Sheffield order doubles proceeds for Detroit affording housing fund

March 25, 2026

Detroit Mayor Mary Sheffield has signed an executive order that increases funding for affordable housing by directing all revenue from city-owned commercial property sales to the Affordable Housing Development and Preservation Trust Fund, up from the current 40% requirement. The change, effective July 1, will more than double annual contributions to approximately $4 million, with 70% designated for housing units serving residents at or below 30% of the area median income. This action fulfills a campaign promise from Sheffield, who previously championed Detroit's inclusionary housing ordinance while serving on City Council.

Who is affected

Detroit residents seeking affordable housing, particularly low-income households earning at or below 30%-50% of area median income (approximately $39,209)
Mayor Mary Sheffield (issuing the order)
Housing developers receiving gap financing, loans, and grants from the trust fund
LaJoya Gardens residents, including Nora Rodriguez and her baby
The Detroit Housing and Revitalization Department (directed by Julie Schneider)
Households at LaJoya Gardens earning between 30%-80% of area median income

What action is being taken

Mayor Sheffield is directing 100% of proceeds from city-owned commercial property sales to the Affordable Housing Development and Preservation Trust Fund (effective July 1)
The trust fund is providing gap financing, low-interest loans, and grants to developers
70% of funds are being allocated toward units at 30% AMI or below, with the remainder supporting projects at 50% AMI or below

Why it matters

This executive order addresses Detroit's critical affordable housing shortage by more than doubling annual funding from roughly $2 million to $4 million. Stable, affordable housing serves as the cornerstone of residents' lives, particularly for the city's most vulnerable populations earning significantly below the median household income. The increased funding enables more developments like LaJoya Gardens, where residents such as Nora Rodriguez can find safe, suitable housing they otherwise couldn't afford. By requiring affordability to be maintained for at least 30 years, the policy ensures long-term housing security rather than temporary relief.

What's next

The executive order goes into effect July 1, marking the start of the new fiscal year
Units receiving trust fund aid must remain affordable for at least 30 years from construction completion
Priority will be given to proposals likely to remain affordable in perpetuity through deed restriction or developer nature

Read full article from source: bridgedetroit.com