Mayor Duggan, city officials celebrate groundbreaking of $12M affordable housing project near Virginia Park

• Merrill Place II will offer 14 of its 27 units to Detroiters with incomes at or below 60% of the area median income
• Development received nearly $3 million from the City of Detroit, including American Rescue Plan Act funding
• Neighborhood’s first new ground-up multi-family construction in more than a decade
• Developer Sauda Ahmad-Green has long history in neighborhood

Mayor Mike Duggan today joined developer and native Detroiter Sauda Ahmad-Green to celebrate the groundbreaking of Merrill Place II, a new 27-unit mixed income residential development near Henry Ford Hospital and the Virginia Park neighborhood that will provide 14 units of affordable housing.

Located at 1312 Seward on a currently vacant lot, the new $12 million multi-unit residential building will offer 9 one-bedroom units and 18 two-bedroom units. Fourteen of the building’s units will be reserved for households with incomes up to 60% area median income. The first floor of the building will include parking and a lobby for residents.

“This area near Henry Ford Hospital is about to see $3 billion in new development and projects like Merrill Place are going to be critical to making sure Detroiters of all income levels will be able to afford living here,” said Mayor Duggan. “Developer Sauda Ahmad-Green has deep ties to this neighborhood, so nobody knows better what type of housing is needed here than her.”

Merrill Place II will build upon the success of Ahmad-Green's adjacent Merrill Place I, a project that substantially rehabbed six neighboring townhomes in 2012 that now offer housing for moderate-income households.

Located in the footprint of Henry Ford Hospital - Detroit, Merrill Place II is the neighborhood’s first new multifamily housing development in more than a decade. Besides quick access to the health system, the property will provide Detroiters a new affordable housing option close to community amenities like Wayne State University, parks, shopping centers, and museums.

“I’m happy to see this type of investment which will expand and grow this amazing community,” said Detroit City Council President Mary Sheffield. “Having developers from the community is vital to neighborhood development because they know firsthand the needs of the neighbors that have been instrumental in their growth and success. I look forward to the completion of the project which will serve as an anchor for Virginia Park for years to come.”

Along with Lower-Income Housing Tax Credits and direct financing from the Michigan State Housing Development Authority, Merrill Place II received $1 million in HOME funding and nearly $2 million in American Rescue Plan Act Funding from the City of Detroit’s Housing and Revitalization Department.

“We want to say congratulations to Sauda Ahmad-Green on her tireless efforts to make this important project happen,” said Julie Schneider, director of the City of Detroit’s Housing and Revitalization Department. “We are so excited to be able to support not only the creation of affordable housing in one of Detroit’s growing neighborhoods, but the work and leadership of an emerging Detroit developer.”

“MSHDA was pleased to help finance Merrill Place II, which will provide 14 new units of quality affordable housing for Detroiters,” said Gary Heidel, Michigan State Housing Development Authority acting chief of staff. “These homes will provide equitable access to opportunities the city has to offer, including jobs, healthcare, education, recreation, shopping and entertainment.”

The Michigan Economic Development Corporation is also providing $1 million in grant funding from the Michigan Commercial Revitalization Program. Cinnaire provided the LIHTC equity investment.

"This project demonstrates the state’s continued commitment to Detroit by revitalizing underutilized properties that will fill critical housing needs for our residents and build a foundation for long-term economic prosperity statewide so that everyone can feel proud to Make it in Michigan,” said Matt McCauley, Senior Vice President of Regional Prosperity at the Michigan Economic Development Corporation.  “We’re committed to continuing to partner with communities and local leaders to help develop attractive places, help support the needed housing and attract and retain talent in Detroit.”

Ahmad-Green's firm, S&S Development Group, also received predevelopment financing and key financial support from community partners Ebiara, LISC and Capital Impact Partners.

Ebiara provided platform capital to S&S to support both Merrill Place II and the firm’s future growth. Ebiara Fund is designed specifically to ensure that developers of color not only participate in Detroit’s rebuilding but also grow and scale emerging development firms that play a leadership role in that effort going forward. Providing capital to firms like S&S Development and the Merrill Place project continues the fund’s efforts to support the growth and scaling of Black and Brown development firms throughout the city. Ebiara is a partnership between URGE Imprint, Invest Detroit, and The Kresge Foundation.

“S&S Development is the first African American women-led firm supported by Ebiara,” said Rod Hardamon, Managing Director of Ebiara, “Merrill Place is the largest project to date for S&S and the ability to participate in the firm’s growth is the exact reason we launched the Ebiara Fund.  We are committed to inclusive economic development throughout our neighborhoods and city.”

Capital Impact Partners is a nonprofit community development financial institution (CDFI) that provides capital, programmatic, research and policy investments at the neighborhood level. Ahmad-Green is a graduate of Capital Impact Partners’ Equitable Development Initiative and is happy to be working with them on this project. "We're proud to continue working with Sauda, who graduated from our very first Equitable Development Initiative class in Detroit, and to provide grant funding and predevelopment loans in support of her commitment to creating more affordable housing for Detroit's residents," said Damon Hodge, Senior Loan Officer for Capital Impact Partners, part of the Momentus Capital branded family of companies. "As a mission-driven nonprofit lender, our goal is to help the Detroit area's entrepreneurs close the racial wealth gap while providing them — and the communities they serve — with access to the capital and opportunities they deserve." 

Local Initiatives Support Corporation is the largest national community development intermediary, combining corporate, government, and philanthropic resources to help community-based organizations revitalize their neighborhoods.

“LISC believes in Ms. Green and the Virginia Park neighborhood, demonstrated by our investment in the Merrill Place II project during the predevelopment phase,” said LISC Executive Director, Camille Walker-Banks. “In addition, LISC continues its support of minority and local emerging developers.”

Deep Neighborhood Ties

Developer Sauda Ahmad-Green said the project is special because she grew up in the same neighborhood she is now helping reenergize with the development of Merrill Place II.

Growing up, Ahmad-Green used to walk past Merrill Street every time she went to school. She said she thinks Merrill Place II will represent the neighborhood’s vibrant history and promising future.

“It’s incredibly rewarding to give back to the neighborhood that raised me by creating affordable housing options for Detroit residents,” Ahmad-Green said. “Virginia Park and New Center are such vibrant community hubs, so I’m excited to be developing housing that offers Detroiters easy access to such vital amenities.”