The City of Detroit has reached a significant milestone, as Mayor Mike Duggan, along with City Council members and numerous development partners, announced that the city has invested more than $1 billion in affordable housing over the past five years. This breakthrough aims to ensure that all Detroiters, regardless of income level, can find a home in the neighborhood they want.
The initiative has resulted in 71 developments built or in progress since 2018, providing 4,646 affordable housing units. The breakdown includes 1,612 newly built/renovated properties and 3,034 existing properties that have been updated. The City’s strategy focuses on preserving affordable housing for at least 30 years and securing housing for thousands of low-income families.
Mayor Duggan praised the effort at a celebratory event attended by more than 200 partners, saying, “For the past five years, we have committed to affordable housing across the region, which is unprecedented in Detroit and perhaps across the nation. It’s unprecedented,” he said. This is why you don’t see tent cities in Detroit like you do in other places. We still have a lot of work to do, but I can’t say enough about the team at the Department of Housing and Regeneration who have led this work, our council partners, our funders, and of course the developers who have done a fantastic job. It’s not enough. they keep doing it. ”
The Mayor specifically thanked HRD Director Julie Schneider, her predecessors Donald Rencher and Arthur Jemison, and several City Council members for their important roles. “Sheffield Council President has consistently advocated for and supported affordable housing development in Detroit since taking office in 2014, along with members Latisha Johnson, Mary Waters, Angela Whitfield Calloway, and Gabriella. Santiago Romero is a committed partner in our $203 million affordable housing initiative.”We announced in July 2022 that the City will reach a $1 billion investment milestone. We now have the resources we need to accomplish this goal,” Mayor Duggan added.
In his remarks, City Council President Sheffield highlighted the collective effort of the community. “We are extremely proud to celebrate this milestone in affordable housing investment with all of our developers, partners, and residents, highlighting our commitment to ensuring inclusive growth for Detroit.” It’s fair. Through advocacy, shared values, and consensus on a vision for the future, we will work together to forge a path to housing stability and economic upward mobility that provides opportunities for all residents to thrive during Detroit’s revitalization. I’m here. ”
A new project led by Detroit developer Amine Irving will soon begin, adding 150 units, all affordable, to the site between E. Jefferson and the Detroit River. The $45 million project will accommodate residents making 30% to 60% of the area median income, with a modular construction approach aimed at reducing costs and construction time.
The city’s efforts are supported by a variety of funding partners, including the U.S. Department of Housing and Urban Development, Michigan Housing Development Authority, Invest Detroit, LISC Detroit, and others. LISC Detroit manages the Detroit Future Housing Fund (DHFF). The foundation has contributed $32.8 million in low-cost loans and grants to support the city’s housing goals.
Highlighting the far-reaching impact of these investments, Julie Schneider, Director of Housing and Regeneration, said: “Behind this major milestone, we are committed to delivering the benefits of stability and security that affordable, quality housing brings. These investments across 46 neighborhoods and all of Detroit’s city council districts, benefiting thousands of residents, provide critical affordable housing resources that will serve Detroiters for decades to come and are part of our neighborhood development strategy. It will be the center.”
Detroit’s $1 billion investment in affordable housing contributed to a diverse population of 4,646 units tailored to different income levels. Here’s the breakdown of affordability within these units:
- The 39 units are affordable for households earning up to 120% of Area Median Income (AMI).
- The 649 units will serve households with incomes at or below 80% of AMI.
- 1,682 units will be priced at 60% or less AMI return.
- 1,381 units will be provided to households making 50% or less of AMI.
- 895 units are designated for residents with incomes at or below 30% of AMI.
Affordable housing is defined by costs that do not exceed 30% of a household’s monthly income. The current HUD Area Median Income (AMI) chart for Detroit shows various income thresholds and clearly shows what residents can afford to pay based on household size.
- For single-person households, the income limits are $19,900 at 30% AMI, $33,150 at 50% AMI, $39,780 at 60% AMI, and $53,050 at 80% AMI.
- For a two-person household, these limits increase to $22,750, $37,900, $45,480, and $60,600, respectively.
- As household size increases, the income limits also increase, adjusting to a maximum of $37,500 for an eight-person household at 30% AMI and expanding to a maximum of $100,000 at 80% AMI.
These standards ensure that a wide range of Detroit residents have access to affordable housing that meets their financial capabilities.
Donald Rencher, former Group Executive for Planning, Housing and Development for the City of Detroit and current President and CEO of the Hudson Weber Foundation, looks back with pride on Detroit’s progress in affordable housing. Ta. He recalled the city’s 2018 efforts to protect low-income residents from displacement and emphasized the role of inclusive housing in Detroit’s economic recovery. “This accomplishment was fueled by public-private partnerships, dedicated elected officials, and a vigilant population that kept their voices heard,” Rencher said. He acknowledged the continuing challenges, saying, “Detroit continues to face severe poverty, and affordable, stable housing plays a critical role in overcoming economic hurdles.” But a lack of subsidies is hampering progress. As we drive growth in Detroit, it is critical that we ensure inclusivity and prioritize affordable housing as a foundation for economic development. ”
In addition to marking economic achievements, this celebration strengthens Detroit’s commitment to inclusivity and stability in housing, ensuring all citizens have the opportunity to live in a safe and comfortable environment.
