Like most major cities, the demand for housing, especially affordable housing, is soaring in Detroit. And the supply of multifamily units can’t keep up with this demand.
In an effort to boost the city’s housing supply and meet the demand for more affordable units, a partnership between the City of Detroit, a Lansing, Michigan-based non-profit, local residents and corporate donors is working to bring 53 new multifamily units to the Southwest side of the city on what has long been an empty lot.
Mayor Mike Duggan and councilwoman Gabriela Santiago-Romero joined the Southwest Detroit Business Association and Cinnaire Solutions late last month to celebrate the start of construction on La Joya Gardens, a mixed-use, mixed-income residential and commercial building at 4000 W. Vernor Highway in Southwest Detroit.
La Joya Gardens is the latest project supported by the Strategic Neighborhood Fund (SNF), a partnership between the City of Detroit, Invest Detroit, neighborhood residents and corporate donors. SNF funds community-driven projects, each of which begins by soliciting input from residents.
SNF, with assistance from PNC Bank, provided $1.6 million in gap funding, dollars that help keep a portion of the new units as affordable to lower-income residents.
“In neighborhoods across Detroit, the Strategic Neighborhood Fund is helping us build new affordable housing and bringing new life to our historic commercial corridors like West Vernor,” Mayor Duggan said at the recent ground-breaking ceremony. “For years, this key corner has been an empty lot, but thanks to SDBA, Cinnaire Solutions and the SNF, it will once again be thriving and a beautiful place for Detroiters and small businesses to call home.”
La Joya Gardens is a $24 million development that will offer 47 one-bedroom and six two-bedroom apartments, with 42 reserved as affordable for those earning 30% to 80% of the area median income. That translates to rents as low as about $500 a month for a one-bedroom.
When it opens next summer, the development will also offer about 6,000 square feet of retail space and 1,500 square feet of flexible community space on the ground floor with indoor and outdoor seating for social gatherings and special events.
The development in the city’s Hubbard Farms Historic District will also include a landscaped plaza and a 500-square-foot café that will be available for rent by Southwest Detroit-based businesses and entrepreneurs.
“My six policy priorities include housing and equitable development, so I am thrilled to be here today to celebrate the groundbreaking of La Joya Gardens. Projects like these are what transform our neighborhoods,” said Council Member Gabriela Santiago-Romero, during the ceremony. “When we leverage funding to invest in real estate that becomes an affordable home to residents and provides opportunities for a small business owners to realize their dreams of a brick-and-mortar location, we all win.”
La Joya, which means “jewel” in Spanish, was a name chosen by residents during the project’s community engagement process. In 2018, the development team kicked of the project with a six-month “participatory design” phase in which more than 200 local stakeholders met with the architects in a series of meetings and focus groups.
Residents and local businesses voiced their suggestions and voted on the building’s design elements, types of businesses, and community services they wanted to see, and participated in a contest to name the new community.
“Today’s ground-breaking marks a pivotal moment for La Joya Gardens, an exciting development project that will not only add high-quality, affordable housing and community space for local residents to enjoy, but also prime retail space along one of the city’s most vibrant commercial corridors,” said Laura Chavez-Wazeerud-Din, SDBA’s Vice President of Programs & Compliance. “We are immensely grateful to all of the development partners who helped bring our community’s vision to fruition.”
Designed by SITIO Architecture + Urbanism, the mixed-use development brings urban vitality to an entire city block along West Vernor Highway that has stood vacant for more than a decade.
“We believe there is no higher purpose than serving others,” said Chris Laurent, president of Cinnaire Solutions. “Through our service, we hope to further enhance the lives of residents in the community.”
A history of investment
Since 2018, SNF has invested $118.5 million in 72 projects in Detroit. This includes parks, streetscape overhauls, single-family housing stabilization and commercial corridor revitalization. The fund also works with other city initiatives such as Motor City Match to amplify its impact on communities across the city of Detroit.
“SNF is creating real momentum in Detroit’s neighborhoods” said Keona Cowan, Executive Vice President for Lending with Invest Detroit. “Residents are excited about this project. It will spur more investment in the area, and Invest Detroit and SNF are excited about opportunities to fund more projects along West Vernor, the main street of Southwest Detroit.”
The City of Detroit’s Housing & Revitalization Department (HRD) invested $2.36 million in La Joya Gardens through HOME and the Affordable Housing Development and Preservation Fund.
“Projects like La Joya Gardens are so important because they not only create new affordable housing, but revitalize our commercial corridors and make our neighborhoods more engaging places to call home,” said Julie Schneider, director of HRD. “The deep affordability La Joya will bring is also essential in our efforts to build back neighborhoods everyone can afford to call home.”
Additional funding for La Joya Gardens also includes a $12.4 million 4% and 9% Low Income Housing Tax Credit investment from Cinnaire; a $3.2 million loan and a $588,647 HOME/House Trust award from the Michigan State Housing Development Authority; a $500,000 Affordable Housing Program Award from the Federal Home Loan Bank of Indianapolis; a $1.6 million investment from Invest Detroit through the Strategic Neighborhood Fund; and a $500,000 investment from the Detroit Economic Growth Corporation.
“This development ticks a lot of boxes for MSHDA. It’s going to bring a mixed-use, mixed-income residential and commercial development to a historic neighborhood, where I’m confident it will become a catalyst for revitalization,” said MSHDA Executive Director Amy Hovey. “With a majority of apartments set aside for residents with low incomes, this project will help fulfill our mission of ensuring every Detroiter who needs it has affordable housing as a foundation to reach their full potential.”
Other partners helping SDBA and Cinnaire Solutions in making La Joya Gardens a reality include 511 Design, the Detroit Economic Growth Corporation, Detroit Housing Commission, O’Brien Construction, and Flagstar Bank.