News Summary

Detroit has completed renovations on two formerly vacant apartment buildings, Kingsley Arms and Lee Arden, adding 88 units of affordable housing. The $10.3 million project aims to address the city’s housing crisis, providing living options for low-income residents. Renovations included new systems and enhanced common areas. The development also saw the grand opening of two additional projects, contributing significantly to affordable housing in the area amidst ongoing challenges in the local housing market.

Detroit Celebrates Completion of Two New Affordable Housing Developments

Detroit has officially completed renovations on two formerly vacant apartment buildings, Kingsley Arms and Lee Arden, located in the city’s Piety Hills neighborhood. This development adds a total of 88 units of affordable housing to a city that has been working to address its housing crisis. The buildings, which had been empty for over a decade, have undergone extensive renovations costing $10.3 million, with a focus on providing affordable living options for residents.

Details of the Renovations

The Kingsley Arms at 646 Hazelwood St. and Lee Arden at 660 Hazelwood St. have both received substantial upgrades, including the installation of new electric, plumbing, and HVAC systems, window and roof replacements, and enhancements to common areas. Kingsley Arms currently has 60% of its units leased, while Lee Arden is at 20% occupancy, with residents already moving in.

The renovation costs were divided as follows: Kingsley Arms renovations totaled $4.9 million, while Lee Arden amounted to $5.42 million. Significant funding sources included $6.69 million from the Detroit Housing for the Future Fund and $2.1 million from the PACE Loan Group, aimed at supporting sustainable upgrades such as LED lighting and efficient water fixtures. These improvements enabled the project to qualify for additional financing through the Wayne County Property Assessed Clean Energy Program.

Affordability and Housing Statistics

Rent for the newly renovated units starts at $805, with this affordability guaranteed for 13 years. Some units have been set aside for very low-income residents: nine units in each building are designated for residents earning 45% or less of the area median income (AMI), while another nine per building are earmarked for those at 55% of AMI. The remaining units cater to individuals and families earning up to 80% of AMI.

This development represents a significant effort to restore nearly an entire city block and create more affordable housing options within Detroit’s landscape. The Detroit Housing for the Future Fund has financed a total of 19 completed projects, resulting in a cumulative total of 656 affordable housing units throughout the city.

Additional Affordable Housing Developments

On the same day as the completion celebration for Kingsley Arms and Lee Arden, the grand opening of two additional affordable housing projects was also held, contributing a combined total of 86 new units in Brush Park and Midtown. The Brush Park Apartments is a $19 million project that boasts 53 affordable units alongside approximately 3,800 square feet of commercial space. The MLK on 2nd project, costing $11.5 million, features 33 units with ground-floor commercial facilities aimed at community engagement.

Of the newly created 86 units across these developments, 63 are categorized as “deeply affordable” for households earning 60% of AMI or below, while the remaining units accommodate families earning up to 80% AMI. However, current market conditions see affordable units in Detroit priced between $1,000 and $1,400 for one or two-bedroom apartments, still beyond the reach of a substantial segment of the population. With the city’s average household income around $35,000, many residents find these rates unaffordable.

Context and Ongoing Challenges

According to the U.S. Census Bureau, approximately 45.6% of Detroit households earn less than $40,000 annually. This indicates that a significant portion of the population struggles to access affordable housing options. While recent developments aim to address this issue, the ongoing debate raises questions concerning the effectiveness of the city’s affordable housing initiatives in truly supporting low-income residents.

Going forward, it will be essential for city officials and stakeholders to implement targeted strategies to ensure that affordable housing needs are met in an inclusive and equitable manner for all Detroit residents.

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Additional Resources

• Detroit Free Press: Empty Apartment Buildings Reopen in Piety Hill
• ClickOnDetroit: Orchard Village Project Delivers Affordable Housing
• Michigan Chronicle: Affordable Housing in Detroit
• Fox 2 Detroit: New Affordable Housing Units in Brush Park
• Wikipedia: Affordable Housing

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