Detroit Relies On Virtual Property Appraisals

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The city of Detroit is using desktop appraisals to determine property values. Desktop appraisals involve looking at aerial photos of properties and information gathered from parcel maps, deeds and permits, in stead of going to look at it in person. They are a quicker way of keeping up with about 71,000 residential parcels that need to be valued each year. Up until 2017, 60 years had passed without Detroit finishing a comprehensive reappraisal of city property values. After playing catch up, the assessor’s office must keep current with a state requirement that 20 percent of properties be reassessed each year. Aerial technology aids the city in keeping up with the huge number of homes over about 140 square miles. The strategy has critics who say that aerial imagery can cause low-value property owners to be in over their heads when their properties are already over-assessed. A shortage of appraisers has contributed to the reliance on desktop appraisals.

Cities Rethink Parking Rules

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The city of Ann Arbor recently voted to remove all minimum off-street parking requirements. Detroit is reviewing its zoning code, possibly implementing new rules regarding how many parking spaces are needed for uses like housing, retail and industrial. Both examples are part of a growing trend in Michigan and around the U.S. as cities rethink their parking rules. Complying with Detroit’s parking requirements is a pain and poses a threat to business growth. Some Detroit-area businesses and organizations think the parking minimums are old-fashioned and block the development of vibrant neighborhoods. Others remain skeptical of entirely scrapping all parking minimums.

 

 

Downtown Detroit Receives Grant Monies for Parks and Real Estate Development

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Downtown Detroit parks can expect a facelift in the near future. The Downtown Detroit Partnership was recently awarded a $13.74 million-dollar grant by the Michigan Strategic Fund board. This grant is just one of 22 awarded. Metro Detroit’s awardees are the DDP, the city of Ecorse, the Wyandotte Downtown Development Authority, the city of Mount Clemens, and the East Dearborn Downtown Development Authority. Bedrock LLC and Karp and Associates will get some funds from DDP’s pot of grant money with the redevelopment of Gilbert’s Harvard Square Center building and the former United Savings Bank of Detroit building. A total of 8 projects are part of the funding, according to the DDP.

 

Metro Detroit Rents Begin to Soften Amidst All-Time High

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Although metro Detroit’s average rent growth is 5.14% annually, and metro Ann Arbor’s is 7.14%, metro Detroit’s rent market is beginning to soften.  According to CoStar Group Inc., asking rents are $1,214 a month in the metro area. In Ann Arbor, the average asking rents are up to $1,443 a month. The largest annual increase between both areas was in Saline, with rents up 26.56% which equates to $1,311 a month. Birmingham/Bloomfield area averages $1,815 a month, which is down from $1,857. Detroit’s west side has the most affordable rent at $726 a month. According to CoStar’s director, inflation, rising interest rates and home sales prices, increasing maintenance costs and a rush of renters wanting t lock in rates contributed to increasing rents.

 

Vacant WBJK Building To Become Midnight Golf Headquarters

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On August 5, the deed to the former WJBK-TV Studios building was transferred to another entity called 7441 MGP Properties LLC. The building, located in Detroit’s New Center area, will become the new headquarters for the Midnight Golf Program nonprofit. James Jacob, CEO of Ajax Paving Industries Inc. bought the building through his family foundation and donated it to the nonprofit. He has not disclosed the price he paid for the building. According to the founder and president of Midnight Golf, Renee Fluker, the organization is readying a capital campaign to raise the $10-12 million needed to retrofit the property. The program provides college coaches, life skills training and mentoring to about 1,500 students, mostly first-generation college students.

 

Metro Detroit’s Fair Market Rents Increase

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The U.S. Department of Housing and Urban Development is predicting rent hikes for the 2023 fiscal year in metro Detroit. It published fair market rents at a 11.9 percent increase for a two-bedroom apartment. The rate is increasing from $1,084 to $1,213, beginning October 1. This increase is higher than the Michigan and national averages which hover around 10.3 to 10.4 percent. Metro Ann Arbor rates are 9.7 percent higher. Kalamazoo County wins the prize for the highest fair market rent increase at 19.3 percent. Private sector data was used to estimate changes. The figures are used to determine rent ceilings for certain low-income and emergency grants, as well as the worth of housing vouchers and the maximum award amounts for Continuums of Care.

 

Jefferson Chalmsers’ Apartment Building Revived

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The renovated Marlborough Apartments in the Jefferson Chalmers neighborhood have opened. Jefferson East Inc. and its subsidiary, East Jefferson Development Corporation are responsible for the renovation of the 1927 building that houses. 8 unit apartments. They are also renovating another circa 1929 property on the north side of Jefferson. It will have 15 units. According to Mayor Mike Duggan, the second property has stood vacant for 50 years.  The two properties will reserve a total of 13 units for tenants with incomes between 50% and 60% of the area median income. The two and three bedroom units will range from $848 to $914 a month.

 

 

Some Question Bedrock’s 10-Year Tax Break

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A month ago, Detroit City Council Members stressed that stricter requirements for affordable housing are part of the $60 million tax break deal given to Bedrock’s Hudson’s site project. However, Bedrock LLC is almost completely in compliance with those requirements already.  As a result, the company won’t have to change much of anything in exchange for the 10-year tax break deal, including not having to add any affordable units to the project.  Some question if the city’s requirements for Bedrock are stringent enough. The Hudson’s site project is expected to be finished in 2024.

 

 

Corktown Receives A $50 Million Facelift

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The Michigan Department of Transportation and the city of Detroit are co-funding a $50 million renovation of the Corktown neighborhood.  The makeover will include dedicated lanes for autonomous vehicles, raised bike lanes and the removal and repurposing of its red brick pavers. The goal is to tie into Ford Motor Company’s renovation of Michigan Central Station and the vision of creating a connected corridor from Detroit to Ann Arbor. Corktown’s old brick will be removed, restored and reincorporated into other aspects of the roadway’s design. It will be replaced with new red concrete pavers. MDOT will fund $42.7 million, and the city will fund $7.32 million.

 

New Report Offers Insight into Detroit’s Rental Housing

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Information on the number of rental properties in Detroit is limited and creates issues concerning improvements to housing conditions and reduction of lead exposure. Most landlords in Detroit own one or two properties, making up about 50% of the units in the city.  Of that number, only 2% have registered properties within the city’s formal rental system. The think tank, Detroit Future City, released an analysis on Wednesday that breaks down landlords into categories using the assessed value of the property, corporate ownership, blight violations, taxpayer’s location, property acquisitions and the number of units they own. Tenant advocates continue to raise concerns about evictions and unaffordable housing. The goal is to support landlords and enable them to become compliant with healthier housing conditions.