Detroit Housing for the Future Fund helps preserve another 22 units of affordable housing near Boston Edison
- LISC Detroit and developers Anderton and Noel announce preservation of apartment building, featuring 22 apartments as low as 50% AMI.
- Project is among 11 funded by Detroit Housing for the Future Fund (DHFF) since fund’s inception in fall 2020.
Local Initiatives Support Corporation’s Detroit office (LISC Detroit) and developers Tom Anderton and Adam Noel announced today that renovations have been completed on The Shirley in Detroit’s Gateway neighborhood, preserving another 22 units of affordable housing in the city thanks to the Detroit Housing for the Future Fund (DHFF).
The Detroit Housing for the Future Fund, a private investment fund aimed at directing capital to affordable housing in Detroit, is managed by LISC Fund Management LLC, a subsidiary of Local Initiatives Support Corporation. LISC Detroit sources and originates loans for DHFF. DHFF is part of the larger Affordable Housing Leverage Fund, which is an initiative led in partnership with the City of Detroit’s Housing & Revitalization Department.
The Shirley, located at 1442 Calvert, was built in 1924 and was acquired by Anderton and Noel in October 2019. At the time of purchase, the building was vacant and suffering from severe neglect. Prior to seeking funding from DHFF, Anderton and Noel invested more than $1.2 million into the property and got it to 100% occupancy along with acquiring the adjacent parcels. The developers then approached LISC Detroit about the DHFF for financing to make additional repairs to the building, including upgrading the HVAC system, and to refinance an existing loan at a lower interest rate to maintain affordability. A $1.78 million loan to The Shirley Detroit LLC was approved and closed in December, covering costs for the completion of the rehab. Refinancing with DHFF allowed the developers to lock in the long-term affordability of the units for at least the next 13 years. In addition, the new HVAC system will mean significant savings for tenants on utility bills.
The 16,649 square-foot building now includes a mix of studios, one-bedroom and two-bedroom units. The property also has gated onsite parking in a paved lot with 22 spaces. Affordability will range between 50%-80% of area median income (AMI), which translates to $783 to $1,612 a month.
Over the past six-plus years, developers Anderton and Noel have invested in the neighborhoods around Boston-Edison. Their efforts have thus far resulted in some 150 units of housing, mostly in multi-family buildings, but also homes and duplexes – almost all of which are affordable below AMI rates and income requirements. Their work also includes another DHFF-backed project, The Charlotte, a previously abandoned apartment building that opened in October with 28 affordable units at 60% to 80% AMI – though Anderton and Noel are currently charging rents at The Charlotte that are below that, at 55% to 65% AMI.
“We have continued investing and reinvesting in this area of Detroit in the hopes of solidifying an affordable and safe neighborhood for the working class,” Noel said. “We are often someone’s first apartment after college, or when they move into the city. Our team takes pride in its ability to offer these beautiful old buildings to our tenants who then have access to the area around Boston-Edison at affordable prices.”
The DHFF 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
“The DHFF is proving to be an incredible tool in both the creation and preservation of affordable housing," said Camille Walker Banks, executive director of LISC Detroit. “We are able to ensure that affordable housing is being added in Detroit, even at a time of economic uncertainty, inflation and higher construction costs. These factors cannot deter us from ensuring that everyone should be able to live in and afford quality housing.”
Added Detroit Mayor Mike Duggan, “Ensuring that Detroiters have access to housing that is quality, safe and affordable is one of the City’s top priorities. I would like to thank LISC and the fund’s corporate givers for helping us work toward a better and more equitable city for all Detroiters.”
11 DHFF projects – with more to come
The renovation of The Shirley follows on the heels of a number of recent announcements from the DHFF. To date, 11 DHFF projects with a total of 388 units – 364 of which are below 80% AMI – have either been completed or are under construction, with more in the pipeline and to be announced soon.
“The Detroit Housing for the Future Fund is a key tool in our efforts to create more affordable housing in neighborhoods across our city,” said Julie Schneider, director of the Housing & Revitalization Department. “Turning vacant buildings like The Shirley into quality and affordable housing is not only making Detroit a more equitable place for all, but also revitalizing our neighborhoods by turning blight into beauty.”
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, visit www.detroithousingforthefuturefund.org or 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