Four major housing projects in the City of Detroit have been selected by the Michigan State Housing Development Authority (MSHDA) to receive a limited number of 9% low income housing tax credits (LIHTC) that will help create or preserve 385 units of affordable housing across the city, Mayor Mike Duggan announced today.

The four developments, which represent a combined investment of $110 million, are receiving $4.4 million in tax credits from MSHDA.

In total, 271 units of existing affordable housing that were set to expire soon will be renovated and will keep their affordable status for another 30 years. Another 114 new affordable units, nearly half of which will be for families earning less than 30% of the area’s average Median Income (AMI), will be built.

“What makes this so important is that we will be able to guarantee that 271 existing affordable housing units will keep their status for another 30 years,” said Mayor Duggan. “That represents 271 families that know they will be able to afford to stay in their homes and take part in the recovery they have waited so long to see.”

To accomplish this, developers working with the City’s Department of Housing & Revitalization applied for and were awarded a series of 9% LIHTCs. The 9% LIHTC award is the most valuable and competitive affordable housing tool in the country, because it leverages up to 90% 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 (below 30% AMI), including those who have experienced homelessness.

The four developments are spread across several Detroit neighborhoods, including Brush Park, Midtown, Oakman Boulevard Community and Core City Neighborhoods.

The selected projects are:

Roberts III – All 197 units in this building will be preserved as affordable housing for the next 30 years for the senior citizens who occupy this complex. Incomes at this complex range from 60% of AMI to less than 30 percent AMI. The project has support from the Detroit Housing Commission in the form of project based vouchers to support lower income units. Total Project Cost: $16.4M

Ryan Court II – All 74 units will be preserved as affordable housing. Incomes at this complex also range from 60% of AMI to less than 30% AMI. The development, which spans several blocks near Oakman and Livernois is a mix of new construction and rehabilitation of older buildings. Total Project Cost: $9M (Phase 2 Only). Ryan Court Phase 1 is one of only a few projects nationally to preserve existing affordable housing units through new construction with an additional investment of $16M.
Peterboro – Renovations proposed at the property will result in 56 units (42 two-bedroom units and 14 three-bedroom units) of Permanent Supportive Housing that will be targeted to homeless families who meet MSHDA’s criteria for Permanent Supportive Housing. In order to assist the families that will reside at the building, COTS will be requesting 38 project based vouchers from MSHDA and has received conditional awards for 9 project based vouchers from the Detroit Housing Commission and project rental assistance for 9 units through the HUD Section 811 program. Total Project Cost: $14.5M

Brush Park South – 58 (20%) of the 287 units in this new mixed-income construction development will be reserved for residents earning 60% AMI or less. This project, which will revitalize 19 vacant city-owned parcels, is being supported by $2.3 million in HOME funds. The project also has support from the Detroit Housing Commission in the form of project based vouchers to support lower income units. Total Project Cost: $70M (estimated)

Collectively, these awards to the city of Detroit represent approximately 40% of the total available 9% LIHTCs statewide in this round of applications. Director of Housing & Revitalization Arthur Jemison, thanked MSHDA for recognizing the significance of each project and putting its most valuable resources where they are most needed.

“After many months of work to shape a project pipeline with MSHDA that reflects both state and city investment priorities, this set of project awards is real progress,” said Jemison. “It includes projects in our target areas for residential density; creates mixed-income in downtown midtown; addresses family homelessness; and preserves key assets threatened with expiration and obsolescence.”

 

About the LIHTC Program
The low-income housing tax credit (LIHTC) program is one of the federal government’s primary policy tools for encouraging the development and preservation of affordable rental housing. These federal tax credits are awarded to Developers of affordable housing via a competitive application process administered by the Michigan State Housing Development Authority (MSHDA) on a biannual basis. Once awarded, developers typically sell these tax credits to outside investors in exchange for equity to develop affordable housing.

Also On The Michigan Chronicle:
comments – Add Yours