Last week,
we wrote about the potential effects of Detroit's inclusionary housing ordinance on development and low-income residents' ability to afford housing in the densest parts of the city. One aspect of the ordinance that was less clear, however, was the The Detroit Affordable Housing Development and Preservation Fund, which was supposed to set aside $2 million a year to use towards housing projects affecting people at 50 percent AMI or lower.
Well it appears that the city of Detroit will massively increase the amount of money set aside for projects like that. In his State of the City address, Mayor Mike Duggan announced plans to establish a $250 million multifamily affordable housing fund, and the city has just released more details about it.
The city hopes to accomplish two goals by 2023: preserve the affordability of 10,000 units of multifamily housing, and build 2,000 new affordable multifamily housing units. It plans to do so in targeted areas along existing commercial corridors such as Gratiot Avenue, Vernor Highway, Mack Avenue, and others.
Money for the fund, called The Affordable Housing Leverage Fund, will come from grants, low-interest loans, federal subsidies, and the city's budget.
"The preservation and creation of affordable housing is the cornerstone of our growth strategy," said Mayor Mike Duggan. "Affordable housing offers stability for the city's low-income residents and provides options to households at a range of incomes in all neighborhoods. This is what we are talking about when we say that we are building one city for all of us."
Part of that strategy will include shoring up existing affordable housing through enhanced oversight and assistance, addressing chronic homelessness by improving supportive housing, and much more.
Read the city's plan for the Affordable Housing Leverage Fund here.
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