Vacant duplexes in Osborn Neighborhood to be renovated for affordable homebuying, rental housing

Community partners join Osborn Neighborhood Alliance to kick off renovation of three long-vacant duplexes in District 3 for sale/rent below market rate
New approach could be a solution for other vacant two- and four-family residential buildings
Owners will purchase newly renovated duplex below market rate and live in one half while renting other half, also below market rate
Project made possible with funding from Detroit Housing and Revitalization Department and Strategic Neighborhood Fund

The City of Detroit and funders today joined the Osborn Neighborhood Alliance to showcase a new approach to redeveloping vacant duplexes that creates both wealth-building opportunities and affordable housing for Detroiters.

The Osborn Neighborhood Alliance, a neighborhood-based nonprofit with experience in single-family home rehab projects, will be renovating three vacant duplexes on Mapleridge Street between Gratiot Avenue and Schoenherr Road in District 3. The duplexes will provide six new units of affordable housing for residents, all of which will have three bedrooms and two bathrooms.

In one of the first projects of its kind, each of the duplexes will be sold at a deeply discounted rate to homebuyers with incomes at or below 80% of the area median income. Those purchasing the duplexes will live in one unit and rent out the other, providing an excellent opportunity for moderate-income households to build generational wealth.

The rental units will be offered as affordable housing to households with incomes up to 60% of the area median income who have Section 8 housing vouchers to provide a safe, affordable, and spacious place to live.

“We are seeing vacant multi-unit apartment buildings and single-family homes being renovated and reoccupied at a remarkable rate across the city,” said Mayor Mike Duggan. “What we haven’t seen enough of is renovation of vacant duplexes and four-family flats. What Quincy Jones and the Osborn Neighborhood Alliance are doing here on Mapleridge is another great example of how Detroiters are rebuilding Detroit.”

Each home will be fully renovated, complete with new kitchens, new bathrooms, new roofs, granite countertops, and stainless-steel appliances. Renovations are expected to be complete by the end of this year.

Osborn pic1 — (front; left to right) Quincy Jones, executive director of the Osborn Neighborhood Alliance, is joined by Camille Walker-Banks of LISC Detroit; Julie Schneider, Director of the City of Detroit’s Housing and Revitalization Department; and Tammy Daniels, CEO of Detroit Land Bank Authority.

The project received $500,000 in Community Development Block Grant funding from the City of Detroit Housing and Revitalization Department, $288,000 in Strategic Neighborhood Fund grants from Invest Detroit, and a construction loan from Local Initiatives Support Corporation (LISC).

“We are always excited to support projects that provide neighborhood leaders the tools to increase the quality of life in their communities,” said Julie Schneider, director of the City of Detroit’s Housing and Revitalization Department. “By providing ownership opportunities and affordable rental housing, the Mapleridge duplex project is enhancing generational wealth and household stability for the Osborn neighborhood.”

Osborn pic2 — Pictured are two of three vacant duplexes on Mapleridge Street that are being newly renovated by the Osborn Neighborhood Alliance to provide affordable housing for Detroiters.

The Osborn Neighborhood Alliance is partnering with Al Bogdan and AAB Development Services for this project. Rich Salem and Prime Renovation & Construction will serve as general contractor for the development. Matrix Human Services will provide assistance in connecting the homebuyers with renter applicants who have Section 8 Housing Choice Vouchers.

“The Strategic Neighborhood Fund is truly a collaboration between corporations and Detroit neighborhoods to increase the quality of life and so that communities become a place where residents, live, work and play,” said Quincy Jones, executive director of the Osborn Neighborhood Alliance. “We sold two of the three Mapleridge duplexes before renovations even began, so I see this as a business model that could be successfully replicated in Osborn and other neighborhoods.”

The duplexes were formerly owned by the Detroit Land Bank Authority and had been vacant for more than a decade.

“The land bank is proud to continue our long-standing partnership with the Osborn Neighborhood Alliance,” said Detroit Land Bank Authority Chief Executive Officer Tammy Daniels. “They bought their first house from us in 2017, on this same block, and we are thrilled to see them building on that success. We hope the work they’re doing to transform these duplexes into safe, affordable housing will inspire others to work with the DLBA and get creative tackling blight in their neighborhoods.”

Osborn pic3 — New homeowner, William Griffin, and his family will be moving into the renovated duplex in the Osborn neighborhood.

Councilmember Scott Benson (Dist 3) represents the Osborn Neighborhood and expressed his support for this innovative approach.

"As the recent work of my Wealth Generation Task Force points out, the ability to purchase and maintain a home is a key component of building generational wealth for Black families," said Councilman Scott Benson. "This proposed project will help families achieve this goal by providing homeownership opportunities for families and will provide affordable rental housing for tenants who rent out one of the units in the duplexes. Clearly, this is a win-win situation for Osborn neighborhood."

The development is the latest project to tap the Strategic Neighborhood Fund (SNF), which helps strengthen neighborhoods through targeted investments in parks, streetscapes, commercial corridors and single-family housing. All along the way, the plans are guided by resident input, empowering them to decide the future of their neighborhoods.

"The Strategic Neighborhood Fund is thrilled to support a partner who brings an innovative approach to affordable housing solutions" said Jermaine Ruffin, senior vice president for neighborhoods at Invest Detroit, which administers the SNF. "This project includes a wealth building opportunity that can move our work closer to realizing stronger and more resilient Detroit neighborhoods.”

“LISC lending products have made an impact in the growth of Detroit neighborhoods for over 30 years”, says Camille Walker-Banks, executive director of LISC Detroit. “Community-Development Financial Institutions have a responsibility to ensure that neighborhoods like Osborn have access to the credit needed to thrive and participate fully in the local economy. By doing so, LISC lending has helped individuals and community development organizations achieve their goals of providing homeownership opportunities and build long-term financial stability in the City. This development will attract other investment.”

About Invest Detroit

Invest Detroit is a mission-driven nonprofit lender, investor, and partner that supports business and real estate projects that will ignite economic growth in Detroit and the region. Their goal is to increase density and job opportunities in a way that is strategic and inclusive. Learn more at www.InvestDetroit.com.

About the Strategic Neighborhood Fund

The Strategic Neighborhood Fund a $150 million initiative piloted in 2016 by Mayor Duggan and Invest Detroit. It began with a $42 million investment in three initial neighborhood areas: Livernois/McNichols, Southwest/Vernor and Islandview/Greater Villages. Two years later, the SNF initiative was expanded to seven more areas and funded by an investment of $5 million each from seven corporations: American Axle, Blue Cross Blue Shield of Michigan, Chemical Bank, Fifth Third, Flagstar Bank, Huntington, and Penske. Chemical and Huntington have since merged. Fifth Third Bank is the corporate partner in Gratiot/Seven Mile.