Frequently Asked Questions

What is the Detroit Housing for the Future Fund?

The Detroit Housing for the Future Fund (DHFF) is a new fund comprised of private investment that will be invested into affordable housing development and preservation in Detroit.  The DHFF is managed by Local Initiatives Support Corporation and was created in partnership with the City of Detroit as part of the Affordable Housing Leverage Fund initiative.  The DHFF is designed to deploy private grant and low interest loan capital to compliment and leverage public investment through the City of Detroit and Michigan State Housing Development Authority as well as tax credits and other existing affordable housing finance tools.

Why was the Detroit Housing for the Future Fund created?

The preservation and creation of affordable housing is a cornerstone of the City of Detroit’s growth strategy. The City has set a goal to preserve 10,000 units of affordable housing and produce 2,000 new units of affordable housing by 2023. To meet this goal, new financing tools are needed to fill gaps not addressed by public affordable housing tools and to leverage additional forms of affordable housing investment.  As part of the Affordable Housing Leverage Fund strategy, the DHFF was designed to increase the availability of affordable housing capital and bring greater coordination and efficiency across private investors, the City of Detroit, and the Michigan State Housing Development Authority.

What types of developers are eligible to apply?

Detroit Housing for the Future Fund is available to any type of developer/owner that demonstrates the ability to deliver and operate high quality affordable housing opportunities for Detroiters, including both non-profit and for-profit developers.

What types of projects are eligible to apply to DHFF?

There are no restrictions as to the type of projects eligible for the Detroit Housing for the Future Fund as long as they include a portion of units that will be regulated as affordable housing. Common project types are expected to include:

  • New multifamily housing developments (mixed-income and 100% affordable)

  • Preservation of existing regulated affordable properties

  • Preservation of naturally occurring affordable housing properties

  • Development of new permanent supportive housing

What types of funding are available through the Detroit Housing for the Future Fund?

Submissions to the Detroit Housing for the Future Fund will be considered for the following types of investment:

  1. Debt for Preservation/NOAH (Senior and subordinate)

  2. Preferred Equity

  3. Recoverable Grants for Capital Needs Assessments/Green Capital Needs Assessments

  4. Predevelopment Grants for Developers of Color

In addition, Capital Needs Assessment Recoverable Grants and Predevelopment Grants for Developers of Color are available on a rolling basis and can be accessed through a streamlined application process.

How is “Affordable Housing” defined for purposes of the Detroit Housing for the Future Fund?

Detroit Housing for the Future Fund will primarily be designed to support the preservation and development of rental units that serve households below 60% of the Area Median Income. Some funding sources have additional affordability requirements, including deeper affordability targeting. Recognizing that housing cost burdens are a particularly acute challenge for Detroit residents at the lower end of the income spectrum, DHFF will seek to invest in units that are accessible to households below 50% of AMI as well as permanent supportive housing. In a mixed income project, applicant will need to demonstrate sufficient sources to cover any units rented at higher rates.

Debt investments require that a minimum of 50% of the units must be at or below 80% AMI along with the remaining balance of units at or below 120% AMI.

Preferred Equity investments require that 5% of the units are at or below 50% AMI and 15% of the units at or below 60% AMI.  Overall 50% of the units should be 80% AMI or below.

Deeper affordability is strongly encouraged for both products. 

What are the funding sources for the Detroit Housing for the Future Fund?

The Detroit Housing for the Future Fund is derived from corporate and philanthropic investment in the form of grant investment and low-cost lending. As of September 2020, a substantial pool of financial resources has been committed to this portion of the fund from nine corporate partners. 

How does a developer/property owner apply for funding through the Detroit Housing for the Future Fund?

Stage 1: An Application portal will be open year-round on a rolling basis.  Applicants will first submit a Pre-Application through the portal and are required to participate in a mandatory meeting with the DHFF Team.  

Stage 2: After acceptable conversations with the DHFF team, an applicant is granted access to full application through the Detroit Housing for the Future Fund portal.  Applicant submits full application and required documentation.

Stage 3: Detroit Housing for the Future Fund conducts threshold review and scoring of applications.  If application is not complete and/or denied DHFF team will follow up with Applicant.

Stage 4: DHFF submits intake package to internal committee review.  Upon approval to move forward a Project review Committee with LISC, City of Detroit and MSHDA is held.  Upon approval, letter of interest provided.

Stage 5: DHFF works with applicant to obtain necessary documents required to close and fund the loan.  Commitment letter sent after approval.  

Stage 6: DHFF schedules the closing with the applicant.  Post-closing, DHFF Asset manager monitors the performance of the loan. 

How does a developer/property owner find out additional information about the Detroit Housing for the Future Fund?

Developers and property owners interested learning more about LISC and the Detroit Housing for the Future Fund should visit the following links:

In addition questions can be forwarded to Brandon Ivory, Loan Officer, at bivory@lisc.org or by calling 313.265.2890.