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State funding rescues affordable housing plans for city of Detroit

City of Detroit Facebook screenshot

Detroit officials are celebrating - again - the addition of 486 affordable housing units in the near future.

Detroit Mayor Mike Duggan says rapidly rising labor and materials costs for the developers had put those units in jeopardy.

"When the costs started to rise, they (the builders) weren't going to be able to afford to do the low income housing," said Duggan. "They were going to have to go to market rate housing and we would have had another very expensive project in the city."

Duggan thanked Governor Gretchen Whitmer and the Michigan State Housing Development Authority, which pitched in an additional $12.1 million dollars to keep the affordable housing in the plan.

He said the units will be in some of the most desirable neighborhoods in the city.

"We're building in Corktown. on the old stadium side, one of the hottest neighborhoods in the city. We're building in Hubbard Farms, one of the hottest neighborhoods in the city. We're building in Brush Park, one of the hottest neighborhoods in the city. What we believe is this: people of all incomes should be able to live in all neighborhoods."

The target for the affordable units is residents making 30% to 80% of the average median income (AMI) in Detroit. As of 2020, AMI for Detroiters was $20,961 for an individual, and $32,498 for a household.

Some of the most affordable units will rent for about $500 for a one-bedroom.

Tracy Samilton covers energy and transportation, including the auto industry and the business response to climate change for Michigan Radio. She began her career at Michigan Radio as an intern, where she was promptly “bitten by the radio bug,” and never recovered.
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