Detroit Spring 2020: COVID-19 | Affordable Housing Financing | Equitable Development Initiative | Stay Midtown

Through the work of mission-driven organizations and partners, Detroit’s revitalization continues. While ongoing development is critical to increasing the city’s density, we must remain vigilant in ensuring such development is equitable. With the summer behind us, we enter the remainder of the year energized and committed to working with our partners and local communities to address barriers to opportunity. We look forward to sharing updates along that journey on our social media platforms, and in the meantime, invite you to read more below about our recent accomplishments.

Throughout Detroit, we know that we are not alone in expanding shared prosperity across the city. To highlight our valued partners – organizations, developers, city officials, and community members – and their extraordinary work, we are launching a new video series entitled Partnerships in Detroit’s Revitalization.

Kicking off the series are Capital Impact’s President and CEO Ellis Carr and Woodborn Partners’ Managing Partner Clifford Brown. Hear them as they describe how partnerships with real estate developers and others are moving Detroit forward.

Across the state, we are investing in vital services that communities need and deserve, including these two high impact projects supporting affordable housing and education.

Coogan Terrace

Coogan Terrace, a 199-unit public housing apartment building in Melvindale, Michigan, serves individuals and families experiencing economic hardship — primarily older adults and a smaller group of persons with disabilities. While the property is already 90 percent occupied, it is in dire need of updates in order to improve resident safety and energy efficiency.

Capital Impact provided a $1.2 million loan — partially sourced from The CDFI Fund’s Capital Magnet Fund— to support these renovations and convert Coogan Terrace to the Housing Choice Voucher program (also known as Section 8 housing) through a Rental Assistance Demonstration conversion with the U.S. Department of Housing and Urban Development. Fifty percent of the units will become income and rent restricted at or below 50 percent of the Area Median Income (AMI), and the other half will become income and rent restricted at or below 60 percent of AMI.

Detroit Edison Public School Academy

Detroit Edison Public School Academy (DEPSA) is a nonprofit corporation founded in 1998. Ninety-eight percent of the students are African American, and the school consistently outperforms its K-12 peers at the district level, and K-8 peers across the state. Eighty-two percent of its students go to college, versus 68 percent for the state of Michigan.

In 2012, DEPSA constructed a new 58,000-square-foot high school facility, and was looking for ways to bring down annual costs. We supported this effort by refinancing an $11 million loan using the Community Development Financial Institution (CDFI) Bond Guarantee Program.

This November, we will begin accepting applications for the Winter/Spring 2020 cohort of our Equitable Development Initiative in Detroit. Applications will be accepted through December 2; view our application starting November 1 and check out our website to find out more information about the training schedule. 

►Apply for EDI Detroit (beginning Friday, November 1)

In June, we wrapped up the second round of training as part of our Detroit Equitable Development Initiative. The program combines our local knowledge, partnerships, and key strengths—including program design, training, mentorship, and project financing—to support minority developers who are committed to growing their careers and revitalizing Detroit.

To date, Capital Impact has trained 47 individuals through the program and provided predevelopment financing to two projects in Detroit’s Avenue of Fashion and Virginia Park neighborhoods.

Meet our participants!

►Meet Our 2018 EDI Cohort

►Meet Our 2019 EDI Cohort

►Increased Density along Corktown’s Michigan Avenue 

Increasing density and expanding affordable housing options for Detroit residents is critical as the city’s revitalization continues. A number of media outlets turned out at the ribbon cutting for “The Corner” on the former Tiger Stadium site. This project creates 111 new residential units — with 20 percent of the units serving residents earning 80 percent of the Area Median Income, as well as 25,00 sq. ft. of retail space.

►The Power of Partnerships

CDFIs have played a critical role in the revitalization of Detroit for more than two decades now, bringing a mission-driven approach and unique resources to the market. In order to have a broader impact throughout communities, however, it is vital to have mission-aligned partners— like JPMorgan Chase — who can help CDFIs generate the capital needed to make big investments for Detroiters. 

►Michigan Needs Inclusive Food Systems

When it comes to building healthy communities, ensuring access to quality and affordable food must be at the top of the priority list. Michigan Good Food Fund’s Oliva Rebanal stresses the importance of ensuring communities have access to inclusive food systems in her editorial in The Detroit News.

Jarrett Sanders, Detroit Real Estate Program Specialist

Jarrett Sanders joined Capital Impact Partners in July 2019 to manage Capital Impact’s Equitable Development Initiative in Detroit, which provides training, mentorship and capital to real estate developers of color.

Prior to Capital Impact, Jarrett worked with the Detroit Land Bank Authority, where he served as Property Asset Coordinator. Before that, he was the Community Revitalization and Development Coordinator for the Community Housing Network, where he assisted in securing more than $50 million in Low Income Housing Tax Credits. He is active in the Detroit and Pontiac communities and was recognized as a Park Champion by the Friends of Pontiac Parks and an Agent of Change by the Urban Land Institute.

Did you know?
As a Detroit native, Jarrett supports Detroit entrepreneurs and makes a point to visit new restaurants and pop-up shops and attend local events as often as he can.

Favorite things to see and do in Detroit?
Photography, fishing and golfing are some of Jarrett’s favorite leisure activities. He also finds himself steadily involved in community service activities, such as reading to kindergarten classes and serving on nonprofit boards.
 

Nicholas Pohl, Great Lakes Region Business Development Officer

Capital Impact is excited to announce it will be expanding its lending efforts from Detroit to the Great Lakes region. Nicholas—formerly the Senior Originations Loan Officer in Detroit—will be transitioning to business development in this region, utilizing successes and learnings from Capital Impact’s Detroit work. He will additionally be leveraging existing partnerships to enter into these new markets.

The lending focus in this region will include health care, education, inclusive food systems, affordable housing and mixed-use/mixed-income projects with a corridor-based revitalization component.

Nicholas has also been selected to participate in thedetroit Regional Chamber’s Leadership Detroit program, a 10-month leadership program designed to challenge emerging and existing community leaders from Southeast Michigan to bring about positive change. He will join more than 70 executives from business, organized labor, government, education, media, civic groups, health services and community organizations—many of which are mission-aligned with Capital Impact.

This is an incredible opportunity, and we wish him the best of luck in the program!