Renovations completed on first of 3 vacant buildings on Hazelwood becoming 131 units of affordable housing
- The Weber is now leasing, adding 44 units of affordable housing with some rents priced for families earning as little as 50% AMI
- Two additional vacant apartment buildings across the street will add another 87 affordable units when completed.
- $15M total investment transforming block of Hazelwood Street from abandoned buildings into beautiful affordable housing in Piety Hill neighborhood
- All 3 projects being made possible by the Detroit Housing for the Future Fund
Detroit Mayor Mike Duggan, the Detroit Housing and Revitalization Department, Detroit City Council President Mary Sheffield, Local Initiatives Support Corporation’s Detroit office (LISC Detroit) and developers Hazelwood Partners LLC today cut the ribbon on the Weber, a newly renovated apartment building that adds 44 new affordable housing units to the city of Detroit.
The Weber is the first of three formerly vacant apartment buildings on the same block of Hazelwood to have renovation completed. In total, the $15 million investment into the three buildings will bring 131 new units of affordable housing to the Piety Hill neighborhood. Renovation of the buildings is being made possible by the Detroit Housing for the Future Fund (DHFF), which helps developers bridge financial gaps in their efforts to create and renovate quality affordable housing options in neighborhoods across the city.
The restoration of The Weber, located at 655 Hazelwood, includes full renovations to all units, as well as new electrical work, plumbing and HVAC systems; a new roof and improvements to the common areas.
All 44 units in The Weber will have rents below market rate, including 38 priced for households earning 80% or less of the area median income (AMI) and six units based on an income of 50% AMI. Rent for units at 50% AMI begin at $783 per month up to $1,007 per month. Remaining units at or below 80% AMI will begin at $795 per month up to $1,275 per month. The affordable rents on all of the apartments will be guaranteed for at least the next 13 years.
“The Detroit Housing for the Future Fund has become a powerful tool in our efforts to create affordable housing for Detroiters,” said Detroit Mayor Duggan. “By this time next year, all three of these beautiful buildings will have been preserved, with families moving into high quality affordable homes in a beautiful neighborhood.”
Hazelwood Partners LLC, comprised of Devon Caldwell & Ryan Zampardo from Inkwell Partners, David Conca from Vera Development, and Todd Rodgers from Essential Property Management, took on the Hazelwood project with LISC Detroit to bring more affordable housing to another community in Detroit.
$9.6M in DHFF loans key to project moving forward
Directly across the street from The Weber, the Hazelwood Partners team is also restoring two more historic buildings, the Lee Arden and Kingsley Arms. Once Lee Arden and Kingsley Arms renovations are complete in Spring 2024, almost an entire block will have been transformed from vacant, decaying structures to thriving, renovated and occupied buildings. The combined $15 million total development ($4.6 million for The Weber, $4.9 million for Kingsley Arms and $5.4 million for Lee Arden) was made possible by $9.6 million in loans from DHFF. The PACE Loan Group also made loans to each project totaling $3.1 million.
“We appreciate the City of Detroit, LISC Detroit and the Detroit Housing for the Future Fund for helping us transform this whole stretch of Hazelwood Street,” said Ryan Zampardo of Hazelwood Partners. “These buildings were architectural gems from the 1920s that were on the brink of being too far gone to save. Without support from the DHFF, restoring them at affordable rent levels would not be possible.”
The Detroit Housing for the Future Fund, a private investment fund aimed at directing capital to affordable housing in Detroit, 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. 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 led in partnership with the City of Detroit’s Housing & Revitalization Department and the Michigan State Housing Development Authority.
LISC is committed to creating and maintaining affordable housing in our city.” Said Camille Walker Banks, Executive Director of LISC Detroit. “The Detroit Housing for the Future Fund is fulfilling a critical need in the market. Many of these projects wouldn’t be happening without the support and vision of our funders, who recognized the difficulty in getting financing for projects like the Weber, and then stepped up in a big way to help us solve it.”
13 DHFF projects – with more to come
The renovations on Hazelwood follow on the heels of a number of recent announcements from the DHFF. To date, thirteen DHFF projects with a total of 435 units have either been completed or are under construction, and several more are in the pipeline and will be announced soon. The estimated total investment for these 13 DHFF project is $26,678,865 million
"The Detroit Housing for the Future Fund is a critical component in our toolkit to preserve and create affordable housing in neighborhoods across the city,” said Julie Schneider, director of the Housing & Revitalization Department. “I would like to thank LISC and the fund's corporate givers and congratulate Hazelwood Partners for supporting the housing needs of all Detroiters."
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, please visit https://www.detroithousingforthefuturefund.org/ or https://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
References made to endorsements by any third-party to invest with LISC Detroit or DHFF are not indicative of future performance and does not imply any guaranteed level of service, skill, or training. Investors should not rely on endorsements for any purpose and should conduct their own review prior to investing. Ryan Zampardo, Julie Schneider, and Mayor Mike Duggan are not a “promoter” or investor in LISC Detroit or DHFF, but is a third-party who is not compensated for this statement.