Broder & Sachse Real Estate Services Inc. plans a $12 million renovation of the former Milner Arms apartment building in Midtown and to keep some of its 93 units as affordable housing.

The Birmingham-based company, which bought the building now known as The Hamilton 14 months ago, has agreed to help current residents secure temporary housing during the renovation process, according to a news release. The assistance includes paying for moving fees, security deposits and differences in rental rates in temporary housing for residents making less than $40,000 a year; residents making $40,000 and above get first rights to new apartments.

All residents will meet with Detroit-based United Community Housing Coalition to secure temporary housing, and an evaluation for residents making $40,000 or more will be done to determine if they will receive financial assistance to help with the relocation.

Residents will pay only their current rent at The Hamilton in their temporary housing; Broder & Sachse will cover the difference, according to the release.

When the residents move back in (at no cost to them), they will see a one-time 5 percent increase in rent, and will not receive a rent increase of more than 1 percent per year. The average affordable rent in the building is $600 per month, the release says.

Arthur Jemison, the city's director of housing and revitalization, said in a statement that the project represents "the high standard (Broder & Sachse is) now setting for other developers in this community."

Rehab work — which includes replacing HVAC and electrical systems, restoring the building's ballroom and adding outdoor space — won't begin until all residents are moved out.

CEO Richard Broder said in a statement that additional details on the rehabilitation will be made available in the future. He called the building "unique and architecturally significant."

Any new residents moving into the building following renovations would be expected to pay market-rate rents, according to a Broder & Sachse spokeswoman.

Sachse Construction and Hamilton Anderson Associates, both based in Detroit, are the project's construction manager and architect, respectively.

City tax abatements are expected as part of the project.

The purchase price for the 104-year-old building at 40 Davenport St. near Mack and Woodward avenues, originally developed in 1913 as the Hotel Stevenson and placed on the National Register of Historic Places in 1997, was not disclosed.

The Milner Arms, previously owned by Milner Hotels Inc., was the last Detroit property in the Milner family real estate portfolio.

Broder & Sachse in 2014 took criticism for its handling of a market-rate conversion of a Capitol Park apartment building, now known as The Albert, for low-income seniors. They were given Section 8 vouchers and about a year to relocate, but some said the process was not compassionate.

The Hamilton news comes the day after it was revealed by the Michigan Strategic Fund that Broder & Sachse is also under contract to purchase the 152,000-square-foot Orchestra Place office building just to the east of the apartment building.