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City of Detroit receives six competitive awards to preserve 318 existing affordable housing units, build 218 more


City of Detroit receives six competitive awards to preserve 318 existing affordable housing units, build 218 more

  • MSHDA approves six Low Income Housing Tax Credit awards to support five affordable housing projects in Detroit, nearly half of the total for statewide awards
  • Tax credits will create housing for families and individuals with income ranging from less than 30% of AMI up to 80% AMI
  • Five projects total investment to be more than $100 million in the city

DETROIT, MICHIGAN – The Michigan State Housing Development Authority has awarded six competitive Low-Income Housing Tax Credit awards to five affordable housing developments in the City of Detroit, nearly half of the 14 total credits awarded in this round statewide. The limited number of 9% low income housing tax credits (LIHTC) will help create or preserve 536 units of affordable housing across the city, Mayor Mike Duggan and Gov. Gretchen Whitmer announced today.

Together, the five projects represent more than $100 million worth of housing investment in the city.

In total, 318 units of affordable housing that were set to expire soon will be extended for another 45 years. The new construction projects will create a total of 235 units, with 218 of them reserved as affordable units, meaning 92% of all new units supported by the credits will be affordable. Many of the new and preserved units will serve residents making between 30% and 80% of the area median income (AMI) or about $16,050 to $42,800 annually.

“If we’re going to make sure everyone in Michigan, no matter their community, has the opportunity to get ahead, we must get to work to ensure safe, affordable housing for everyone,” said Gov. Whitmer. “Because of this partnership with MSHDA and Mayor Duggan’s office, we are now one step closer to that goal. These projects will be critical in helping Detroiters and people all over the state move into affordable homes. It’s good for our families, for our economy, and for the future of our state.”

To accomplish this, the City’s Department of Housing & Revitalization worked with developers, which applied for and were awarded a series of 9% LIHTCs. The 9% LIHTC award is the most valuable and competitive affordable housing tool in the country, because it leverages up to 90% in equity to build affordable housing units. It also gives developers the ability to serve families and individuals who are at the lower end of the economic spectrum, including those who have experienced homelessness.  

“Detroit’s comeback depends on keeping every resident we have, and attracting new residents, no matter their income, to join them, so preservation and creation of affordable housing is critical to our growth,” said Mayor Mike Duggan. “We are grateful to the Governor and our partners at MSHDA for their support on these projects. Thanks to them, hundreds of Detroiters will be able to afford to stay in their homes and take part in the recovery they have waited so long to see.”

The five developments are spread across several Detroit neighborhoods, including Brush Park, Midtown, Milwaukee Junction and Gold Coast.

The selected projects are:

  • 7850 E. Jefferson Phase I and II – This project from developer Ginosko received two MSHDA awards totaling $1,778,730. All 150 units in this building will be designated as affordable housing for the next 45 years for the residents who occupy this complex. Incomes at this complex range from 60% of AMI to less than 30% AMI. The project has support from the Detroit Housing Commission in the form of project-based vouchers to support lower income units. Total Project Cost: $27.3M
  • Milwaukee Junction – This new construction development, led by a partnership between MHT + Detroit Catholic Pastoral Alliance, will add 25 units to the Milwaukee Junction neighborhood, and 20 units will be affordable at varying levels. Seven units will reserved at 40% AMI or $573 a month for a one bedroom, 6 units @ 60% AMI or $859 a month for a one bedroom, 7 units @ 80% AMI or $1,146 a month for a one bedroom, creating a true mixed income development in a fast-growing area of the city. The LIHTC award is $570,203. Total Project Cost: $7.2M 
  • Brush + Watson – 48 (80%) of the 60 units in this new mixed-income construction development will be reserved for residents earning between 30% AMI and 80% AMI. This project, which will be built on vacant city-owned parcels in the Brush Park neighborhood is among over 1,000 units planned for the area. The project is being led by American Community Developers. . The LIHTC award is $1,500,000. Total Project Cost: $19.1M
  • Cathedral Tower – One of the most recognizable buildings in Midtown, 236-unit Cathedral Tower has offered affordable rentals in one of the City’s most dense neighborhoods for years. Now, all 236 units will be renovated and preserved as affordable, with half reserved for residents making 40% AMI and the other half for 80% AMI. The project is being developed by a partnership between MRK Partners and Bedrock. The LIHTC award is $1,500,000. Total Project Cost: $27M
  • Orchestra Place Apartments – Also located in Midtown, this 82-unit senior affordable housing complex will be renovated and preserved as affordable, at 60% AMI, making sure long-time residents can stay in their homes for years to come. Larc Properties, Inc. will lead the project. The LIHTC award is $887,876. Total Project Cost: $21M

Collectively, these awards to the City of Detroit represent approximately 45% of the total available 9% LIHTCs statewide in this round of applications. Director of Housing & Revitalization Donald Rencher thanked MSHDA for recognizing the significance of each project and putting its most valuable resources where they are most needed.

“As the city’s revitalization continues, we are focused on not only developing high-quality affordable projects that fit in with the existing culture of the neighborhoods, but also preserving every affordable unit we have, so that we can retain the residents who have stayed,” said Donald Rencher, director of Housing and Revitalization for the City of Detroit. “Our partners at the state level have put their trust in Detroit with these awards and we can’t wait to get to work.”

About the LIHTC Program

The low-income housing tax credit (LIHTC) program is one of the federal government’s primary policy tools for encouraging the development and preservation of affordable rental housing. These federal tax credits are awarded to Developers of affordable housing via a competitive application process administered by the Michigan State Housing Development Authority (MSHDA) on a biannual basis. Once awarded, developers typically sell these tax credits to outside investors in exchange for equity to develop affordable housing.


2019 Wayne County Area Median Income and Rent Limits for One Person


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60% AMI

80% AMI







Rent for 1 Bedroom