North End Neighborhood Welcomes “The Beauton,” a New $7.3M Affordable Housing Project

The city of Detroit marked a significant milestone today with the commencement of a new affordable housing project, known as “The Beauton.” With an investment of $7.3 million, this mixed-use development is set to introduce 29 fresh units of affordable living to the city’s North End. The groundbreaking event was a festive affair attended by Detroit’s Mayor Mike Duggan, the project developer Charles Dickerson III, various officials, funders, and community members.

Designed to alleviate the housing crunch in Detroit, The Beauton will add 29 new budget-friendly apartments to the city’s residential options. This will include a diverse mix of 10 micro-studio units, 15 studio apartments, and four larger units – two one-bedroom and two two-bedroom units. In an effort to make the apartments accessible to local Detroiters, a significant number of these units will be priced well below the market rate, with rents pegged at 50-120% of the area’s median income (AMI). Interestingly, more than half of these apartments will be available at or below 80% of the AMI. The most affordable options among these, the micro units, will have rents as low as $700 per month. As part of the agreement, the affordability of these apartments is guaranteed for the forthcoming 12 years.

Highlighting the significance of the project, Mayor Duggan said, “With new investment often comes increased rental pressure for existing residents. The Beauton’s 29 new affordable housing units will provide relief to North End residents, ensuring that people across all income levels can reside in a flourishing neighborhood.”

Council President Mary Sheffield expressed her enthusiasm about the housing expansion and its impact on the North End. She noted, “The Beauton Development not only generates new affordable housing options for residents and families, but it also sets an example of what is achievable when developers of color are given an opportunity to participate in the revitalization of our neighborhoods.”

The ambitious project has been funded by various entities, including a $1.55M loan from the Detroit Housing for the Future Fund (DHFF), a $2.45M construction loan from Capital Impact Partners, a $1.497M grant from the Michigan Economic Development Corporation, and a $500K loan from Ebiara to CADS III Management. The Detroit Economic Growth Corporation also contributed with a $743K tax abatement for the project spread out over the next 15 years.

Expressing gratitude for the support, Charles Dickerson, the man behind CADS III Management, the firm developing The Beauton, said, “Ensuring affordability for these apartments is crucial to us. The Beauton aims to be within reach of all Detroiters and that is a key part of this project’s mission.”

The project, in partnership with LISC and the city of Detroit, qualified for a DHFF Developers of Color Matching Grant. This grant aims to foster minority-led affordable housing projects in Detroit by providing matching funds to cover predevelopment expenses and soft costs. Camille Walker Banks, Executive Director of LISC Detroit, expressed her excitement for the new housing option and the Developer of Color Grant provided to Charles Dickerson’s firm.

DHFF, which is a part of the larger Affordable Housing Leverage Fund, has contributed to 13 projects so far, creating or preserving 435 affordable units in Detroit. Commenting on this, Julie Schneider, Director of the City’s Housing and Revitalization Department, said, “The Beauton is the latest example of how the DHFF is a powerful tool to preserve and create neighborhood-based, affordable, and mixed-income housing.”

The Beauton also benefited from a loan from the Ebiara Fund, designed to foster participation and leadership from developers of color in Detroit’s rebuilding efforts. “The Beauton is the first “from the ground up” project for Charles Dickerson and CADS III Management,” said Rod Hardamon, Managing Director of Ebiara. “Our goal at Ebiara is to ensure that developers like Charles play a significant role in shaping Detroit long into the future.”

With construction now underway, The Beauton is expected to be completed within a year, making the new housing units available to tenants by the summer of 2024.