Bwana Richard danced with joy after becoming the 22nd new homeowner through our Newberry affordable homeownership program. “I’m so excited that it doesn’t even feel…
Southwest Solutions is transitioning 60 former rental properties in the Newberry community to affordable homeownership. Newberry is an 8-block area in the Chadsey-Condon neighborhood in southwest Detroit. Current renters have priority in taking advantage of this opportunity. The Newberry program is supported through a generous donation from the Sam L. and Judith G. Yaker Fund.
The 60 single-family houses that Southwest Solutions acquired in Newberry were built by a developer two decades ago with Low-Income Housing Tax Credits (LIHTC) to provide affordable rental housing for low to moderate income families. The LIHTC compliance period expired recently, creating the unique opportunity for those who had been renting to become homeowners.
The purchase price for a Newberry home is currently $55,000. This may increase in response to market conditions. Thanks to a $2.5M grant from the Sam L. and Judith G. Yaker Fund, up to $20,000 in downpayment assistance is available to each homebuyer as a conditional grant. The grant is forgiven once the homeowner has lived in the home for five years. Newberry homebuyers sign 15-year mortgages. The monthly mortgage payments, including taxes and insurance, are generally and often significantly less than what the households had been paying in rent. Thus, the Newberry initiative is truly an affordable homeownership program.
Each Newberry resident interested in owning the home must complete a Homebuyer Education class at Southwest Solutions. The prospective homebuyer may also need to work with a Southwest Solutions’ financial counselor to improve the homebuyer’s credit score. Both the Homebuyer Education class and the financial counseling are free for Newberry homebuyers.
Homeownership is still the primary way for families to build wealth in our country. Homeownership is also vital to stabilize and advance neighborhoods in our city. The Newberry affordable homeownership program is an innovative model to uplift families and the neighborhood in which they reside. Southwest Solutions strongly believes that the success of this model has important implications for revitalizing other neighborhoods in Detroit.
If you are a Newberry resident interested in taking advantage of this affordable homeownership opportunity, please download this letter that describes the steps to purchase your home. To download a schedule of our Homebuyer Education classes this year, click here. You can register for a Homebuyer Eduction class at this link.
Before our Newberry initiative, there were no new mortgages in the census tract that includes Newberry for two decades.
To learn more about the Newberry program, contact Dan Pederson via email or at 313-297-1324.