• City issues request for proposals from potential development partners to build at least 20 new homes on vacant lots in North Corktown 
• City also makes $2.5 million available through Small Buildings Program to close funding gaps for developments of 2-7 units 

The City of Detroit is expanding opportunities for developers to rehabilitate and build housing across the city, announcing two new initiatives that will support new homes, neighborhood investment and expanded pathways to homeownership and housing affordability.

The City’s Housing & Revitalization Department (HRD) is seeking development proposals for 16 City-owned parcels in North Corktown, with the goal of creating at least 20 new homes, available for rent or purchase. At the same time, the City announced the 2026 Small Buildings Program Notice of Funding Availability (NOFA), making up to $2.5 million available to support the rehabilitation or new construction of small residential buildings containing two to seven units.  

Together, the two initiatives represent the beginnings of a citywide approach to expanding housing development: bringing vacant properties back into use, building new homes and expanding opportunities for legacy Detroiters to live in this historic neighborhood.  

The opportunities advance Mayor Mary Sheffield’s Rise Higher Community Framework, which identifies thriving neighborhoods, including access to affordable, high-quality housing, preservation and revitalization of neighborhood housing assets, and continued investment in Detroit communities, as foundational to the city’s future.  

New Infill Homeownership Opportunities Coming to North Corktown

The City is inviting developers to submit proposals through its Reactivating North Corktown: Infill Development Opportunities for Developers Request for Proposals (RFP).

The opportunity makes 16 City-owned vacant parcels totaling approximately 1.5 acres available for redevelopment along 16th Street between Martin Luther King Jr. Boulevard and Temple Street.

The City is seeking a developer to deliver at least 20 new homeownership units on the assembled sites. Proposals may include entirely market-rate housing or mixed-income offerings. Any mixed-income proposals that include affordability up to 80% AMI are eligible to apply for up to $1.4 million in Community Development Block Grant-Disaster Recovery funding for costs tied to affordable homes.  

The North Corktown opportunity is located near Michigan Central and the broader Michigan Central innovation district, where significant public and private investment is supporting new jobs, businesses, public spaces and economic activity. 

North Corktown contains 1,246 total parcels, of which 378 (approximately 30%) are publicly owned, and has an estimated 70% land vacancy rate. Federal data indicates an average household size of approximately 2.3 persons per household.  

Recent sales data indicates newly constructed townhomes are in high demand, and sold units have either two or three bedrooms. Across recent sales, the average sales price was $365,000, with average price per square foot at $261 per square foot. The average size of units sold over the evaluated reporting period was approximately 1,381 square feet.  

The RFP also advances the goals of the Greater Corktown Transformation Plan and the federally supported Choice Neighborhoods initiative. Historic Corktown and North Corktown received a $35 million Choice Neighborhoods Implementation Grant supporting investments in housing, greenspace, infrastructure, sustainability and transportation. The North Corktown parcels are part of the housing strategy for that initiative.

The selected development team will be responsible for costs associated with environmental cleanup and abatement, right-of-way improvements, impacted sidewalks and roadways, utility connections and any necessary rezoning. The city’s Housing & Revitalization Department has financed preliminary environmental assessments for the parcels to reduce predevelopment costs for developers.  The City also is also debuting a new Request for Proposals structure that provides critical information to developers about environmental assessment results, plus infrastructure and utility status so developers can make informed decisions about their projects and financing plan. 

$2.5 Million Available for Small-Scale Housing Development

Through the Small Buildings Program, HRD is making up to $2.5 million available to for-profit and nonprofit housing developers to address financing gaps for eligible residential projects.

The program is designed specifically for smaller housing developments that are not seeking Low-Income Housing Tax Credit (LIHTC) financing and will support:

• Rehabilitation of vacant structures containing between 2 to 7 residential units; 
• New construction of buildings containing 2 to 7 residential units, subject to program location requirements; 
• Single-building and qualifying scattered-site developments 
• Homes offered for sale or rent that meet the program’s affordability requirements. 

The program uses federal funding, including Community Development Block Grant resources associated with HUD’s Pathways to Remove Obstacles to Housing (PRO Housing) initiative, to provide gap financing that can leverage private capital and other sources.

“Detroit needs housing at every scale, from rehabilitating a small vacant building and bringing those homes back into use, to creating new homeownership opportunities on larger parcels of land,” said Housing and Revitalization Director Julie Schneider. “These investments give developers the tools and opportunities to help us expand housing choices while strengthening neighborhoods and creating pathways for more Detroiters to live, rent and own in the communities they call home.”  

Housing supported through the Small Buildings Program must serve low- to moderate-Income households earning no more than 80% of Area Median Income (AMI), as established by the U.S. Department of Housing and Urban Development.

Depending on the size and type of development, a portion of the units must be affordable to income-qualified households. Affordable units must generally be rented or sold at amounts that represent no more than 30% of the household’s income, including applicable utility costs.

Assistance is structured as a 0% interest loan that may be forgiven once all program requirements are satisfied.

The Small Buildings Program is intended to complement other City efforts to increase housing supply, preserve and reactivate vacant properties, and create more housing choices throughout Detroit.

How Developers Can Participate

The Small Buildings Program NOFA can be found here while the North Corktown RFP has been published and can be found here.

For the Small Buildings Program, Developers must first complete a pre-application through the City’s Neighborly software. Applicants with complete pre-applications will be contacted to schedule a Project Readiness Assessment Meeting with City staff before proceeding through the full application process.

The City is seeking a developer capable of obtaining and structuring financing, delivering quality for-sale housing and beginning construction before September 30, 2028, consistent with the requirements of the Choice Neighborhoods initiative.

Across both opportunities, the City is seeking development that contributes to strong, connected and thriving neighborhoods. The City also encourages strong Detroit-based development teams, partnerships with local firms and community organizations, participation by minority- and women-owned businesses, and local hiring strategies.