DETROIT (AP) — Banks, philanthropies and nonprofits are working with Detroit to direct $75 million in private money for affordable housing in the city.
The Detroit Housing for the Future Fund was announced Tuesday with $48 million in initial commitments, including a combined $25 million from JPMorgan Chase and the Kresge Foundation.
The fund provides easier access to grants and loans to developers trying to fill the gap between redevelopment costs and the income they will receive from tenants.
JPMorgan Chase is committing $15 million to fund grants and loans. The Troy, Michigan-based Kresge Foundation is guaranteeing $10 million.
The fund is the privately funded part of Detroit’s affordable housing initiative announced in 2018. The city has spent more than $12 million to develop 424 units of affordable housing.
Mayor Mike Duggan’s administration wants to preserve 10,000 units of existing affordable housing and develop 2,000 units of new affordable housing.
The fund is a “historic commitment by the city and its partners to make sure we are building a city where Detroiters of all income levels can afford to live in any neighborhood they wish,” Duggan said.
The fund will be managed by the Local Initiatives Support Corp. (LISC) network, a nonprofit community development financial institution.
“The affordable housing shortage is one of the biggest issues facing our city right now, and the time to address it is now,” said Tahirih Ziegler, LISC Detroit executive director.