Preservation Pre-Development Program

The City of Detroit, with Enterprise Community Partners, offers predevelopment services to support the preservation of regulated and naturally-occurring affordable housing. Developers of affordable multifamily housing with recapitalization and preservation needs can access energy assessment, capital needs assessment, phase 1 environmental site assessment, and financial modelling services.

Preservation Pre-development Partnership Services:

Energy Assessment
To understand the amount of energy used at the building and ways that the energy use can be more efficient
No Cost. (Value: $4,000-5,000)
Capital Needs Assessment (CNA)
To identify the components of the property that need to be repaired over time and to estimate the costs of property repair.
No Cost. (Value: $2,500-5,000)
Phase 1 Environmental Site Assessment
To document prior usage of the property and to determine if additional environmental investigation is needed or required.
No Cost. (Value: $3,500-4,000)
Financial Modeling
Working with a development consultant to identify potential funding sources, meet with funders, and prepare funding applications.
Cost: Covers up to $7,500; anything above $7,500 would be covered by you.

Project Requirements:

Project must be an occupied rehabilitation project
Vacant rehab is allowed if property is already regulated and affordable (at the City of Detroit’s discretion)
Project must have 5 or more units
Participant must have the building under site control
Preservation Pre-Development Program conversations may begin before hand
Participant must sign an agreement with Enterprise and the City of Detroit acknowledging their willingness to adhere to City of Detroit’s affordability requirements (Tenant Retention Plan), and to share information with Enterprise and the City as needed.
For more information, reach out to the Preservation Team at [email protected].

Scatter-Site Homeownership Program

In the City of Detroit, more than 1,500 units of single-family homes were developed through the LIHTC program with the intention of delivering housing ownership opportunities for low income residents through a Lease Purchase program.
Many of Detroit’s LIHTC Lease Purchase homes nearing their 15-year lease cycle are controlled by nonprofits owners who lack the capacity and experience to transition residents from renting to owning. Many are struggling to balance financial/capital needs of their portfolios with the ability to sell homes to families at an affordable price.
As such, the City of Detroit, with CHN Housing Partners, offers support for transitioning eligible scatter-site LIHTC properties to homeownership opportunities for current tenants.
For more information, reach out to the Preservation Team at [email protected].

Additional Preservation Funding Resources

Additional federal, state, and local gap financing may be available to aid financing gaps. For more information, reach out to the Preservation Team at [email protected].