Detroit's second Strategic Neighborhood Fund is rapidly outpacing its predecessor for fundraising commitments from the private sector.

The city says that since the $130 million Strategic Neighborhood Fund 2.0 was launched in April, it has commitments from foundations and private companies of more than $32 million, compared to the $16 million it raised in two years for the $42 million Strategic Neighborhood Fund 1.0.

That puts the fund well on its way to its goal of $56 million in foundation/corporate funding. The remaining $74 million would come from local matches plus state and federal dollars.

The fund was a major topic of discussion on a panel at Detroit Homecoming's real estate forum featuring Sterling Group founder and Chemical Financial Chairman Gary Torgow; Kresge Foundation Social Investment Officer Aaron Seybert; Clifford Brown, managing partner of Woodborn Partners; and Detroit Economic Growth Corp. President and CEO Kevin Johnson.

Ryan Friedrichs, chief development officer for Detroit, declined to say which foundations and companies have made commitments or how much to finance the fund, which invests in Detroit neighborhood projects, pending necessary board approvals.

"It is pretty striking the response we have been able to get," he said. "It's really a validation of the first Strategic Neighborhood Fund strategy."

The first fund was $42 million for three Detroit neighborhoods: Islandview/Greater Villages, Vernor/Southwest and Livernois-McNichols. The second is expected to be $130 million invested across seven neighborhoods: Grand River Northwest, Warrendale/Cody-Rouge, Russell Woods/Nardin Park, Campau/Banglatown, Gratiot/Seven Mile, East Warren/Cadieux and Jefferson Chalmers.

The second fund is being invested in things like streetscape improvements, gap real estate financing, parks, single-family home stabilization and neighborhood planning.

The Kresge Foundation made the first contribution to the second fund, of $15 million.

Arthur Jemison, director of city services, said four neighborhood plans have been completed: Livernois-McNichols, Vernor/Southwest, Islandview/Greater Villages and Grand River Northwest. Three more are in progress: Jefferson Chalmers, Russell Woods/Nardin Park and Campau/Banglatown, and the remaining three (Gratiot/Seven Mile, East Warren/Cadieux and Warrendale/Cody-Rouge) are expected next year.

"The money is meaningful in the way neighborhoods are changed," Jemison said.

With $42 million from SNF 1.0, $130 million from SNF 2.0 and $250 million from the Affordable Housing Leveraging Fund announced in March, the projected investment in the neighborhoods will reach $422 million over the next five years. That investment is expected to leverage more than $600 million in private investments, pushing total neighborhood investment over $1 billion.

The two neighborhood funds are administered by the city and Invest Detroit, while the affordable housing fund is administered by the city and the Local Initiatives Support Corp., Jemison said.

Friedrichs said the combination of the second neighborhood fund and the affordable housing fund is beneficial when pitching the investment opportunity to foundations and companies.

"That has been striking to both the foundation and corporate side," he said. "You're thinking about growth and inclusion, and how you really have affordability as you turn on the economic engines again."