Detroit Plans New Fund to Preserve and Develop Affordable Housing Units

The city of Detroit has announced plans to create a $250 million affordable housing fund that would preserve 10,000 Housing Credit units with expiring affordability requirements and create 2,000 additional affordable units by 2023. It will be funded by $50 million in grant money, $150 million in low-interest borrowing and another $50 million in city and federal funds over the next five years. Apartment rents have been rising in Detroit over the last several years while the median household income remains low. At the same time, federal funding for affordable housing programs in Detroit dropped by 45 percent to $41 million between 2002 and 2016, contributing to the estimated $800 million shortfall in what is needed to support affordable housing in the city. Advocates are concerned that current residents will be displaced from the city if existing affordable homes are not preserved and new affordable homes are not developed.

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