Good Housing Preserves Affordable Housing in Suburban Detroit
CPC Mortgage facilitated the $42 million note.
Good Housing Partnership and the Inkster Housing Commission have obtained a $42.1 million loan for the preservation and rehabilitation of Parkside Estates and Demby Terraces, two properties totaling 315 units of affordable housing in Inkster, Mich., a suburb of Detroit.
The properties, located at 3703 South Henry Ruff Road and 28078 Annapolis Street respectively, will undergo a full rehabilitation and conversion under the Department of Housing and Urban Development’s Rental Assistance Demonstration program, transitioning from public housing to Section 8. All 315 units will remain affordable to households earning at or below 60 percent of the area median income.
The rehabilitation will feature upgrades to both the site and residential units. Planned improvements include repairs to concrete walkways, enhanced signage and landscaping upgrades.
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The owners will also add new roofs, doors, windows, exterior lighting, masonry and siding repairs, along with fresh paint. In the apartments themselves, Good Housing will upgrade the kitchens, bathrooms flooring, lighting fixtures, water heaters, HVAC condensers and furnaces.
CPC Mortgage Co., a subsidiary of The Community Preservation Corp., structured the tax-exempt loan, which will provide permanent financing through a Freddie Mac Targeted Affordable Housing forward commitment.
Huntington Bank served as the lead arranger and agent of the construction loan, with Deutsche Bank and Associated Bank acting as co-lenders. Cinnaire acted as the Low-Income Housing Tax Credit syndicator, and the Michigan State Housing Development Authority served as the bond issuer.
Detroit’s affordable housing pulse
Developers added 1,778 units to Greater Detroit’s multifamily stock during the past year, according to Yardi Matrix data. That figure amounts to 0.8 percent of existing inventory, well below the national average of 3.1 percent. Market-rate assets dominated recent deliveries, while fully affordable communities accounted for about 29 percent of the addition.
Last year, Jonathan Rose Cos. acquired three multifamily properties with the goal of preserving affordability at each. Two of the apartment communities are in Michigan: Cambridge Towers in Detroit and North Port Village in Port Huron. Each of the communities is rent subsidized under project-based Section 8 contracts.
Also last year, Bedrock completed the transformation of eight mostly vacant acres in the city’s Brush Park neighborhood into City Modern, a mixed-use, mixed-income development with 20 newly constructed buildings and three rehabilitated historic mansions featuring 450 new residences. The community includes a 54-unit affordable senior housing property with housing designated for residents 55 and older.
