A couple years after Detroit filed for Chapter 9 bankruptcy in 2013, nonprofit real estate developer Develop Detroit came on the scene with the goal of preserving and building affordable housing in and around the city.
The firm, founded in 2015 with significant financial backing from JPMorgan Chase, the Ford Foundation, and The Kresge Foundation, was sponsored by the Housing Partnership Network (HPN).
Develop Detroit has acquired several multifamily properties in the city but is now expanding to the single-family side. It recently announced plans for a new for-sale home building and renovation project in both the North End and Grandmont-Rosedale neighborhoods. Homes built in Grandmont-Rosedale will be in partnership with the Grandmont-Rosedale Development Corporation. The project also marks the first scaled, for-sale, new construction in the North End in decades.
“After months of planning, we’re happy to announce this project and continue to make strides toward enhancing and reinforcing the urban vitality of the North End and Grandmont-Rosedale neighborhoods,” said Sonya Mays, Develop Detroit president and CEO, in a statement. “This project goes beyond creating affordable housing for Detroiters, particularly in the North End. It will add needed energy, increase neighborhood density, and provide more opportunities for residents, existing and new.”
In the first phase of the program, Develop Detroit will build 12 new homes in the North End, rehab seven existing homes in the North End, and rehab an additional 11 existing homes in Grandmont-Rosedale. It have plans to add up to 40 homes in phase two of this program, representing up to 70 homes total.
Work on the soon-to-be rehabbed homes will begin June and construction on the new homes will begin in August. Homes will go on sale in August and will be fully constructed by March 2019. Most of the homes will be market-rate (mid-$100s to low-$300s), and 20% will be considered affordable.
“Develop Detroit’s work to build housing that is affordable and dynamic is aligned with the city’s goal to build one Detroit for all of us,” said Arthur Jemison, director of housing and revitalization for the City of Detroit, in a statement. “This development and investment will drive inclusive growth in the North End and Grandmont-Rosedale and give residents an opportunity to participate and live where they desire, no matter their income or background. We’re proud to have an organization like Develop Detroit doing this important and inclusive work in our city.”
“This initiative is a testament to the impact of Develop Detroit’s entrepreneurial approach to revitalizing homes and neighborhoods,” added Thomas Bledsoe, president of HPN, in a statement. “Develop Detroit is built upon the best practices of HPN’s national network of high performing nonprofit developers. It’s exciting to see the expertise and capital we bring successfully leveraging the power and commitment of their partners in city government, community organizations, and institutions like JPMorgan Chase, to create new homeownership opportunities for Detroit residents.”
