$7.5M from PNC Bank to help create, preserve affordable housing through Detroit Housing for the Future Fund
The LISC-managed Detroit Housing for the Future Fund launched with $48M in September.
Part of Mayor’s commitment to build “One Detroit, for All of Us.”
The fund helps close financing gap for developers building new or preserving existing affordable housing units in the city.
DETROIT – Mayor Mike Duggan and PNC Bank announced today the bank’s $7.5 million commitment to creating and preserving affordable housing across the city through a major investment in the Detroit Housing for the Future Fund (DHFF).
Announced by the mayor last year, the DHFF represents the largest single private commitment to affordable housing in the city’s history. The purpose of the DHFF is to direct private capital to support affordable housing developments in need of gap financing. Since the fund’s launch seven months ago three DHFF projects representing $31 million in total development with a DHFF investment of $7.8 million already have been announced, despite COVID-related and seasonal construction shutdowns.
So far, $48 million of the fund’s goal of $75 million has been raised.
“Development is happening in neighborhoods across the city, but it doesn’t mean much if the Detroiters who stuck with the city during the tough times can’t afford to stay and participate in its comeback,” said Mayor Duggan. “PNC Bank’s generous commitment helps ensure that all Detroiters, no matter their income, will have the opportunity to live in any neighborhood they choose.”
The Duggan administration has made affordable housing a top priority as it works to help Detroiters stay in their homes amid increasing rents. The administration set a goal of preserving 10,000 units of existing affordable housing and the development of 2,000 units of new affordable housing through multiple public and private housing initiatives including DHFF. As of today, more than 1,000 new affordable housing units have opened or are under construction in the city while nearly 7,000 existing affordable units either have had their affordable rents extended for another 15-30 years or are in the pipeline to have them extended.
“Providing critical capital to support the creation of affordable housing in Detroit reflects PNC’s long-term support of neighborhood revitalization, education, and economic development in the City,” said Ric DeVore, PNC regional president for Detroit and Southeast Michigan.