Local Initiatives Support Corporation’s Detroit office (LISC Detroit) and developer Hazelwood Partners LLC announced that renovation has begun on two historic buildings in Detroit’s Piety Hill neighborhood that will bring 87 units of new affordable housing to the city. The two neighboring buildings on Hazelwood Street are the latest projects to tap the Detroit Housing for the Future Fund (DHFF), which helps developers bridge financial gaps in their efforts to create and renovate quality affordable housing options in neighborhoods across the city.
The historic Kingsley Arms Apartments, at 646 Hazelwood, and the Lee Arden Apartments, at 660 Hazelwood, are being renovated by developer Hazelwood Partners, which includes Ryan Zampardo and Devon Caldwell of Detroit-based Inkwell Partners; David Conca of Vera Development; and Todd Rodgers of Essential Property Management. All 87 units in the buildings, which have been vacant for more than a decade, will be affordable housing, some as low as 45 percent area median income (AMI).
The combined $10.3 million total development ($4.9 million for Kingsley Arms and $5.42 million for Lee Arden) was made possible by $6.69 million in loans from DHFF. The PACE Loan Group also made loans to each project totaling $2.1 million. The restoration will include full renovations to the 87 units, in addition to installing new electric, plumbing and HVAC systems; replacement of windows and roofs; improvements to the common areas; and other work. In addition, the affordability on all the apartments will be guaranteed for at least the next 13 years.
The buildings will feature nine apartments at or below 45 percent AMI, nine at or below 55 percent AMI, and the remainder at or below 80 percent AMI. The units are targeted at Detroiters making between $31,350 and $50,160. Rents start at about $805 and average less than $1,000. The buildings offer three studios, 63 one-bedroom apartments, and 21 two-bedroom apartments between them.
“The Detroit Housing for the Future Fund is proving to be a powerful tool in our efforts to create affordable housing for Detroiters,” said Detroit Mayor Mike Duggan. “In the case of this developer, almost an entire block will be completely renovated, and ready for new people to move in and enjoy a high quality yet affordable home in a beautiful neighborhood. It also gets us that much closer to fulfilling our goal of creating or preserving 15,000 units of affordable housing to ensure that Detroiters of all income levels can live in any neighborhood they wish.”
Hazelwood Partners is also nearing completion on the Weber Apartments, at 655 Hazelwood, directly across the street from Lee Arden and Kingsley Arms. Forty-four newly renovated units at the Weber will start leasing in the spring. Once Lee Arden and Kingsley Arms renovations are complete in late 2023, almost an entire block will have been transformed from vacant, decaying structures to thriving, renovated and occupied buildings.
“We appreciate the City of Detroit, LISC Detroit and the Detroit Housing for the Future Fund for helping us transform these beautiful, historic buildings” said Ryan Zampardo of Hazelwood Partners. “It is extremely important to us as developers to make sure our apartments are attainable for all Detroiters. Without the DHFF, achieving these affordability levels would not be possible.”
The Detroit Housing for the Future Fund, a private investment fund aimed at directing capital to affordable housing in Detroit, is anchored by a $15 million commitment from JPMorgan Chase of its 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.
Creating and maintaining affordable housing is one of our key missions,” said Camille Walker Banks, executive director of LISC Detroit. “The Detroit Housing for the Future Fund is a valuable resource particularly during a time of rising housing costs and inflation, as well as stagnating or shrinking incomes. Everyone should be able to afford and live in quality housing.”
The buildings are in Detroit’s Piety Hill neighborhood, just north of Detroit’s New Center area.
The two buildings — along with The Weber at 655 Hazelwood, which is nearing completion — mean almost an entire block of vacant structures will be reborn as over 130 new units of quality, affordable housing in a desirable Detroit location thanks to the DHFF.
10 DHFF projects – with more to come
The renovations on Hazelwood follow on the heels of a number of recent announcements from the DHFF. To date, ten DHFF projects with a total of 378 units have either been completed or are under construction, and several more are in the pipeline and will be announced soon.
“Ensuring that Detroiters have access to housing that is quality, safe and affordable is one of our department’s biggest goals,” said Julie Schneider, director of the Housing & Revitalization Department. “The Detroit Housing for the Future Fund is a key tool in tackling inequality and housing instability in our city. I would like to thank LISC and the fund’s corporate givers for helping us work toward a better Detroit for all Detroiters.”
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 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://www.detroithousingforthefuturefund.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
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