The city worked with the owners of an apartment building to maintain lower rents so longtime residents would not be displaced after renovations.
"The City of Detroit is giving a $1.4-million tax subsidy to an apartment building owner to ensure special rent deals for about 45 low- and moderate-income tenants, who might otherwise be forced to leave the 18-story tower when it goes upscale," reports JC Reindl.
The Elmwood Club Plaza Apartments, a senior housing project funded by the Department of Housing and Urban Development, was built in the 1970s. Several years ago, the building’s units switched to market-rate rental apartments, and planned renovations have left longtime residents facing the possibility of huge rent increases.
A tax abatement will freeze property taxes at current rates and keep rents lower for current residents. "The arrangement at Elmwood Club is one result of Detroit officials' policy push in recent years to compel private developers to set aside portions of newly built or newly renovated apartment buildings — typically 20% — for tenants who can only afford cheaper rents," notes Reindl.
FULL STORY: Detroit uses landlord subsidy to save renters from gentrification
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