|920 On The Park|
920 John R Road
Troy, MI 48083
920 On The Park was one of two Michigan purchases POAH made in 2004. In acquiring the properties, POAH used a forward-looking Michigan State Housing Development Authority (MSHDA) program which targets funds to assist nonprofit owners in preserving properties like this rather than allowing them to be sold on the open market.
• Michigan State Housing Development Authority (MSHDA)
• US Department of Housing and Urban Development (HUD)
The Preservation Challenge
POAH came to Michigan in 2004 to purchase two large elderly housing properties which were vulnerable to market sale at the expiration of their Section 236 mortgage subsidies. 920 On The Park in Troy--297 units of subsidized housing for low-income residents was one. 10% of Troy's population is elderly, and this property represents three-fifths of the city's entire stock of subsidized rental housing.
Located about 20 miles from downtown Detroit, Troy is an attractive suburban community. A national magazine recently named it one of the Top 25 cities in the country for its good schools, safe streets and low property taxes, all of which would likely make the 920 On the Park site attractive to a market developer.
In purchasing 920 On The Park to preserve its affordability, POAH was able to use a Michigan State Housing Development Authority (MSHDA) tax-exempt preservation loan fund which is earmarked 'to extend the affordability, viability and livability' of expiring Section 236 properties for a minimum of 35 years.
In the late 1960's and early 1970's, Section 236 of the National Housing Act provided mortgage interest rate subsidies and mortgage insurance to private developers of low-income housing for a fixed period of time. At the expiration of the note, owners were free to sell their properties. MSHDA had recently expanded its targeted preservation financing to ease acquisition of such deals by nonprofits. Using this timely program, the MSHDA-POAH collaboration preserved 577 units for low-income elders in greater Detroit, including the Troy site.