Mayor Duggan, LISC Detroit celebrate 1st affordable housing project completed through Detroit Housing for Future Fund
$3.19M renovation of The Charlotte turns abandoned apartments into beautiful, quality affordable housing in Detroit’s Gateway Community, near Boston-Edison.
100% of apartments are affordable housing, with developer charging rents that are below the maximum AMI.
DETROIT (October 6, 2022) – Mayor Mike Duggan and Council President Mary Sheffield joined Detroit Local Initiatives Support Corporation (LISC), developers and the community today to officially open The Charlotte, the first project to be completed under the Detroit Housing for the Future Fund (DHFF), a LISC managed private investment fund aimed at increasing access to and availability of affordable housing in Detroit.
Developers Tom Anderton and Adam Noel of Charlotte Detroit LLC tapped the DHFF for a $2.55 million loan to turn the previously abandoned 1923-built, three-story apartment building into 28 quality affordable housing unit. The Charlotte renovation saw full rehabs to all units, a new roof, new windows, and a new HVAC system. Amenities include on-site laundry facilities, large common areas inside and out, and plenty of greenspace.
The $3.19 million redevelopment of The Charlotte – at 10210 Second Ave. at Glynn Court, in the Gateway Community in District 5 – includes 12 one-bedroom units, 13 two-bedroom units and three studio apartments. All 28 units are reserved as affordable housing. Nine apartments are capped at 60% area median income (AMI), and the other 19 cannot exceed 80% AMI. However, Anderton and Noel are charging rents that are closer to 55%-65%. They will charge $725-$940 for a studio (80% AMI is $1,254); $900-$1,075 (80% is $1,343) for a one-bedroom; and $1,250-$1,400 (80% is $1,612) for a two-bedroom.
“I would like to congratulate and thank the developers and Detroit LISC for helping us continue to build a city where all Detroiters have access to quality affordable housing, no matter their income,” Mayor Duggan said. “The Charlotte has taken a blighted, abandoned apartment building and turned it into quality, beautiful affordable housing in the Gateway Community neighborhood.”
Over the past six-plus years, Anderton and Noel have invested in the neighborhoods around Boston-Edison. Their efforts have thus far resulted in some 150 units of housing, mostly in multi-family buildings, but also homes and duplexes – almost all of which are affordable below AMI rates and income requirements.
“We have continued investing in Detroit in the hopes of creating updated, safe and affordable places to stay for the working class,” Noel said. “We are often someone’s first apartment after college, or when moving into the city, because our pricing is fair and offers access to the beautiful areas around Boston-Edison, which continues to grow and thrive.”
Since 2018, the City of Detroit has helped to preserve 6,127 units of affordable housing in neighborhoods across the city, including 5,960 that are at or below 60% AMI. There also have been 864 completed new-construction affordable housing units in that time period – 525 of which are at or below 60% AMI – with another 646 under way.
The Detroit Housing for the Future Fund is playing a big role in that. The DHFF is a private investment fund aimed at directing $75 million in capital to affordable housing in Detroit, and launched in 2020 with an initial capitalization of $48 million, anchored by a $15 million commitment from JPMorgan Chase and a $10 million guarantee from The Kresge Foundation. DHFF is managed by LISC Detroit and LISC Strategic Investments, and is a part of the larger Affordable Housing Leverage Fund, which is an initiative in partnership with the City of Detroit’s Housing & Revitalization Department.
“Investing in quality, safe and affordable housing is essential for economic mobility of Detroit families and individuals,” said Camille Walker Banks, executive director of LISC Detroit. “Through the Detroit Housing for the Future Fund, we are committed to providing access to capital for equitable developments that support low-and moderate-income families to thrive in neighborhoods such as the Gateway Community.”
To date, six other DHFF projects are under construction in neighborhoods across the city, with 173 out of the 211 combined units among them set aside as affordable housing. Mayor Duggan and Council President Sheffield helped kick off renovations Monday at Le Chateau at Mound and 7 Mile roads in District 3, which will see 30 units renovated for existing and new residents. All its units will be at 40%-50% AMI. Meanwhile, The Belnord in Midtown is wrapping up its $2.9 million renovation and will bring new affordable units as well as rehabs and extension of affordability on others, representing 29 units with rents at 50%-80% AMI. “Ensuring that Detroiters have access to housing that is quality, safe and affordable is one of our department’s biggest goals,” said Julie Schneider, director of the Housing & Revitalization Department. “The Detroit Housing for the Future Fund is a key tool in tackling inequality and housing instability in our city. I would like to thank LISC and the fund’s corporate givers for helping us work toward a better Detroit for all Detroiters.”
About the Detroit Housing for the Future Fund The Detroit Housing for the Future Fund (DHFF) is a private investment fund launched in 2020 focused on investing in the development and preservation of affordable housing in Detroit. The DHFF is managed by Local Initiatives Support Corporation (LISC) Strategic Investments and LISC Detroit. DHFF was created in partnership with the City of Detroit’s Housing & Revitalization Department as part of the Affordable Housing Leverage Fund (AHLF) initiative. The DHFF deploys flexible loan capital and private grants to complement and leverage public investment through the City of Detroit and Michigan State Housing Development Authority, as well as tax credits and other affordable housing finance tools. For investor inquiries and more information about LISC Strategic Investments, please visit https://www.liscstrategicinvestments.org/detroit-housing-for-the-future-fund
About Detroit LISC Detroit LISC is a local organization founded in 1990, within the Local Initiatives Support Corporation network that includes 38 offices in urban areas across the country as well as a rural office that serves more than 44 states. National LISC, founded in 1979, is the largest national community development financial intermediary, combining corporate, government, and philanthropic resources to help community-based organizations revitalize their neighborhoods.
LISC’s mission is to help forge resilient and inclusive communities of opportunity across America. The goal is that every low-income community has the chance to thrive. LISC equips struggling communities with the capital, strategy, and know-how to become places where people can thrive. Working with local leaders we invest in housing, health, education, public safety, and employment — all basic needs that must be tackled at once so that progress in one is not undermined by neglect in another. Sharing our expertise of 41 years, we bring together key local players to take on pressing challenges and incubate new solutions. With them, we help develop smarter public policy. Our toolkit is extensive. It includes loans, grants, equity investments and on-the-ground experience in some of America’s neediest neighborhoods.
BEFORE: The Charlotte was a blighted eyesore in the Gateway Community for years before the renovation.
AFTER: Thanks to the Detroit Housing for the Future Fund, The Charlotte is now 28 units of affordable housing and has turned blight to beauty.
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