ClairmountApartments

Forty-Eight Workforce Homes

Fig. A · Site

Virginia Park · Detroit, MI

9 DLBA parcels40,909 SFR3 → R4

Site Selection

22,819

DLBA parcels

Matched to current parcel polygons

9,830

Sites

Parcels grouped across alleys (≤ 30 ft gaps)

922

≥ 0.5 acres

Smallest footprint that can hold 40 homes

257

Inside a TMFHA

Required for City HRD funds

10

Finalists

Top composite scores, 78.0–83.3

Bars drawn to scale

Composite score weightsWeight

Basis boost (QCT/DDA)15.8

Zoning by right15.8

Rent burden10.5

Poverty10.5

TMFHA10.5

Unit capacity10.5

Transit access10.5

Assemblage simplicity10.5

Acquisition cost5.3

Percentile rank among 257 sites · 18-run reweighting kept ranks 1–8 stable

Investment Thesis

Ranked 5th of 10 finalists · 81.1 · all within 5.3 pts

1967

Rebellion began at 12th St & Clairmount

1970

Residents won approval of their own plan

~$9M

Streetscape + Strategic Neighborhood Fund

$2.5B

Future of Health next door

Who lives hereCoStar · 1-mile radius

$36,870

Median household income

46% of metro median

$922

Affordable rent / mo

30% of income

50%

New market two-bed

Share of income

2.1

Avg household size

Persons

Comp supply by unit type746 units · 14 comps

67%

10%

23%

One-beds 67%Two-beds 10%Studios 23%

What we build48 homes

60/40

One-beds / two-beds

40%

Two-beds vs 10% in local stock

Four times the local share

Income ladder48 homes

12

14

22

DeepestPBV + 30% AMI50% AMIThe median neighbor60% AMIFrontline workers, ~$46–57K

Henry Ford ~1 mile: demand driver, not a tenant pipeline

Virginia Park ranked fifth, within three points of first. We picked it for the narrative: the site sits on Clairmount, the street where the 1967 Rebellion began; residents have fought for rebuilding since the 1960s; public money is flowing now; and Henry Ford’s Future of Health campus is the anchor. Pitch line: rebuild where ’67 began, with homes for the people who keep the neighborhood and the hospital running. Sources: Michigan Chronicle via Word in Black; Reuther Library; City of Detroit Future of Health; Crain’s Detroit. Note: tract 5327 is not one of the three formal Future of Health impact tracts (5224, 5236, 5339). QCT check (HUD lists pulled Oct 30, 2026): tract 5327.00 is a QCT on both the 2026 and the 2027 lists (2027 effective Jan 1, 2027), so the 30% boost holds through our MSHDA round. Talk track (~45 s): Within a mile of this site, the median household earns about thirty-seven thousand dollars, under half the metro median. That's above the incomes housing assistance is built around, and well below what a new apartment costs: a new two-bed at market would take half their income. So we built a ladder. Twelve homes for the lowest incomes, with vouchers. Fourteen at fifty percent AMI, priced for the median neighbor. Twenty-two at sixty percent, for the nurses' aides, techs and service workers a mile away at Henry Ford. And forty percent of the homes are two-beds, because the existing stock is two-thirds one-beds and barely ten percent two-beds, while the households here are single parents and roommates who need the second room. We stopped at 60/40 because every step past it trades four or five family homes for one extra unit.

Project Overview

Aerial rendering of the building on Clairmount with parking off the alley

Aerial · Clairmount at Byron

0.996

FAR used

Of 1.0 · 144 sf to spare

0

DLBA Board votes

Nine parcels, at the limit

01

Today’s R3 fits ~29 homes

Below the 40-home floor

02

R4 allows 40,909 sf; we use 40,765

48 homes on one zoning lot

03

Nine parcels, no DLBA Board vote

Clairmount alone still fits 40

R3 by right fits only about 29 homes. Twelve parcels would have needed a DLBA Board vote (about 4 months) and grown the soft-money gap to about $3.2M at 56 units, because the credit cap binds either way. Nine parcels plus one rezoning is the cleaner path. The 2025 Let's Build More Housing amendment keeps R3's multifamily FAR at 0.70, so the rezoning is still needed for 48 homes. Zoning lot: the petition covers all nine parcels, including 1404 Taylor across the public alley, treated as one zoning lot under common ownership; to confirm with the City under Chapter 50. If Taylor were excluded, Clairmount alone (32,232 sf) at 1.0 FAR fits 40 homes with a 1,000 sf community room, still at the case floor. Fallback if R4 is denied: move to the next finalist with the same program and apply one MSHDA round later.

Zoning & Site Assemblage

Nine DLBA parcels outlined in red: eight on Clairmount holding the building, yard and alley parking, and 1404 Taylor holding 26 spaces

Clairmount St Public alley Taylor St 9 DLBA parcels · one zoning lot

R3 → R4

Planning Commission + Council · ~4–6 mo

9 parcels

40,909 sf · one zoning lot · no DLBA Board vote

1.0 FAR

Allows 40,909 sf; we use 40,765 · R3 fits ~29 homes

Front setback · 20 ftPASS

Plan consistencyPASS

Parking · 50 vs 36 requiredPASS

Alley head-in · 24 spacesCONFIRM

One discretionary step: the R3 to R4 rezoning through City Planning Commission and Council, about 4 to 6 months, run in parallel with design and the HRD application. Zoning source: Detroit City Code Chapter 50 as amended by the 2025 Let's Build More Housing text amendment (CPC staff report, Oct 2, 2025): R3 multifamily FAR stays 0.70, and parking drops to 0.75 spaces per unit (Sec. 50-14-34), so our 50 spaces clear it. We rezone before applying to MSHDA, which also earns 3 QAP points for proper zoning (C.8) and opens 3 more for site plan approval (C.9). R4 standards confirmed in Chapter 50, Sec. 50-13-5 (Municode, version Oct 9, 2025, read Oct 30, 2026): multifamily FAR 1.0; no height cap; minimum lot 7,000 sf and 70 ft wide, with no per-unit lot area minimum; front setback 20 ft, rear 30 ft, side (building length + 2 x height) / 15, about 9 ft at each end. Coverage is set by a 0.10 recreation-space ratio (Sec. 50-13-239): about 4,080 sf of yard, at least 25 ft wide, in a side or rear setback, not parking. The west-end yard carries most of it; if the survey shows a shortfall, part of the 1404 Taylor lot becomes yard and parking stays above the 36-space minimum. FAR margin can grow: Sec. 50-13-237(4) excludes floor area used only for non-commercial recreation, up to 15% of the building. Confirm the rear setback against the survey. The petition covers all nine parcels as one zoning lot; if 1404 Taylor were excluded, Clairmount alone fits 40 homes. If rezoning fails, R3 by right allows only about 29 homes, so the fallback is the next finalist site, one MSHDA round later. Parcel lines from City of Detroit Parcels (Current), Oct 2026. Concept only: setbacks, alley head-in parking and the 1404 Taylor lot layout need City confirmation. No bedrooms on the east (Lodge freeway) end. Floor 1 is 14,471 GSF (9,300 residential, 3,000 amenity, 2,171 core); floors 2 and 3 are smaller. All nine parcels form one zoning lot for FAR.

Program & Rents

Market $1,300

−64%$467

−34%$860

−21%$1,025

−23%$1,000

Market $1,550

−64%$553

−34%$1,025

−23%$1,200

−19%$1,257

30% AMI50% AMI60% AMIPBVOne-bed · 600 sf

30% AMI50% AMI60% AMIPBVTwo-bed · 750 sf

29 + 19

One-beds 600 sf + two-beds 750 sf

3,000 sf community floor

49.6%

Average AMI

54.2% at or below 50% AMI

14.6%

Project-based vouchers

7 homes at 2026 FMR · under the 15% cap

Frontline Workforce Homes is a mixed workforce building, not one income. Twelve homes (25%) serve the lowest-income households: 7 with project-based vouchers, where rent is 30% of income, and 5 at 30% AMI for incomes up to about $24K-$28K. The $31,970 tract median sits just above the 30% AMI limit ($31,440 for four), so the 12 voucher and 30% homes are the ones current neighbors can afford at 30% of income. Fourteen homes at 50% AMI serve incomes up to $39K-$47K. Twenty-two homes at 60% AMI, priced at the median of nearby affordable comps ($1,025 / $1,200), fit hospital and service workers earning about $46K-$57K. Leasing cannot be limited to hospital employees; Henry Ford is a demand driver, not a tenant pipeline. Vouchers: hypothetical letter-of-interest narrative for 7 Detroit Housing Commission PBVs, 20-year HAP at the 2026 FMR; no contact made. Rents use FY2026 limits and the July 2026 MSHDA utility allowance.

Budget & Operations

Development usesAmount

Hard costs$11,988,690

Developer fee$1,800,000

Financing$1,719,182

Soft costs$1,515,129

Reserves$252,647

Acquisition$31,682

Total development cost$17.31M

Stabilized operationsAnnual

Gross potential income$575,736

Vacancy7%($40,302)

Effective gross income$535,434

Operating expenses$7,387 / home($354,597)

Net operating incomeStabilized$180,837

$255/GSF hard cost · 8 lease-up months carried

Capital Stack

LIHTC equity

$13.86M

80.1%

Permanent loan

$2.08M

12.0%

Deferred fee

$293,000

1.7%

HRD soft loan

$1,077,718

6.2% · closes the gap

Credits and debtValueRule

Eligible basis$16,173,501Excludes land, reserves, fees and financing costs

Credit the basis supports$1,892,300Basis × 130% × 9%

Annual credit requested$1,650,000MSHDA Open Urban max

Tax-credit equity$13,858,61410 yrs × 99.99% × $0.84

Permanent loan$2,078,0001.20x · 6.50% · 35-yr

HRD NOFA soft loan$1,077,7181% accruing · 30-yr · 50% residual receipts

Cash Flow

DSCR · Years 2–15- - 1.00x breakeven · axis from 0.95x

0.95

1.05

1.10

1.15

1.20

1.25

1.00

1.20x

1.19x

1.18x

1.17x

1.16x

1.15x

1.14x

Y2Y3Y4Y5Y6Y7Y8Y9Y10Y11Y12Y13Y14Y15

YearNOIDSCRDeferred fee bal.

1$35,6930.71x$293,000

2$180,8371.20x$262,814

5$178,7381.19x$176,125

10$175,4971.17x$47,559

15$171,2681.14x$0

Requirements & Risks

Stress testGapFilled by

Equity at $0.80$660KAHP + LISC

No 30% basis boost$1.63MRemote: QCT ’26 & ’27

Hard cost +10%$1.47MSmaller amenity floor, AHP

No vouchers$613KAHP / larger HRD

Opex +3%$145KAHP; Yr 15 holds to +4%

MSHDA 2026–27 self-scoreClaimed / max

75/ 122Urban, non-PSH

A · Urban opportunity32 / 44

C · Development characteristics39 / 62

D + F · Team, cost efficiency4 / 16

Upside: rezone first, co-GP, job growth+28

16 / 16 case tests met Site ownershipContiguityZoning (R4 path)Units (48)LIHTC shareIncome averagingDeep affordabilityVouchers (14.6%)Unit sizesCore / amenityMarket testHard costCredit ≤ needDebt termsSoft sourceMassing

Sixteen case tests are met. Orange dots: zoning depends on the R4 rezoning, and vouchers sit just under the 15% cap with a hypothetical letter-of-interest narrative (Detroit Housing Commission PBV round, 20-year HAP; no contact made). Self-score is against the MSHDA 2026-2027 Scoring Criteria; full line items are in the QAP SELF-SCORE tab. We lose points on zoning and site plan (6, recovered by rezoning before we apply), GP experience (7, GLNP has none until paired with an experienced co-GP), job growth (4, not yet documented) and voucher points (2, 7 vouchers fall just short of 15%). Strengths: place-based developer (GLNP, 5), transit and amenities (23), deep targeting, PILOT, 5 Type A accessible homes. Stress gaps are full-model re-runs from the SENSITIVITY tab (each input changed on its home tab and the workbook recalculated). Services letters of interest are hypothetical, like the voucher narrative. Realistic target with the fixes: 88 to 92 points. Per the no-contact rule, City, DLBA and DHC confirmations are assumptions, not verified answers.

The Ask

Clairmount at Byron

NEXT STEPS

DLBA purchase agreement on the 9-parcel sale, no Board vote needed
R3 → R4 rezoning first, then the MSHDA October 2027 round at the $1.65M cap
HRD NOFA and DHC voucher applications in parallel; AHP as backstop
GLNP as managing GP (51%) and place-based developer; VJT as co-developer and guarantor

48

Homes at an average 49.6% AMI

$17.31M

Total development cost

$1,650,000

Annual 9% LIHTC request

$1,077,718

Detroit HRD NOFA soft loan