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Second Floor Apartment Program

Second Floor Apartment Program

Grant Program for the rehabilitation of residential apartments over ground floor commercial space. The funding allocated by HRD is part of the $203 million housing plan announced in July by Mayor Mike Duggan and City Council members  as part of an effort to increase the number of affordable rental housing units in the city.

Program Overview

The Second Floor Apartment program offered by the City of Detroit Housing and Revitalization Department supports property owners seeking to renovate vacant second floor apartment space into occupied rental units with rents at or below 60% AMI. Matching grants provide a financial incentive to help building owners better utilize their vacant or underperforming space. With more second floor apartments, residents have more varied and viable living options, business corridors have increased residential customer base. 

What are the qualifications?

  • Applicant must own two story mixed-use building with commercial on the first floor and residential on the second floor.
  • Building must be current on property taxes, water bills, and have no outstanding blight violations.
  • Completed units must have rental rates affordable to residents at or below 60% AMI as defined by MSHDA per bedroom and maintain those rental rates for a five year period.
  • Completed units must have an executed 12-month lease (no short-term rentals)
  • Completed units must obtain a rental Certificate of Compliance from the City of Detroit's Buildings, Safety Engineering, and Environmental Department (BSEED).
  • Grant funds are paid as a reimbursement after construction is complete.
  • Any construction undertaken prior to application or without city permit are not eligible.

How to Participate:

Phase 1 - Southwest Detroit

APPLICATION CLOSED - The City of Detroit awarded Southwest Detroit Business Association a contract to administer 24 units of second floor apartments in Southwest Detroit. See SDBA's website for additional information 

Phase 2 - Citywide

The Housing and Revitalization Department is preparing to release additional grant funding to support the renovation of second floor apartment units above commercial space citywide. Full application expected early 2024, interested building owners are encouraged to complete the interest form and will be notified when applications open.

Building Owner Interest Form:

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