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News from the City Government

07

City to Expand Strategic Neighborhood Fund, Raise $130 Million for Seven Additional Neighborhoods

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  • Strategic Neighborhood Fund 2.0 follows $42 million investment in three neighborhood areas, will bring significant investment to seven more areas
  • The Kresge Foundation makes new $15 million commitment to SNF 2.0
  • Total coordinated neighborhood investment could reach over $1 billion

Following successful and ongoing investment of $42 million in three Detroit neighborhood areas, the city and partners are expanding the Strategic Neighborhood Fund (SNF) to seven more neighborhood areas. In partnership with Invest Detroit, the fund will raise $130 million to build ten vibrant, inclusive areas throughout the city, touching more than 60 individual neighborhoods over the next five years. The Strategic Neighborhood Fund 2.0 will also expand its scope to include streetscapes, park improvements, commercial development and housing stabilization.


Clark Park rendering

The Kresge Foundation, whose Detroit efforts focus on the revitalization of neighborhoods across the city, kicked off fundraising efforts led by the City and Invest Detroit, committing $15 million to SNF 2.0.

While SNF 2.0 investments will foster more vibrant and growing neighborhoods, the city will also raise $250 million for the Affordable Housing Leveraging Fund to ensure these growing neighborhoods remain inclusive and affordable for both long-time residents and new residents. The city has already committed $50 million to the fund, which will preserve 10,000 existing affordable housing units and create 2,000 more over the next five years. The comprehensive strategy comes from Mayor Mike Duggan’s pledge to build “One Detroit. For All of Us.”

With $42 million from SNF 1.0, $130 million from SNF 2.0 and $250 million from the Affordable Housing Leveraging Fund, projected investment in the neighborhoods will reach $422 million over the next five years. That investment is expected to leverage over $600 million in private investments, pushing total neighborhood investment over $1 billion.


Kercheval rendering

SNF 2.0 will cover seven additional neighborhood areas in the city, including: Grand River Northwest, Warrendale/Cody-Rouge, Russell Woods/Nardin Park, Campau/Banglatown, Gratiot/7-Mile, East Warren/Cadieux, and Jefferson Chalmers.

Learning from the $42 million pilot effort in three Detroit neighborhoods, Islandview/Greater Villages, Vernor/Southwest, and Livernois-McNichols, SNF 2.0 will continue a path of inclusive growth across the city to create beautiful, walkable, and vibrant neighborhoods for all Detroiters.

“In the first three neighborhoods, we went in and worked with the residents to support development and we saw incredible results,” said Mayor Mike Duggan. “We’ve got new mixed-use apartment buildings with affordable housing, we have more businesses and more parks opening up. We applied the tools that drove the development in downtown and midtown and put them into neighborhoods, and now we’re expanding that to seven more areas across the city."


City and partners kick off fundraising with a huge commitment

The City and Invest Detroit will raise $56 million in corporate and philanthropic support, match those funds with local resources and secure state and federal dollars to reach the $130 million investment goal. The Kresge Foundation is the first to make a commitment to the fund, pledging $15 million at a meeting of top local and national philanthropic organizations late last month.


McNichols

“Kresge is proud to join with the city administration in this ambitious step toward the deep and systematic revitalization of neighborhoods,” said Kresge President Rip Rapson. “It is an effort that is as complicated as it is important. It will require all segments of our community – residents, businesses, community- and faith-based organizations, public agencies, and foundations – to work hand-in-glove. For Kresge, that means that we will seek to layer multiple forms of investments – from community-based projects across the city to operating support for community nonprofits to the concentrated housing, economic development, and open space investments intended to catalyze the renewal of neighborhoods like Livernois-McNichols.

“And now, much as the Grand Bargain united a coalition of city advocates to reset the municipal machinery, the Strategic Neighborhood Fund heralds a turning point for neighborhoods. Now is the time to show we mean it when we say neighborhoods are the heart and soul of the city.”


Expanding into seven more neighborhoods in partnership with the community

The success of SNF 1.0 was due in part to the extensive community engagement around the projects. In the Livernois-McNichols area, officials from the city’s Planning and Development Department met with residents over 50 times in a year before announcing the Fitzgerald Revitalization Project. Today in Fitzgerald, a new central park is set to open this summer, blighted homes have been demolished and over 100 vacant homes will be renovated and occupied, creating a blight free neighborhood.

This approach will be replicated in the expanded areas, led by the Planning Department. Following a year-long community engagement process, plans are underway in the Grand River Northwest area. The community engagement process is just kicking off in Jefferson Chalmers, Russell Woods/Nardin Park, Campau/Banglatown and Warrendale/Cody-Rouge. Planning for Gratiot/7-Mile and East Warren/Cadieux will kick off in early 2019.

“We are going to work closely with the community in every neighborhood to encourage and empower the residents to stay and be a part of this city’s comeback,” said Maurice Cox, director of Planning and Development. “The people of Detroit who have stayed through the good times and the bad must be at the forefront of this effort. We want to make sure that Detroit’s recovery includes them, because they are Detroit’s future.”

The standard planning process will engage hundreds of residents in each area in dozens of meetings over a year-long period. In Grand River Northwest for example, city planners met with over 400 residents during 26 public meetings to develop the framework plan for that neighborhood. The scope of work includes building on past planning and implementation work of local neighborhood organizations and to build on to that with a cohesive vision of the community.


SNF 2.0: A comprehensive investment strategy

SNF 2.0 will also expand the scope of investments, covering parks, streetscape improvements, commercial corridors and single family housing. This comprehensive investment strategy will build up neighborhoods by investing in assets that are crucial to growing neighborhoods. The categories of investment will work hand in hand to build upon the existing strengths of neighborhoods, aligning all resources available to drive a significant and holistic neighborhood revitalization in each area.

Of the $130 million, SNF 2.0 will raise:

  • $49 million will be invested in streetscape improvements to create walkable, beautiful streets that are attractive to businesses and pedestrians alike.
  • $50 million will be invested in commercial corridor improvements through gap real estate financing to support commercial, mixed-use and multifamily development along each corridor.
  • $21 million will be invested in parks, creating catalytic neighborhood parks and improving existing ones by aligning design excellence, community needs and elevating pedestrian experiences.
  • $7 million will be invested in single-family home stabilization by assessing existing vacant structures and lots and taking a targeted approach at home rehabilitation to increase density in these neighborhoods.
  • $3 million will be invested in the neighborhood planning efforts to work with the community and coordinate these efforts.

Coordinating neighborhood redevelopment with affordable housing

While SNF 2.0 will work to build vibrant and growing neighborhoods across the city, the city’s Affordable Housing Leveraging Fund will invest in preserving 10,000 affordable units and creating 2,000 more. The city will work to ensure residents can find quality, affordable wherever there is growth, making sure neighborhood redevelopment is inclusive and includes space for people of all incomes and backgrounds.


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The investment in these neighborhoods will be for all Detroiters. By creating affordable housing and utilizing the City of Detroit's Affordable Multifamily Housing Strategy and Affordable Housing Leverage Fund (AHLF) to support deeper affordability in neighborhoods, the city can encourage density growth and create one Detroit for everyone.

“We are not going to grow as a city unless we do everything in our power to keep the residents we have and attract new residents to join the communities that current residents have built,” said Arthur Jemison, director of Housing and Revitalization. “Preserving and creating affordable housing as we invest in these areas is the right thing to do. There’s enough room for everyone in Detroit, no matter their income or background.”

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