We don’t often do that at CDC. The complexity causes eyes to roll back in their head, or just say “I don’t understand how affordable housing works.” Yes, it can be intricate and challenging, but it also meets a huge need for many residents in the city. Despite that, here’s what we have been working on for a few years now.
First, we acquired 18 units of housing from the Detroit Land Bank Authority last January. Presently for Phase I we are rehabbing 4 units of housing– all for sale. Next, in Phase 2, we will rehabilitate 10 units as rentals. The funding will come from the State’s Missing Middle Fund and a 3% loan. This loan is provided by the Detroit Housing for the Future Fund. Those houses need to be complete by the end of 2024. Finally, for Phase 3, we will rehab the remaining 4 units–2 rental and 2 for sale. CDC construction is busy!
Second, we finally closed on 75 units of housing that were built in 2006. These houses are slightly outside our target area, but we acquired them to preserve affordable housing and prevent their conversion to market-rate units. We will sell some of the homes to qualified tenants.We got these homes for a killer price, but it did take over 3 years to see the deal come to fruition. What a relief!
Third, we are building 32 new homes as yet another form of providing affordable housing for those in need. We will build these duplexes on two blocks: Gladstone and Blaine streets in 48202. The financing involved a complex capital stack, but we are on track to close in the first quarter of 2024. With fingers crossed and prayers up, we aim to break ground by April!
Fourth, we received a donated 40-unit apartment building (isn’t God good?) and committed to developing permanent supportive housing for the chronically homeless. This is our way of contributing to the fight against homelessness in Detroit. We will not only provide housing, but also supportive services to deal with mental health, substance abuse issues, trauma, and more. This is new territory for us but a challenge we look forward to addressing. Rehab to commence in 2nd quarter of 2024.
Fifth, TRUST Neighborhoods, a national organization dedicated to creating affordable housing, selected us to join their program.Their focus is on neighborhoods at risk of gentrification, like ours. There are Trust Neighborhoods in Boston, Denver, Kansas CIty, and Tulsa already and we are honored to be selected to join the others. Their goal is to help us increase our capacity to do even more by providing financial and other types of support and to have community accountability while doing it. Our year one goal is to acquire 100 units of housing. We have been busy looking at a lot of real estate and dreaming for our community.
We realize that this is not a warm fuzzy story, but those sweet babies, children, teens and families we work with, and are neighbors with all have to live somewhere. Unfortunately, many live in deplorable conditions while paying unaffordable rents. In Detroit, 56% of residents spend 50% or more of their income on housing. Only 10% of rental properties in Detroit are registered and meet the City’s compliance requirements, leaving tenants vulnerable. Yes, we are part of that 10%).
Jesus came to proclaim the good news to the poor, to set captives free and to liberate those who are oppressed. and we are called to do the same. What a great way to serve the poor than by providing clean, lead-free, and energy-efficient housing. This helps release them from oppressive living conditions and improves their quality of life. That’s why we use up a lot of our brain cells developing real estate — so we fulfill that mission of affordable housing. Besides there is such a great need.