Mayor Mike Duggan and The Community Builders, along with City, State and Federal officials, joined funders and Corktown residents today to present the key to a new resident of the first phase of Preserve on Ash, bringing more affordable housing to one of the city’s fastest growing neighborhoods.
The new development celebrates the key homecoming (ribbon cutting) for the second completed phase in the plan that will construct more than 600 new and preserved units of affordable housing in Greater Corktown, made possible thanks to a $35 million Choice Neighborhoods grant the US Department of Housing & Urban Development awarded to the city of Detroit in 2021. The City had sought the highly-competitive grant anticipating the rising rents that would be coming to Corktown as a result of Ford’s revitalization of Michigan Central Station and other major investments in the area.
“Corktown is growing faster than almost any neighborhood in Detroit, and longtime residents from this neighborhood should be able to enjoy the progress without concerns about being priced out,” said Mayor Mike Duggan. “The Preserve on Ash is an important example of how a growing city like Detroit can pair economic momentum with a strong commitment to affordability, stability, and opportunity for residents.”
Preserve on Ash I (POA I) includes 69 total mixed-income housing units across five buildings, and more than 5,800 square feet of retail space. 48 of the units in Phase I are rent and income restricted at or below 30% to 60% AMI. 22 units will also have project-based vouchers from MSHDA, so that rent payments will be based on household income.
POA I is part of a multiphase development strategy, led by The Community Builders, a leading nonprofit housing organization, to bring a total of 160 new construction, mixed-income rental units through to the North Corktown area north of I-75. Preserve on Ash phases II and III are expected to start construction next year.
“This Home for the Holiday milestone reflects what’s possible when strong partnerships come together. Working hand-in-hand with the City of Detroit, we’ve turned a shared vision into real homes for families,” said George Tabit, senior vice president of real estate development at The Community Builders. “Preserve on Ash is proof that collaboration can create inclusive neighborhoods where everyone has the chance to thrive.”
This Home for the Holidays key presentation event comes a year after the historic Michigan Central’s grand reopening. The campus sits less than a mile south from POA I. Ford Motor Company’s revitalization of Michigan Central represents $1 billion in investment, with hundreds of employees now calling the historic train station home. As part of the city’s 2018 Michigan Central Community Benefits Ordinance, Ford Motor Company invested $2.5 million into the Detroit Housing for the Future Fund (DHFF) to create and protect affordable housing in the Corktown neighborhood. DHFF invested $2.5 million in POA I to move the project forward.
The project is supported with $2.77 million from the HUD Choice Neighborhoods Initiative. Detroit’s Choice Neighborhoods Implementation grant will not only preserve and construct new affordable housing throughout Historic and North Corktown, but it will also provide critical neighborhood improvements, as well as TCB Community Life supportive services targeted to low-income residents in areas of health, education and economic self-sufficiency. TCB’s Community Life housing stability and economic mobility package for residents includes rent reporting for credit building, escrow savings accounts and financial coaching.
“MSHDA supports housing that remains affordable and accessible for Detroiters as Corktown and surrounding neighborhoods continue to grow,” said MSHDA Chief Housing Investment Officer Tony Lentych. “Our partnership with the City of Detroit has helped deliver inclusive housing that strengthens the community and gives residents more options to remain in the neighborhoods they choose to call home.”
The 9% Low Income Housing Tax Credit (LIHTC) and 9% gap financing from the Michigan State Housing Development Authority supported 69 units within five buildings, comprised of one-bedroom, two-bedroom and three-bedroom units. Seven units are reserved for mobility-impaired residents, and two units are for hearing or sight-impaired residents. Unit amenities include a dishwasher, refrigerator, oven & microwave, central air and in unit laundry.
“As neighborhoods like Corktown experience renewed investment and growth, it’s critical that long-time residents can share in that progress,” said Anna Shires, Vice President, Associate Director, Community Investment Outreach at the Federal Home Loan Bank of Indianapolis. “FHLBank Indianapolis is proud to partner with the City of Detroit and The Community Builders on Preserve on Ash, helping ensure these homes remain affordable and accessible so families can stay rooted in the community they’ve helped build.”
The Michigan Strategic Fund Board approved a $2.3 million Community Revitalization Program loan in December 2023 for the project, building upon multiple strategic investments in and around the City of Detroit as it becomes a national model for growth and development.
Other funders include President Biden’s American Rescue Plan Act (ARPA) and the State of Michigan’s Department of Environment Great Lakes and Energy. In addition to permanent and construction financing from Bank of America.
DHFF, a private investment fund aimed at directing capital to creating new and preserving existing affordable housing in Detroit, is anchored by a $15 million commitment from JPMorgan Chase of the fund’s 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 with the City of Detroit’s Housing & Revitalization Department and the Michigan State Housing Development Authority (MSHDA). Including the Preserve on Ash, the DHFF has now invested $37 million in projects totaling 587 new or preserved affordable units in the city.
A continued commitment to Corktown
As part of the Corktown HUD Choice strategy, the 87-unit HUD-assisted development known as Clement Kern Gardens (CKG) is being razed and in phases and rebuilt. When it was built in 1985, the 9-acre site is isolated with berms and fencing, and streets are cut off. Under this plan, the street grid will be reconstructed to better connect the neighborhood. As CKG is being redeveloped by American Community Developers (ACD), current residents who want to stay in Corktown will be given priority to relocate to Left Field, Preserve on Ash I and future developments in the Corktown Choice plan.
Once CKG is redeveloped, those residents who relocated to other affordable units can either stay in their new homes or choose to return to the rebuilt CKG site. Most importantly, existing CKG residents who qualify will continue to pay rent based on their income, and their housing needs and status will be prioritized throughout the Greater Corktown HUD Choice project. Work on redeveloping Clement Kern started last month.
The plan also calls for a new economic empowerment center to be built upon the former site of the Owen School.
More than $1 billion has been invested in affordable housing in Detroit over the past five years as part of a massive effort to ensure that longtime Detroiters of all income levels can live in any neighborhood they choose. POA I will contribute to another $1 billion invested in affordable housing within the City of Detroit.