● LISC Detroit and Detroit developer Bobby Lewis announce rehab of units and affordability of apartments as low as 50% AMI will now be guaranteed for the next 12 years.
● Project on Junction Street is among 12 funded by Detroit Housing for the Future Fund (DHFF) since the fund’s inception in fall of 2020.
(March 29, 2023) DETROIT – Local Initiatives Support Corporation’s Detroit office (LISC Detroit) and Detroit developer Bobby Lewis announced today that renovations are underway on 1403 Junction in Southwest Detroit, preserving another 10 units of affordable housing in the city, thanks to support from the Detroit Housing for the Future Fund (DHFF).
Built in 1928, 1403 Junction is the first DHFF project in Southwest Detroit. The project preserves affordable housing for existing residents in a neighborhood seeing significant growth and new investment. The project is also the first for Bobby D. Lewis, an emerging developer of color from Detroit. Lewis approached DHFF in September 2022 for financing, and DHFF provided a $603,500 acquisition/rehab loan as well as a Developer of Color predevelopment matching grant to Lewis’ Porter-Junction Apts LLC. The loan covers acquisition, hard and soft costs for light rehab of the property, including the addition of smoke alarms, emergency lighting, upgrades to common areas, and most importantly, the loan preserved the existing affordability for the next 12 years.
This is my first project as a developer” said Bobby D. Lewis of Lewis Holdings Development, LLC. “The assistance from DHFF and the Developers of Color predevelopment matching grant were vital tools to help me get established. I am excited for more projects in the future.”
At the time of acquisition, the building was 100% occupied but required rehab to give residents the quality housing they deserve. Lewis has invested more than $100,000 in equity to complete the acquisition and rehab, as well as lock in long-term affordability for the next 12 years. Nine of the 10 units are rent/income restricted up to 50% AMI, with monthly rents currently between $600 and $735. The lone two-bedroom unit rents for $925 per month.
The DHFF’s Developers of Color Matching Grant Award initiative is designed to grow the pipeline of minority-led affordable housing and preservation projects, and offers up to $100,000 in matching funds to cover a portion of a project’s predevelopment expenses and soft costs. The grants are made possible through a partnership with JPMorgan Chase.
“DHFF and LISC Detroit are committed to not only expanding affordable housing in the city, but also to ensuring that Detroiters and people of color have real opportunities in the development space,” said Camille Walker Banks, executive director of LISC Detroit. “DHFF's Developers of Color is an important tool that removes barriers to inclusion. The momentum that this initiative is creating in every corner of Detroit is truly remarkable.”
DHFF, a private investment fund aimed at directing capital to create new and preserving existing affordable housing in Detroit, is anchored by a $15 million commitment from JPMorgan Chase of it’s the fund’s total $58 million raise and a $10 million guarantee from The Kresge Foundation. DHFF is managed by LISC Fund Management, LLC, a subsidiary of Local Initiatives Support Corporation. LISC Detroit sources and originates loans for DHFF. DHFF is a part of the larger Affordable Housing Leverage Fund, which is an initiative with the City of Detroit’s Housing & Revitalization Department and the Michigan State Housing and Development Authority.
The renovation of 1403 Junction follows several recent announcements from the DHFF. To date, 11 DHFF projects with a total of 388 units have either been completed or are under construction, and several more are in the pipeline and will be announced soon.
“Projects like 1403 Junction are key as we preserve and improve the quality of affordable housing in neighborhoods like Southwest Detroit,” said Julie Schneider, director of the Housing & Revitalization Department. “Since 2018, the Detroit Housing & Revitalization Department has now renewed 7,700 apartments that were at risk of going market rate, and helped bring almost another 1,000 new affordable units online. The Detroit Housing for the Future Fund has been another key tool in that effort.” For more information about the DHFF and the Developers of Color programs, go to www.detroithousingforthefuturefund.org.
About LISC Detroit
LISC Detroit 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 1980, 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 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.
About the Detroit Housing for the Future Fund
DHFF is a mission-driven investment fund focused on creating and preserving affordable housing in Detroit. DHFF is managed by LISC Fund Management, LLC, a subsidiary of Local Initiatives Support Corporation. LISC Detroit sources and originates loans for DHFF. DHFF is a part of the larger Affordable Housing Leverage Fund, which is an initiative with the City of Detroit’s Housing & Revitalization Department and the Michigan State Housing and Development Authority. 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 existing affordable housing finance tools.
For more information on the Detroit Housing for the Future Fund and funding opportunities, please visit https://dhff.org/ or https://www.liscstrategicinvestments.org/detroit-housing-for-the-future-fund
For investor inquiries and more information about LISC Fund Management, LLC, please visit https://www.liscstrategicinvestments.org/fund-management
Disclaimer
References made to endorsements by any third-party to invest with LISC Detroit or DHFF are not indicative of future performance and does not imply any guaranteed level of service, skill, or training. Investors should not rely on endorsements for any purpose and should conduct their own review prior to investing. Bobby Lewis, and Julie Schneider, are not a “promoter” or investor in LISC Detroit or DHFF, but are a third-party who is not compensated for this statement.
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