buying budget. Obtaining preapproval not only clarifies financial capacity but also offers insights into feasible options within the determined budget. The final essential step is collaboration with a realtor. Initiating contact with a real estate professional to identify a suitable property and being prepared to make an offer when the DPA program reopens in 2024 ensures a competitive and streamlined approach to the homebuying process. These proactive measures collectively lay the foundation for transforming homeownership dreams into reality, guiding aspiring homebuyers along a thoughtful and strategic path to securing their dream homes in Detroit.
About Post Author
