8330 E. Jefferson
Detroit, MI 48214
8330 On the River, three miles from downtown Detroit, is located in a "resurgent" neighborhood. POAH sought to avoid the loss of affordable homes for low-income seniors to condo conversion in an area surrounded by new condo construction through this acquisition. POAH recently updated the building envelope to provide better insulation and eliminate leaks.
• Michigan State Housing Development Authority (MSHDA)
• US Department of Housing and Urban Development (HUD)
• Centerline Capital Group
The Preservation Challenge
8330 On the River is a high-rise building located on the banks of the Detroit River, and includes 280 apartments affordable to low-income elderly residents. 8330 On the River is surrounded by similar buildings which were built as condominiums. It was against this backdrop that POAH and the Michigan State Housing Development Authority (MSHDA) pursued the opportunity to maintain affordability when 8330 On the River became available in 2002.
The building was originally offered in a portfolio with five others, all nearing expiration of their Section 236 rent restrictions. (Section 236 is a HUD program from the 1970's which provided mortgage interest rate subsidies to private developers of low-income housing for a fixed period of time. Those mortgages were reaching "paid in full' status and eligibility for prepayment, leaving owners free to sell their properties on the open market.) The first building sold from this Michigan portfolio immediately converted to market rents.
POAH was the first organization to apply to MSHDA for funds under its innovative '236 Preservation Program', and received financing to purchase 8330 On the River as well as 920 On the Park in nearby Troy. The tax exempt loan from MSHDA and retention of the 236 interest reduction payment subsidy through a decoupling with HUD facilitated POAH’s acquisition of the property and helped ensure that the apartments at 8330 On The River would remain affordable to seniors for at least 35 more years.
Other funding for the property in 2003 came from syndicating Low Income Housing Tax Credits with Centerline Capital Group, which allowed for repairs and renovations including shoring up the seawall along the water as well as restoring the riverside walkway and terrace for the use and enjoyment of the residents. As part of the 2003 and 2004 renovations, apartments received new windows and sliding doors as well as a refreshing coat of paint. Most importantly, residents received assurances that their homes would be available and affordable for years to come. POAH undertook additional renovations at 8330 On the River in 2010 and 2011 thanks to stimulus funds provided by MSHDA which allowed for a major overhaul of the building exterior. What started as an effort to repair leaky masonry ended up with significant $8M renovation and a whole new look for the building. The 18-story building envelope was clad with an insulated metal panel system that will significantly improve the building’s thermal performance.