The Kresge Foundation, Local Initiatives Support Corporation, and JPMorgan Chase have announced a public-private partnership aimed at directing $75 million in private capital to affordable housing in Detroit.
The Detroit Housing for the Future Fund (DHFF) will address the impacts of gentrification and housing insecurity in the city by filling the funding gaps that limit developers' ability to preserve and create much-needed affordable housing. Managed by LISC, the fund will provide developers and owners of affordable housing with streamlined access to financial tools specifically designed to address housing challenges in the city.
The fund has already raised $48 million in private capital toward its $75 million goal, including $15 million from JPMorgan Chase and a $10 million guarantee from the Kresge Foundation. An additional $15.5 million in low-interest lending will be provided by Flagstar Bank, Citizens Bank, and First Independence Bank. Previously announced commitments totaling $17.5 million were made by Blue Cross Blue Shield of Michigan, Fifth Third Bank, TCF/Chemical Bank, Ford Motor Co., Penske Corp., Huntington Bank, and Flagstar.
The fund, the largest ever created to address affordable housing needs in Detroit, represents the privately funded portion of the larger Affordable Multifamily Housing Strategy announced by the city in 2018.
"We've seen the mass displacement of longtime, lower-income residents that occurred in places like Washington, D.C., Brooklyn, Philadelphia, and [other cities] because as they redeveloped, they didn’t have a plan to preserve affordability and protect these residents," said Detroit mayor Mike Duggan."What you're seeing here today is a historic commitment by the city and its partners to make sure we are building a city where Detroiters of all income levels can afford to live in any neighborhood they wish."
(Photo credit: imagixian/Gettyimages)