Detroit's affordable housing trust fund gets more money July 1, but new projects won't start right away

Detroit's affordable housing trust fund is receiving a funding increase, but city officials say residents should not expect an immediate wave of new construction.

Mayor Mary Sheffield signed an executive order in March directing all revenue from city commercial land sales into the fund. Increased funding officially becomes available July 1 through the city's new budget.

Housing officials are tempering expectations about what that date means in practice.

"We don't really see a dramatic unlocking or change just because a commitment is generally made many months before our project is ready to begin," said Rebecca Labov of the Detroit Housing and Revitalization Department.

Labov said the money will help the city plan for projects already in the pipeline and support future competitive funding rounds.

The fund is designed to serve Detroiters with the greatest housing needs — specifically those in the lowest income bracket.

"In practice, 100 percent of the affordable housing units that we support through this fund are at that 30 percent level. So, it is a tool for us to develop affordable housing for folks of the lowest income band," Labov said.

The city points to completed or ongoing projects as examples of what the fund supports, including La Joya Gardens, Brush Watson, the St. Matthew's Redevelopment and Hubbard Farms in southwest Detroit.

Over the next year, officials expect work to continue or wrap up at Orchestra Tower, 900 Tuscola, Wesson Avenue Apartments and The Hive near Eastern Market.

Site selection is also part of the equation, Labov said.

"We look to see if they are situated in places where residents are going to have access to transportation and to amenities and to employment centers," she said.

For Detroiters looking for affordable housing now, Labov said units are already available and some developments begin pre-leasing before construction is finished.

"The best resource that we have to direct residents to is Detroit Home Connect and there are existing affordable developments that you will see through that website," she said.

City officials describe the funding boost not as a switch that starts new construction immediately, but as a way to grow the local funding base and keep affordable housing projects moving forward.