Creating a Detroit that has room for everyone – especially in terms of housing – is a goal for the city’s government, its residents and, increasingly, its developers. A new example of this is the newly announced The Hamilton.

Broder & Sachse Real Estate and the City of Detroit have reached an agreement to keep affordable housing in the multi-family development located in Midtown at 40 Davenport Street, formerly known as the Milner Arms Apartments. Broder & Sachse purchased the property in March 2016.

The building, which has been renamed The Hamilton, is described as a “win for the residents and a win for the City,” said Arthur Jemison, Director of the Housing & Revitalization department.

worked with the City of Detroit’s Department of Housing and Revitalization, as well as Midtown Detroit Inc.’s Stay Detroit Program, to develop a new model for responsible rehabilitation of an occupied building. This program will help qualified residents locate temporary housing and return to The Hamilton after renovations are complete.

“We want to say thank you to the developers who stepped up and recognized the importance of growing together. I am really pleased with the high standard they are now setting for other developers in this community,” added Jemison.

Broder & Sachse will assist with the process of finding interim accommodations and will support qualified residents with financial assistance for incurred expenses, including moving fees, security deposits and any differences in rental fees during renovation of 40 Davenport. Residents who make less than $40,000 will qualify for the program. Current residents making $40,000 and above will have first rights to new apartments.

Under the agreement, Richard Broder and Todd Sachse will undertake a $12 million redevelopment of the 93-unit building known as 40 Davenport. To adequately improve the necessary systems within this historic property, qualified residents of the building will work with United Community Housing Coalition to be temporarily relocated to appropriate units where they will pay only their current rent with any difference in rent paid by the developer. Full rehabilitation will not start until each qualified resident has an appropriate unit. They will be moved back into new units at no cost to them and maintain their legacy rental rates as long as they choose to lease in the building.

The average affordable rent in the building is approximately $600. Upon returning to the building the qualified residents will pay a one-time increased rent of 5 percent, and rental rates will never increase by more than 1 percent per year.

“The Hamilton is a unique and architecturally significant building located in the booming Midtown neighborhood of Detroit,” Broder & Sachse CEO Richard Broder said. “It is a true honor to work with and for the community and to restore this important property, providing safe, affordable and comfortable living options for a wide range of residents in the city. In addition to updating the critical infrastructure of the property, we intend to restore the stunning ballroom and add outdoor space. We are still in the planning stages for the project and will share additional information with the local community when it is available.”

In exchange for the developer’s commitment to keeping units affordable, the City will support the project request for tax abatements with the Council and contribute approximately $450,000 towards the costs of the rehabilitation.

“Developing a plan for sustained housing and support for residents of 40 Davenport has been our top priority, and this is a creative way to develop a true mixed-income property, preserving the neighborhood and providing stability in the community while transforming this historic property into well-maintained affordable units,” said Broder & Sachse Vice President Todd Sachse. “We have been working closely with the city on fine-tuning our plan, and we are pleased to partner with the city on this concept for our residents while we pursue necessary historic renovations.”

This is the first time the city and developers have worked in this way to preserve occupancy in a building that did not have federal or state income restrictions.

In 2014, Broder & Sachse acquired and redeveloped 1214 Griswold, now known as the Albert, an expired affordable senior housing building in Capitol Park as market housing. All former residents were given a Section 8 voucher, but the affordable housing in the Albert was not preserved. Today with the Hamilton, Broder & Sachse are being proactive about inclusive growth, with a focus on preserving affordability and occupancy for current residents.

The move also comes on the heels of council action on the Stevens & Industrial property in downtown which will preserve 165 deeply subsidized units on Washington Boulevard.

Renovation plans are currently underway. Broder & Sachse is reviewing and considering all options for development related incentives. In addition to faithfully restoring period-appropriate elements, Broder & Sachse will introduce contemporary amenities to the individual units and the common areas. Due to the nature of the infrastructure updates required, including electrical and HVAC systems, residents will be relocated prior to construction commencement.

Situated at the cross-streets of Woodward and Martin Luther King Jr. drive, the property first opened in 1913 as Hotel Stevenson, and was placed on the National Register of Historic Places in 1997.

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