News Summary
Detroit is facing an affordable housing crisis, with only 900 of the targeted 2,000 new multi-family affordable units completed by 2023. Despite ongoing construction of over 1,400 units, a report highlights a need for an additional 46,000 affordable units. Mayor Mike Duggan emphasizes investment initiatives and a new task force to address the situation, amid rising rental costs and economic challenges for residents. The city seeks to enhance affordable housing access and integration in more desirable neighborhoods.
Detroit is struggling to meet its affordable housing goals, even as it has made some advancements and introduced new incentives. The city had aimed to build 2,000 new multi-family affordable housing units by 2023, but has only seen the completion of approximately 900 new affordable housing units between 2018 and 2023, through both new construction and rehabilitation efforts. While there are currently more than 1,400 units of affordable housing still under construction, the recent findings from a 2023 report by the Detroit Justice Center reveal the city’s urgent housing crisis, indicating a shortfall of at least 46,000 affordable housing units needed to meet the demand.
Currently, over 82,000 homeowners and renters in Detroit find themselves paying more than 30% of their income on housing, a significant financial burden. The city has a total of 37,000 existing or planned affordable units, which contributes to the broader calculations surrounding the housing shortage. The situation has drawn attention from mayoral candidates, with the Rev. Solomon Kinloch highlighting the critical need for affordable housing, especially in light of recent tragic incidents related to homelessness.
To tackle the affordable housing crisis, the Duggan administration is pushing forward with the expanded Payment in Lieu of Taxes (PILOT) ordinance, which is designed to entice developers to invest in the construction of affordable housing units. Instead of traditional property taxes based on property value, the PILOT program allows developers to pay a percentage of their rental revenue. Since its launch in February, the program has seen 74 applications completed and another 106 pending. Mayor Mike Duggan has announced that $1 billion in affordable housing units has been either built or preserved in the last five years, and further financial investment is expected to help residents avoid being priced out of their neighborhoods.
In response to the persistent housing shortage, Kinloch has proposed the creation of an affordable housing task force aimed at producing 10,000 affordable housing units as a targeted goal for the city. The U.S. Department of Housing and Urban Development defines affordable housing as costing no more than 30% of a household’s income, underscoring the need for accessible housing options.
Several projects are currently underway, including the Preserve on Ash in Corktown, which will feature 69 units of mixed-income housing. This area has seen economic growth, yet the demand for affordable housing is crucial as rising rents continue to impose challenges on residents. Critics have expressed concerns over the city’s definitions of affordability, arguing that they may not accurately reflect the economic realities many residents face.
Additionally, initiatives to foster affordable housing construction include community land trusts, which aim to alleviate market pressure on property values. New apartment developments, such as the Left Field apartments near the former site of Tigers Stadium, have sparked critiques regarding the availability of low-income options, with limited offerings provided. The District Detroit project, led by the Related Companies, has faced setbacks that resulted in the withdrawal of affordable housing commitments for a new downtown apartment building.
To support these efforts, the Detroit City Council has allocated $3.7 million in the city budget to establish a community land trust, intended to aid in the development of affordable housing. Recent openings in Brush Park and Midtown now offer 86 affordable units, with rents beginning as low as $450 per month. City officials have reiterated that affordable housing should be integrated into more desirable neighborhoods, rather than being confined to less sought-after areas. This focus reflects an understanding that equitable access to housing is vital for the overall health and stability of the city.
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Additional Resources
- Detroit News: Affordable Housing Shortage and Pilot Ordinance
- Wikipedia: Affordable Housing
- Detroit News: Community Land Trusts for Affordable Housing
- Google Search: Detroit affordable housing crisis
- Crain’s Detroit: Senior Affordable Housing Units
- Encyclopedia Britannica: Housing
- The Conversation: Detroit’s Lack of Affordable Housing
- Google News: Detroit affordable housing news
