Mary Sheffield

Mary Sheffield represents Detroit's 5th District on Detroit City Council.

The city of Detroit is at a crucial crossroads in its history as it embarks on one of the most ambitious economic development programs since the post-World War II boom that created the Detroit as we know it today.

How we begin to address the housing inequities that will inevitably arise out of this growth are of great importance to many Detroiters, most of whom feel locked out. Detroit needs an inclusionary housing policy not only because morally it’s the right thing to do, but also because it is sound fiscal policy. Research shows that cities with a mixed range of incomes are more vibrant and successful, and that affordable housing provides far more than a social or physical benefit to the immediate beneficiary. For cities like Detroit, struggling to achieve economic and racial integration, inclusionary housing is one of the most promising strategies available to ensure that the benefits of development are shared widely and are sustainable well into the future.

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Stop the gentrification talk, start community planning

While it is unquestionably in the best interest of Detroit to attract new residents, repopulate the city, and redevelop our aging real estate, we must be intentional in our efforts to avoid the pitfalls of progress we’ve seen in other major municipalities. As cities like Chicago, New York (Harlem in particular), and Washington, D.C., have recently experienced a resurgence and revitalization, gentrification became a very real problem, and as a result, inclusion became a casualty of progress. Often those who were left behind were forced to finance their own demise in the form of tax abatements, below-market price public land deals, and other financial incentives given to developers using public tax dollars.

As elected officials, it’s incumbent upon us to make sure the city stands by those who stood by it through the good and bad times. However, those intentions and efforts cannot hinge on mere rhetoric and the benevolence of new developers. City leaders must send a message that gentrification will not happen on our watch. During the last 18 months, my office has researched inclusionary housing ordinances across the country and pulled together a work group of nonprofit housing advocates, developers, planners and land-use professionals to address the issue of inclusion in Detroit. These efforts have resulted in drafting Detroit’s first Inclusionary Housing Ordinance with the goal of creating mixed income housing opportunities in new development and rehabilitation projects.

The ordinance will mandate that developers who receive city-owned property at less than true cash value and/or public funding, set aside 20% of their units for residents and families making 80% of AMI (Area Median Income) or lower for at least 30 years. It will create a mechanism for enforcement through an income verification process to ensure that those units that are set aside actually go to low-income residents and families. The ordinance will also appropriate funds, collected from penalties assessed on landlords not in compliance, to create a housing trust fund, the Detroit Affordable Housing and Development Preservation Fund. This fund will address affordable housing needs for Detroit’s most vulnerable citizens, families earning 50% of AMI or lower, with a majority going toward individuals at or below 30% of AMI.

An element of this proposal is already in practice. Developers that receive public assistance must set aside 20% of the units of new housing developments for low-income residents. This ordinance would put that practice into law, require that residents at even lower income thresholds qualify for that housing and build in an enforcement process.

In an effort to achieve an equitable return on the city’s investment with respect to tax abatements, I am fighting for additional provisions that would mandate those developers who do receive such subsidies make at least 20% of their units affordable. Unfortunately, Michigan Public Act 226 of 1988 prohibits local municipalities from creating ordinances that have the “effect” of rent control except in instances where the city has a prevailing property interest. This raises another issue that Detroit faces — the state’s over-reaching control, preventing the city from protecting its residents and assets. I have vehemently opposed this law and will continue the fight in Lansing.

In a city that has lacked a real housing policy, the Inclusionary Housing Ordinance will be a step in the right direction of being intentional about creating housing and employment opportunities for all Detroiters and starting a difficult — but much needed — conversation around affordability in housing. There is room for all willing participants to prosper and enjoy a better quality of life during, and after, the rebuilding of Detroit. We must eliminate income, class and race as barriers to those opportunities and ensure public resources work to create a more diverse and economically just city.

Mary Sheffield represents Detroit's 5th District on the Detroit City Council.