
Residents will not pay more than 30% of their income each month thanks to vouchers through the Detroit Housing Commission.
Detroit-based, minority-owned Nova Development hopes to complete $5.4M project in 2023.
City invested $2M in funding in development, which replaces vacant land near major intersection along border with Grosse Pointe Park.
DETROIT – Mayor Mike Duggan joined City officials and Nova Development Group of Detroit today to break ground on 14 new deeply affordable housing units on Mack and Alter roads on the city’s east side.
These apartments will be specifically geared toward low-income disabled Detroiters, ensuring access to affordable, quality housing within the city limits. To qualify for one of these units, applicants must have a physical or mental disability under Detroit Housing Commission (DHC) supportive service guidelines.
All 14 units offer affordable rates at 50 percent to 60 percent area median income (AMI), but no resident of the Mack Alter Homes will pay more than 30 percent of their income for rent and utilities thanks to project-based vouchers through DHC, which will pay the difference. Construction is expected to take about 14-months and is scheduled to be completed in July 2023. The affordability is guaranteed for 30 years.
Funding for the $5.4 million ground-up project includes $1.8 million in federal HOME funds and $179,000 in Community Development Block Grant funding through the Detroit Housing & Revitalization Department. The City also is providing a payment in lieu of taxes (PILOT) program, which allows the developer to pay a 10% fee on the total rents they collect each year, rather than the regular property tax rate. The land for the project, located at 3141 Alter in the Riverbend neighborhood, was bought from the Detroit Land Bank Authority.
“This project is an example of this administration’s commitment to building a Detroit for everyone,” Mayor Duggan said. “It will not only provide an affordable and beautiful place to call home but also represents an investment in the far east side as we continue to build back our neighborhoods.