As Develop Detroit plugs away at its plan to renovate and build 70 homes in north Detroit, it is also working to develop a new neighborhood fund to prop up similar projects.

The Detroit-based nonprofit developer is a year into its $6.5 million homebuilding effort in the North End and Grandmont Rosedale neighborhoods. Phase one is expected to be complete in July and include the construction of 14 new homes and the renovation of seven homes in the area bound by Marston Street, Philadelphia Street, John R Street and Woodward Avenue, as well as two renovated homes in the Rosedale/Minock Park neighborhoods in northwest Detroit.

Phase one was originally scheduled to be done in March, but poor weather pushed back construction slightly, said Sonya Mays, president and CEO of Develop Detroit. Still, the project is on a solid pace, she said. A duplex in the North End sold for $320,000, four homes have sales pending for $250,000 each, and the remaining homes are expected to be on the market by the end of the month.

"There's a lot of investor interest in this particular neighborhood, but also just the idea that you could do this kind of for-sale project in a Detroit neighborhood," Mays said. "There's appetite out there."

The development group is preparing to roll out a new neighborhood fund as an extension of its main equity investment fund, Mays said. The neighborhood fund would seek mainly foundation grants that would be funneled to neighborhoods in north Detroit or those outside of the ones already a magnet for investment, such as downtown and Midtown. Sean White, director of fund development for Develop Detroit, said they are talking with foundations and hoping to have a fund set up this summer. The goal is to raise $1 million.