Affordable Housing Complex Going Up On Detroit River

[royce]

On a long vacant piece of land on the Detroit River, a new affordable housing complex is under construction. The development is just west of the UAW's Solidarity House. Information on who's developing the land can be found on the sign in front of the site.

[K-slice]

Oh god, lets hope not. Last thing we need is more taxpayer funded affordable housing in this town.

[Dan Wesson]

???
section 8 on the Straights of Detroit !!

Nooooo....

just how affordable

I'm in, where do I sign up.

[Richard]

Oh god, let’s hope not. Last thing we need is more taxpayer funded affordable housing in this town.

Zoom in on the map,the whole city is one big block of affordable houses.

https://detroitmi.gov/webapp/affordable-housing-map

That map is only showing regulated affordable housing,which is only a fraction and does not include the ones that received funds without restrictions.

1 billion spent in 5 years.

[royce]

Here's the info on the development.
It appears that the company will be using modular construction on this project.

[Jimaz]

[Zads07]

Glad to see vacant land be used for something important, actual housing and even better, affordable housing.

[K-slice]

Glad to see vacant land be used for something important, actual housing and even better, affordable housing.

Ask the employees at King Kole Foods what the Ruth Ellis Clairmount Center has brought to their area like I have... Nothing good that's for sure. Mixed income is the only way we should be building anymore. Projects don't work, we've already tried that.

Not to mention that Detroit is awash in move-in ready homes that can be bought for next to nothing already. We need good, new housing to bring in the middle and upper middle classes.

[royce]

Thanks, Jimaz.

[Richard]

The Detroit development at 7850 E. Jefferson will feature affordable units with various income limits, including seven units reserved for households with incomes at less than 50% of the area median income [[AMI) and 31 units [[six studio units and 25 one-bedroom units) reserved for households with incomes that do not exceed 60% of multifamily tax subsidy projects income limits. The Board approved a $4.8 million tax-exempt bond construction loan to aid in the construction process, a permanent mortgage loan amounting to $1.3 million, and a Mortgage Resource Funds [[MRF) loan of more than $180,000. The two four-story buildings, featuring 150 units in total, will be constructed with modular components.

GDC-East Jefferson will be built in three concurrent phases. Development amenities will include riverfront views, high-speed internet and WiFi, clubroom, resident lounge, business center, and a 24-hour fitness center.

Throw in a Target and you can sign me up,there's a boat dock next door.

But really you are only talking about 7 units that are really considered "low income" which is just under $1 million per unit to construct taxpayer wise.

Damn inflation,the cost to build affordable housing per unit has jumped from $650,000 per unit to over $900,000 per unit in a matter of months.

[Jimaz]

Thanks, Jimaz.

Don't mention it.

[Danny]

Better be affordable for ALL low income families.

[mwilbert]

Ask the employees at King Kole Foods what the Ruth Ellis Clairmount Center has brought to their area like I have... Nothing good that's for sure. Mixed income is the only way we should be building anymore. Projects don't work, we've already tried that.

Not to mention that Detroit is awash in move-in ready homes that can be bought for next to nothing already. We need good, new housing to bring in the middle and upper middle classes.

As far as I can see, 112 of the first 150 units are market rate. Haven't seen anything about the other 75 that appear to come in a second phase, but it's certainly mixed income.

[Richard]

Better be affordable for ALL low income families.

They tried that after demolishing Cabrini Green,it did not work out.

Where I am at ,it is income based but segregated and in the middle of the hood,so the teachers,police etc that would qualify would live,don’t,it was actually quite nice and safe until recently the city was sued because it was not fair for the police to arrest the ones that tried to start up street corner sales and not letting convicted felons on premises and ruin it for everybody else.

In this location though,as it is considered desirable it probably would be okay.

The part they have not disclosed is the time limits on having to retain the “affordable “ aspect,probably for a reason,fed funds it’s 3 years then you can switch to full market rate.

Those are the questions you guys need to be asking,you know full well in the future that is prime property and it is not going to be “affordable housing” with a view.

Its a big difference if you are spending $7 million plus to buy “affordable housing” for 3 years or for 10 years and if it is costing the taxpayers $1 million plus per year to “rent” those units as “affordable housing” that’s what it cost you $1.5 million per year to rent 7 units for 3 years.

It’s those little details that get you.

Thats how it works ,the feds got out of the projects building and running business,so what they do is farm it out to private investment.

They pay you up front to build the units but you have to keep a certain percentage “affordable “ used to be 20%,used to be for 2 years but now I believe it has been increased to 3 years,at the end of those 3 years the feds walk away and you can convert those units to full market rate.

So the Feds put up the money to build it,then after the 3 years it is yours in exchange for building it and providing that housing for that time period.

The city on its own has funded some “affordable housing” projects and they have been specific on the conditions that it remains as such in perpetuity.

So the city as an entity has been diligent but when the state and feds get involved it’s all bets are off.

You guys have spent over $1 billion in affordable housing projects.

To put it in perspective,NYC spent $2 billion but they have a population of almost 9 million.

So in a city that already has the most affordable housing in the country,what is the end game?

As the city grows,the city backed affordable housing that is required to remain in perpetual will still be there if the real estate values jump to the point where only high end can afford to live there,the time limited stuff will no longer be available.

So the city is trying to get ahead of a problem before it becomes unmanageable like it has in other cities.

But it is a catch 22 because money gets allocated that is outside of the cities control and if they do not get it,even if it is only solving short term non existent problems,that’s millions being placed on the taxpayers that is pretty much wasted.

So then when the time comes where you actually need the affordable housing,you are so taxed from the previous non needs that they cannot tax you even more for the current needs.

And that’s why city’s end up with 60,000 homeless,kudos to the city for trying to prevent that from happening but they are limited funds.

The system is set up where you make money off of the poor,so the more poor you have the more you need to help them,the more money you make.

[expatriate]

I would prefer that some money was spent rehabbing and repurposing some other older residential properties on Jefferson, like The Whittier and the eyesore next door. Can Detroit ever support high end apartment/condo living like New York and Chicago?

[K-slice]

As far as I can see, 112 of the first 150 units are market rate. Haven't seen anything about the other 75 that appear to come in a second phase, but it's certainly mixed income.

Do you have link where this is stated? What I read makes it sound like it's 100% "affordable".

[Richard]

MSHDA

https://www.michigan.gov/mshda/about...-detroit-flint

[Cincinnati_Kid]

As far as I can see, 112 of the first 150 units are market rate. Haven't seen anything about the other 75 that appear to come in a second phase, but it's certainly mixed income.

Just asking, but what do you consider to be market rate? Market rate near where I live, is still extremely high.

[mwilbert]

Just asking, but what do you consider to be market rate? Market rate near where I live, is still extremely high.

They haven't announced the rents yet. It looks like there are plenty of 2BR apts in that general area that can be had for well under $2000/mo. These will be new and presumably close to the river, so maybe the 2BRs there would be a bit over $2000/mo? When you have a new building, you never know how much of a premium the owner will think they ought to be able to get. But something in that range, I would think.

[Richard]

It explains it in the MSHDA link

7 units with incomes less then 50% AMI [[average median income) AMI in Detroit is $37,575.

“ 31 units [[six studio units and 25 one-bedroom units) reserved for households with incomes that do not exceed 60% of multifamily tax subsidy projects income limits.”

In Detroit 2024 1 person $40,320 - 2 $46,080 - it goes higher depending on how many in the family,but it is studios and 1 bedroom apartments in this first phase.

River Towers which is under the same program is $599 for a 1 bedroom,so you have to figure a studio comes in at roughly $300 per month.

So if you make $37,575 you can comfortably pay between $863 to $1100 a month in rent but they are offering the studio subsidized at $300.

Average studio in Detroit $544 to $959 a month.

So 50% of AMI figuring at $15k per year you can afford non subsidized $420 to $540 a month.

So if you make $15k a year it looks like you could save $100 per month in rent by moving in there subsidized.In a studio.

[Zacha341]

Hmmm. Should be true, but the ultra-high car insurance in Detroit nixes that!

So if you make $37,575 you can comfortably pay between $863 to $1100 a month in rent but they are offering the studio subsidized at $300.

[Henry Whalley]

https://youtu.be/h0kXax4qLgU

[Richard]

Hmmm. Should be true, but the ultra-high car insurance in Detroit nixes that!

Miami got you beat $3500 on average for full coverage and $1200 a month to rent a shed in the back yard.

I am 64 no tickets or accidents and if I were to get the basic insurance required to get a tag,that virtually covers nothing,but does include free towing is $2300 a year if I went that route.

And that’s on a 28 yo vehicle.

But it’s like anywhere else,according to zip code,I live in the hood.

I have a friend who is 26 - 2018 vehicle 2 accidents and 3 speeding tickets pays 1/2 of that.

They talk about redlining,profiling etc,nobody is allowed to do that but the insurance companies.

[Richard]

I keep repeating you make money off of the poor and not the rich,even more so with all of these free money programs,here is an example out of DC,sense you guys are knee deep in this stuff,you have to stay vigilant.

Listen to the words.

https://m.youtube.com/watch?v=tDNzk7...bG1lbWJlciA%3D