Mayor Mary Sheffield just relaunched the Detroit Housing for the Future Fund with new investors and a bold vision for the city’s working families.
Detroit’s affordable housing movement just got a major boost.
During her State of the City address, Mayor Mary Sheffield announced the return of the Detroit Housing for the Future Fund (DHFF) — a powerful investment vehicle administered by Local Initiatives Support Corporation (LISC) Detroit that has already proven it can move the needle.
Phase 1 wasn’t just talk. The fund grew to more than $58 million, financed nearly 1,000 units of affordable housing, and leveraged an additional $146 million in total development costs. Now, DHFF 2.0 is ready to scale that impact even further.
“Affordable housing is foundational to Detroit’s future,” said Mayor Sheffield. “As our city grows, we must ensure longtime residents and working families can continue to live and thrive here.”
Who’s writing the checks
The fund has already locked in major early commitments for Phase 2:
- Flagstar Bank renewed its founding investor commitment with $1 million
- Ally Financial came in as a new partner with $1 million
- The Kresge Foundation renewed its support with a $10 million guarantee
LISC President and CEO Michael Pugh called the initiative a model for what’s possible when private capital, public investment, and community partners work together. “The DHFF is an important step forward in increasing access to affordable, stable housing,” he said.
What phase 1 built
The first round of funding backed projects that are now home to Detroit families:
The Ribbon: An East Warren development with 18 apartments and community space, with units affordable at 80% of Area Median Income and four units below 60% AMI.
Merrill Place II: A $12 million Virginia Park development featuring 27 newly constructed affordable homes built with long-term sustainability in mind.
8330 on the River: A 280-unit senior housing property where DHFF financing helped preserve affordability for residents earning below 60% AMI.
Why this matters for Detroit
Rob Lockett, Executive Director of LISC Detroit, put it plainly: “Phase 1 was fully allocated within three years. Demand was strong, and the results speak for themselves.”
DHFF 2.0 expands on that foundation — offering low-interest construction and rehabilitation loans, gap financing, and targeted grants designed to support emerging Detroit-based developers who might otherwise get locked out of the capital stack.
Housing is a central pillar of Mayor Sheffield’s administration, and DHFF 2.0 is designed to be the financial engine that makes that vision real. LISC is actively seeking additional banks, corporations, foundations, and mission-aligned investors to join the fund.
“As Detroit’s economy strengthens, we must ensure that growth includes neighborhoods of opportunity,” Sheffield said. “DHFF 2.0 ensures that our housing strategy protects residents, strengthens neighborhoods, and keeps Detroit accessible for families at every income level.”