Mayor Duggan, Developers Announce Affordable Housing Project in Detroit’s Grandmont Rosedale Neighborhood
- Nearly $10M renovation of 2 vacant buildings to create 35 new units of deeply affordable housing
- Grandmont Rosedale Park Collective II made possible by Detroit’s Strategic Neighborhood Fund
Detroit Mayor Mike Duggan, Detroit City Council President Pro Tem James Tate, developers Cinnaire Solutions and the Grandmont Rosedale Development Corporation announced today that renovations have begun on Grandmont Rosedale Park Collective II in Detroit’s Grandmont Rosedale neighborhood. The development, at 9710 W. Outer Drive, will renovate two vacant buildings, bringing 35 new units of affordable housing to the city’s west side.
The development is the latest project to tap the Strategic Neighborhood Fund (SNF), which helps developers foster vibrant and safe places for residents to walk, eat, shop and gather.
The Grandmont Rosedale Development Corporation (GRDC) has dedicated its work to preserving and revitalizing the Grandmont Rosedale communities of northwest Detroit. Closing in late March, GRDC adds its newest renovation to the list of affordable homes for the citizens of Detroit. Grandmont Rosedale Development Corporation teamed up with developers Cinnaire Solutions to renovate Grandmont Rosedale Park Collective II, creating new affordable housing.
“This groundbreaking ceremony marks a significant milestone in our collective vision for a more inclusive and vibrant community,” said Michael Randall, GRDC’s Executive Director. “This development will not only provide safe and affordable homes for individuals and families, but it will also serve as a catalyst to enhance the quality of life for the Minock Park neighborhood and overall Grandmont Rosedale community.”
The apartments are in the growing area of Grandmont Rosedale, with easy access to shops, schools, and transit options. The renovated buildings will feature 35 units reserved for households earning at or below 60 percent of the area median income. That means rent for a one-bedroom apartment would start at $838 per month. Two units will be reserved for residents earning no more than 50% AMI, which will translate to monthly rent of $667 per month for a one-bedroom apartment. A two-bedroom apartment will rent for $1036 per month.
The affordability of all the apartments will be guaranteed for at least the next 30 years.
“Affordable housing also can be high quality housing and this great project is another example of that,” said Detroit Mayor Mike Duggan. “With programs like the Strategic Neighborhood Fund, we can work with developers to not only restore vacant buildings and beautify neighborhoods but do so in a way that is affordable to all Detroiters.”
“For the past 30 years, Cinnaire's purpose has been around investing in people and places to transform communities,” said Mark McDaniel, Cinnaire President and CEO. “We believe that potential means nothing without action behind it, and we are proud of the team that came together to bring the potential of Grandmont Rosedale to life. We are grateful for our partners at GRDC, Ethos Development Group, O'Brien Construction, the City of Detroit, MSHDA and members of the surrounding community for their commitment to the vision that will result in much needed affordable housing for Detroiters."
The $9.7 million development was made possible by $1 million in loans from the Strategic Neighborhood Fund. Cinnaire Equity also provided a $4.6 million investment, and Grandmont Rosedale Development Corporation provided a $215,000 sponsor note. The development also received approximately $1 million in HUD HOME grants and $351,000 in ARPA dollars from the City of Detroit Housing and Revitalization Department.
“We are so excited to help bring this project to life in the Grandmont Rosedale community.” said Julie Schneider, director of the city’s Housing and Revitalization Department. “One of HRD’s primary goals is to make sure every neighborhood in this city offers affordable housing for residents of all income levels. This project will help fulfill that mission in Grandmont Rosedale.”
“MSHDA is proud to provide financial resources to this exciting development that will combine affordable housing, historic preservation and neighborhood revitalization,” MSHDA Executive Director Amy Hovey said. “Grandmont Rosedale Park Collective II will be the first Low-Income Housing Tax Credit project for this area and reflects our commitment to Detroit and the Minock Park neighborhood within the Rosedale Park Local Historic District.”
The renovation of the property will include new HVAC and electrical systems, windows, kitchen remodeling, improved roofing, flooring (replacement or refinishing), and much more. The project also includes the creation of two garden level apartments.
“The redevelopment of these units will help as we continue to refresh this very vibrant and historic neighborhood,” said City Council President Pro Tem James Tate. “I have lived in Grandmont-Rosedale most of my life and have great childhood memories. Creating opportunities for families to thrive is important to our community and this partnership with the GRDC helps provide deeply affordable housing for both seniors looking to downsize but stay in the neighborhood as well as young families who desire to raise their children in a safe and welcoming environment.”
“We are grateful to be able to help enrich the lives of residents in the Grandmont Rosedale Neighborhood,” said Liliana Gonzalez, development manager for Cinnaire Solutions. “We continue to learn that the best development is place-based development - and this work is too hard to do alone, which makes a partner like GRDC all the more appreciated.”
“As we face a housing crisis around the country and here in the state of Michigan, the West Outer Drive Apartments will help address the critical need and increase access to affordable housing for our residents,” said State Senator Mary Cavanagh (D-Redford Twp.) “I’m grateful to the partners who came together to develop this project in a community with an immense potential for growth.”
72 projects across 10 SNF neighborhoods
Since 2018, The Strategic Neighborhood Fund (SNF) has invested $118.5 million in 72 unique projects in all 10 SNF neighborhoods. This includes parks, streetscape overhauls, single-family housing stabilization and commercial corridor revitalization. The fund also works hand-in-hand with other City initiatives such as Motor City Match to amplify its impact on communities across the city of Detroit.
“The Strategic Neighborhood Fund is committed to supporting equitable development projects in Detroit,” said Mike Vieregge, senior vice president of Invest Detroit. “We focus on projects that benefit all Detroiters, like providing affordable housing options in neighborhoods, spurring business creation, and creating employment within residents’ own communities. SNF is proving to be a catalytic tool for creating neighborhoods that residents live and thrive in.”
The Strategic Neighborhood Fund is a $150 million initiative launched in 2016 by Mayor Duggan and Invest Detroit with a focus on leveraging investments in four keys areas: improving parks, streetscapes, commercial corridors and single-family housing. All along the way, the plans are guided by resident input, empowering them to decide the future of their neighborhoods. The fund was piloted with a $42 million investment in three initial neighborhood areas: Livernois/McNichols, Southwest/Vernor and Islandview/Greater Villages. Two years later, the SNF initiative was expanded to seven more areas and funded by an investment of $5 million each from seven corporations: American Axle, Blue Cross Blue Shield of Michigan, Chemical Bank, Fifth Third, Flagstar Bank, Huntington, and Penske. Chemical and Huntington have since merged. American Axle is the corporate partner in Campau/Banglatown.
About Invest Detroit
Invest Detroit is a mission-driven nonprofit lender, investor, and partner that supports business and real estate projects that will ignite economic growth in Detroit and the region. Their goal is to increase density and job opportunities in a way that is strategic and inclusive. Learn more at www.InvestDetroit.com.
Cinnaire, the parent company of Cinnaire Solutions, is a non-profit financial partner that supports affordable housing developments along with community and economic revitalization initiatives through creative investments, loans and real estate development services. Since 1993, Cinnaire has invested $4.9 billion to support the development of 863 housing communities in 10 states, providing 53,146 affordable apartment homes for more than 114,000 individuals and families and has provided community development loans to support the creation/retention of more than 4.7 million square feet of commercial, mixed-use, and community space. Cinnaire is a cooperate owner in CPC Mortgage Company, a national mortgage lending company specializing in Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) finance products. In its mission to change lives and transform neighborhoods into thriving communities, Cinnaire has helped to create or retain over 80,000 jobs and spur $9.3 billion in economic impact. https://cinnaire.com.
About Grandmont Rosedale Development Corporation
Grandmont Rosedale is a community of opportunity that draws a diverse array of people from across the region to shop, eat, start a business, buy a home, and build community. The Grandmont Rosedale Development Corporation (GRDC) is a non-profit, community-based organization dedicated to preserving and revitalizing the Grandmont Rosedale communities of northwest Detroit. GRDC has organized a wide range of community improvement programs designed to help the community prosper as a place to live, work and play.
To learn more about Grandmont Rosedale Development Corporation, visit https://grandmontrosedale.com.