‘Affordable’ housing planned in Detroit in Old Redford, Midtown, Woodbridge and Morningside

The city announced Thursday that four new housing developments in Detroit will create nearly 200 new units for residents at risk of homelessness or having trouble affording rent.

All 183 units will be accessible to residents who earn 60 percent of the area’s median income — or $42,960 for a family of two — though many are for residents with deeper affordability needs. The projects will also include 20 apartments at market price.

The units will be built in Old Redford, Midtown, Woodbridge and MorningSide neighborhoods and were funded with the help of nearly $38 million in low-income housing tax credits from the state. Finally, $60.9 million will be invested in the units.

Units that rent at 60 percent of the area’s median income will be $940 per month for a one-bedroom and $1,074 a month for a two-bedroom. Units renting at 30 percent of the median income in the area would be $470 per month for a one-bedroom unit.

The first project, at St. Matthew’s School on Morningside, will convert the former Catholic school into 46 housing units on St. Matthew. The school, built in 1930, will be converted into apartments at a cost of $17.4 million. In addition to $9.8 million in LIHTC funding over 10 years, Catholic Charities of Southeast Michigan and nonprofit housing developer Cinnaire Solutions will receive $3 million in federal HOME funds from the city.

The transfer would create 13 units at 50 percent of the region’s median income and 33 units at 60 percent of the region’s median income. But more than half of residents will pay less: The project will receive 25 coupons for permanent supportive housing units from the Michigan Housing Development Authority. These vouchers will ensure that residents will not pay more than 30 percent of their income for rent and utilities, no matter what they earn.

Furthermore, the city is unveiling a new rent support reserve, which will cover the cost of rent for residents of seven units who cannot pay the full cost. These residents will not pay more than 30 percent of their income for the units, and the city will collect the rest.

Mayor Mike Duggan was scheduled to hold a press conference at 2 p.m. to announce the project and the fund.

“This new tool is the latest way to help the Duggan administration achieve greater affordability for residents,” Kelly Vickers, chief development and investment officer for the city’s Department of Housing and Revitalization, said in a statement. “We hope this project will be the first of many projects to take advantage of these subsidies as we work to improve access to quality, affordable housing in Detroit.”

The bottom line would leave eight units renting at 60 percent of average income and six units at 50 percent. On-site health care for the permanent support units in the residences will be provided by Ascension Michigan and Southwest Counselling Solutions will be on site as well. The former school’s gymnasium will be converted into a community space.

“Adapting this school into affordable housing, on this beautiful and historic campus in St. Matthew, allows us to be a part of the vibrant MorningSide, East English Village and Cornerstone communities,” said Paul Bruson, CEO of Catholic Charities of Southeast Michigan. . in the current situation. “Partnering with Ascension to improve access to health and wellness in the neighborhood will also benefit residents on campus and in the vicinity.”

The other three projects are all new constructions.

4401 Rosa Parks, on Rosa Parks Boulevard and Calumet Street, will be built on a vacant lot that was once part of the Wilbur Wright School campus. The 60 housing units will include 20 apartments at market price, in addition to 14 units at 60 percent of the average income in the area, 15 units at 40 percent and 11 apartments at 30 percent.

The city said the project would help ease demand and higher rents in the popular Woodbridge neighborhood. The development, which received $8.9 million in LIHTC funding over a decade on a $16.7 million project, is scheduled to begin in the first quarter of 2023 and open in the third quarter of 2024. Cinnaire Solutions Corp and Woodbridge Neighborhood Development Corp. . developers. They are also expected to ask for a payment in lieu of taxes to help fund the project.

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