Pistons-affiliated housing development among 3 in Detroit awarded tax credits

Three Detroit housing developments — including a unique collaboration between Henry Ford Health and the Detroit Pistons — received federal tax credit awards aimed at ensuring affordability for years to come.

Gov. Gretchen Whitmer in a Wednesday afternoon news release outlined the twice-annual allocation of federal Low Income Housing Tax Credits, administered in the state by the Michigan State Housing Development Authority.

The most recent allocation announced this week awards more than $17.3 million in tax credits covering 15 new construction and rehabilitation rental housing projects in 10 Michigan communities, and totaling more than 700 units, according to the release.

Beyond Detroit, projects in suburban Grand Rapids, Muskegon, Port Huron, Traverse City and tiny Watersmeet in the western Upper Peninsula were among those to receive allocations.

“Our mission is grounded in the belief that every Michigander deserves a safe, affordable, and quality place to call home in a community of their choice,” Tony Lentych, MSHDA’s deputy director and chief housing investment officer, said in the release. “With 708 affordable rental homes on the horizon, these investments will not only provide much-needed housing but also create jobs and boost local economies. We’re proud to work alongside developers and communities to make a lasting impact and address housing needs across the state.”

The credits can be claimed by a developer against their tax liability annually for up to 10 years in exchange for maintaining some degree of housing affordability. In the case of nonprofit developers, the credits are typically sold to an investor, with the proceeds being used as equity in the project.

725 Amsterdam

Among the projects to receive LIHTC funding is the collaboration between Detroit-based Henry Ford Health, Michigan State University and the Detroit Pistons NBA team owned by billionaire private equity investor Tom Gores.

The planned housing development at 725 Amsterdam St. in Detroit’s Tech Town area is part of a much larger redevelopment of Henry Ford Health’s campus and facilities in the surrounding New Center area.

The nearly $20 million housing component received $1.65 million in credits. The development consists of 40 new studio, one- and two-bedroom units, aimed at being affordable to those earning 30%-80% of the area median income. In Wayne County, that translates to incomes of between $20,160 and $53,760 for an individual, according to MSHDA figures.

Beyond the LIHTC allocation, the project is also funded with money from the federal Housing and Urban Development and solar tax credits.

A groundbreaking is expected on the project within the next year, according to a Pistons spokesman.

Gesu Senior Housing

A housing development between a Detroit Catholic parish and one of the region’s well-known affordable housing developers is also among those to receive LIHTC funding.

Gesu Parish Detroit and Bingham Farms-based MHT Housing Inc. were awarded just more than $1 million for a senior housing project near the city’s University District neighborhood.

The nearly $13.8 million project near Livernois and McNichols roads is also targeted at those with incomes between 30% and 80% AMI and is expected to include 36 one- and two-bedroom units for seniors.

In addition to the tax credits, funding comes from a mortgage from Cinnaire and federal HOME block grants.

Villages at Parkside

The redevelopment of a public housing project on Detroit’s east side was also among those to be awarded funding in this most recent allocation.

Villages of Parkside Phase III near Conner Street and East Warren Avenue was awarded more than $1.56 million for its $22 million project, being developed jointly by Novi-based Ginosko Development Co. and an affiliate of the Detroit Housing Commission.

The third phase of the project is set to consist of 54 one-, two-, three- and four-bedroom units for households earning between 40% and 60% AMI. Twenty-five of these units will be assisted by Project-Based Vouchers through the Detroit Housing Commission.

The Villages at Parkside is among the Detroit Housing Commission projects set to undergo a redevelopment, according to a report last year in Outlier Media.

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