Detroit Housing Commission has a new plan to save one of its developments. Residents have questions

The Villages at Parkside has long been falling apart . Now the Detroit Housing Commission (DHC) plans to tear down the low-income housing complex and rebuild it with the help of a private developer.

This is the first effort in a potentially major shift in how the city’s largest provider of affordable housing manages and maintains its thousands of units. Many of those homes have failed inspections in recent years . The DHC hopes this new approach of partnering with private developers will bring in millions of dollars in funding it desperately needs.

Residents of Parkside agree drastic change is needed at the complex, but still have plenty of questions about their own future there.

The DHC’s plans to redevelop the complex are finally starting to come into focus after several years of planning. It may have chosen Parkside to test this new approach because of the uniquely dire state of the complex.

The public housing community on the eastside has steadily deteriorated since the DHC converted it to private ownership in the 1990s. Residents have since complained about mold, leaks and roofing issues for years. There are 276 units at Parkside, but the DHC says there are only around 130 residents. Vacancy across all the commission’s properties is around 23% .

Last month, it entered into a development agreement with Ginosko Development Co., a Novi-based firm that owns several multifamily buildings in Detroit.

Ginosko plans on building apartment buildings, retail along Conner Street and some low-density housing that could be a mix of fourplexes, duplexes, townhomes and single-family homes. The commission’s interim CEO Irene Tucker said the entire development is expected to have at least 480 units and cost around $200 million. Construction should start next year.

The DHC will provide vouchers to subsidize rent for more than half the residents and pitch in up to $8 million in funding.

Residents will move into apartments Ginosko builds if they choose to stay at the development. The old Villages at Parkside will then be demolished.

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This agreement represents the first time the commission is partnering with a private developer on housing they will co-own.

The deal is one way the DHC — which is desperate to get more money into its properties — can move away from being almost exclusively funded by the federal government.

The commission gets about $12 million in federal dollars annually for maintenance, but former CEO Sandra Henriquez estimated the cost of needed repairs and improvements would actually cost hundreds of millions.

Teaming up with private developers isn’t the only way for housing authorities to access alternative sources of funding, like loans, tax credits and private financing. But the commission has been slow to use them.

“By investing in developments such as Parkside, the DHC aims to modernize its portfolio, offering residents better, more sustainable, and more attractive housing options,” Tucker said by email.

Parkside may be just the beginning. In its 2024 annual report , the commission said it would consider converting its entire portfolio to this mixed-finance model.

Concerns remain

The DHC believes the Parkside development will make things better for future residents.

“The redevelopment of Parkside holds promising prospects for residents in the long term,” Tucker said. “With a focus on creating a better, improved, and modernized living experience, residents can expect upgraded housing units, enhanced community facilities, improved infrastructure, and potentially new amenities.”

People who live there now acknowledge radical change is necessary at Parkside. But they still have questions.

“The Villages need to be demolished,” said Irean Neal, a resident of Parkside for 44 years. “We’re just waiting for them to get back to us with answers.”

Residents are most concerned about relocation. Ginosko’s phased development plan requires residents to move from their townhomes into smaller apartments, and some consider that a downgrade.

“People keep telling me, ‘Maybe it’s time for a change,’” Neal said. “That’s easy for you to say. This is the only place I know.”

Ginosko told current residents they would be first in line for the new low-density units when they’re finished.

But Neal is skeptical this will be true because residents learned in May some of the homes will be for sale. She worries they won’t be able to afford them. She also said her trust of the DHC is “very, very low” because it was absent for years while the private owners let the community deteriorate.

Partnerships with private developers aren’t a golden ticket for the commission. At the DHC’s May board meeting, a number of residents and advocates called to complain about conditions at Gardenview Estates , where another private developer has sole ownership over hundreds of units. Residents say they are in terrible shape.

Commissioners said the agency can do little about it because it gave up its ownership stake and is leasing the land to the developer.

The new Parkside will hopefully be different. The development agreement states there will be a 50-50 ownership split between the DHC and Ginosko.

“We don’t get into these situations like we had at Parkside and Gardenview anymore where we have all the accountability and none of the power,” Commissioner Aaron Seybert said at the May meeting.

Nearly $2 million question

A long-time community support nonprofit also says a dispute over funding for resident services would help make the transition easier.

An endowment dating back to when Parkside was constructed has grown to nearly $2 million through accrued interest over the past 30 years, according to The Friends of Parkside Executive Director Zachary Rowe.

He believes his and other on-site organizations should have access to that money. The nonprofit isn’t asking for much: It hosts a weekly bingo night, distributes food monthly and connects residents to job and educational opportunities. Rowe says he’s been asking to access the funding for years but worries the DHC wants to use it to fund its own resident services division.

“The endowment was not created to fund the Detroit Housing Commission,” Rowe said.

Tucker said the DHC is “actively reviewing these claims and has requested a legal opinion on the matter.”

“At the end of the day, residents are the ones who paid the cost of mismanagement and lack of investment,” Rowe said. “Now, with this new development, they’re still paying the cost.”

Detroit Housing Commission has a new plan to save one of its developments. Residents have questions · Outlier Media