Mayor Duggan, Develop Detroit open $18.2M project in city’s North End representing 71 units of affordable housing
Mayor Mike Duggan joined nonprofit developers Develop Detroit and Vanguard Community Development Corporation today to officially open the $18.2 million Marwood + Marston project in the city’s North End, adding and preserving 71 housing units, all of which are reserved as affordable housing, including 37 that will be rented to Detroiters earning no more than 50 percent area median income (AMI). In addition to increasing affordability in North End, the three-building development also boosts vibrancy in the growing neighborhood by developing previously vacant land.
Marwood + Marston, located at 53-111 Marston St., includes the renovation of the 59-unit Marwood Apartments, a historic 1925-built building just east of Woodward that is on the National Register of Historic Places. It includes fully renovated studios and one- and two-bedroom apartments.
In addition, residents of the building now have their affordability guaranteed; the building previously was not a regulated property and was subject to market-rate price hikes. Eleven residents stayed at Marwood through the renovation and are now in fully renovated apartments at no more than 30 percent of their income. All existing residents in the Marwood were given priority for the newly renovated units, subject to income and programmatic restrictions associated with the new housing subsidies.
The development also includes six newly built, two-bedroom townhomes with attached garages, as well as a new-construction, six-unit building featuring two-bedroom apartments and a community room for residents of the entire development. The new buildings replaced previously vacant land, so it adds not only affordable housing to the North End but also density.
The properties are now leasing at a range of affordable incomes, ranging from 30 percent to 80 percent AMI. This equates to $19,200 to $51,200 annually for a family of two.
“What Sonya Mays and Develop Detroit have done here is just incredible,” Mayor Duggan said. “They have transformed an entire block of Marston Street with 71 units of brand new and preserved older housing units that are now beautiful homes for 71 families of lower-income levels. This is the type of city we are building, where people of all income levels can afford to live in any neighborhood they wish.”
The AMI breakdown is as follows, with Develop Detroit charging below the maximum rent allowed on most units:
- Seventeen units at 30 percent AMI with project-based vouchers (PBVs) through the Detroit Housing Commission (DHC), which means those residents will not pay more than 30 percent of their household’s income, and the vouchers will make up the difference.
- Eight units at 50 percent AMI with PBVs via DHC, with residents not paying more than 30 percent of their household’s income, and the vouchers making up the difference.
- Twelve units at 50 percent AMI. Rents will be $620 a month for a studio, $675 for a one-bedroom, and $806 for a two-bedroom.
- Thirty-four units at 80 percent AMI. Rents will be $620 a month for a studio, $1,000 for a one-bedroom, and $1,319 to $1,343 for a two-bedroom.
“This project will serve as an excellent example of how inclusive development can be done,” said Develop Detroit CEO Sonya Mays. “We are proud to help build a community and work with the existing neighborhood to expand opportunities for its residents to succeed.”
The City of Detroit’s Housing & Revitalization Department supported the project by allocating $2.46 million for the project – $726,000 in HOME, $1.23 million in Community Development Block Grants (CDBG) funds and $505,000 in CDBG-CV (CARES Act) – as well as a Payment In Lieu of Taxes (PILOT) program.
“This development is not only bringing quality affordable housing to Detroit’s North End, but helping to revitalize the neighborhood in an equitable way,” said Julie Schneider, director of the City’s Housing & Revitalization Department. “We thank our partners at Develop Detroit and the Detroit Housing Commission for helping create more high-quality affordable housing in the North End.”
The project also received $6.5 million in Low-Income Housing Tax Credits (LIHTC) and historic tax credit funding from Huntington Bank; $2.95 million in Michigan State Housing Development Authority (MSHDA) Housing Trust Fund dollars; a $5 million permanent loan from MSHDA; and a $500,000 Federal Home Loan Bank of Indianapolis (FHLB) Affordable Housing Program grant through Lake Trust Credit Union.
“At Huntington, we believe it is our responsibility to support efforts that provide individuals and families with access to stable housing so we can build strong communities,” said LaTrice McClendon, Detroit community president at Huntington National Bank. “With Huntington’s investment in this development, we are proud to help the city of Detroit and Develop Detroit to bring the Marwood + Marston development to the city’s North End.”
“As a staunch advocate for real affordable housing in Detroit, I am pleased that developers like Develop Detroit are creating avenues to address the housing crisis in Detroit by developing quality affordable units,” said Council President Mary Sheffield, who represents District 5 where Marwood + Marston is located. “My hope is that this type of conscious development, which preserves Detroit’s historic buildings and structures and redevelops neighborhoods, continues to be an example for future projects in the city.”
Develop Detroit has preserved affordable rental homes for over 300 Detroit families in the North End, Woodbridge and Martin Park neighborhoods, and, since 2018, it has created dozens of homeownership opportunities in the blocks surrounding the Marwood + Marston development. Vanguard CDC, who has worked in the North End since 1994, was co-developer with Develop Detroit. Vanguard CDC was founded in 1994 by Bishop Edgar Vann and Second Ebenezer Church. Vanguard’s mission in Detroit’s Historic North End is to cultivate a vibrant and healthy community where people live, work and play.
Those interested in living at Marwood + Marston can contact Marwood Apartments @kmgprestige.com or call (313) 888-9522 for more information. Those seeking to live in one of the project-based voucher units can go to the Detroit Housing Commission’s website at www.dhcmi.org/project-based-voucher-program to sign up.
For more information on how to apply to The Freelon at Sugar Hill, residents can visit the City’s affordable housing website, Detroit Home Connect. The property listing can be found at https://tinyurl.com/sugarhilldetroit.
Residents can also get more information on the City’s affordable housing website, Detroit Home Connect, at https://homeconnect.detroitmi.gov/listing/5706f837-47e6-4bf7-8a1e-95c52d87dd37/marwood_apts_53_marston_st_detroit_mi.