While Detroit continues work demolishing the city's huge inventory of vacant and blighted houses, a unique housing construction plan is about to commence in one neighborhood.

The creation of a neighborhood of tiny homes, expected to cost $1.5 million, is in the works to provide affordable housing for low-to-moderate income residents.

Ford Motor Co. is helping to fund the Cass Community Social Services-led project with a $400,000 donation toward construction.

"Cass Community's tiny homes project presents an opportunity to make a big difference in an underserved Detroit neighborhood," said Jim Vella, president of the Ford Motor Company Fund and Community Services. "Ford has a proud legacy of giving back to Detroit and Southeast Michigan and this type of transformational project aligns with our mission of making people's lives better through innovation."

The group and its volunteers plan to build 25 houses in vacant lots, ranging from 250 to 400 square feet, located off Elmhurst Street, between Woodrow Wilson Street and the John C. Lodge Service Drive.

Ten of the homes will be 250 to 300 square feet, another 10 will be 350 square feet and the final four will be 400 square feet.

The first home is located at 1564 Elmhurst Street. Rent is based on the size of each home, ranging from $250 a month for a 250-square-foot home to $400 a month for a 400-square-foot home.

Each home is allowed no more than two residents, but plans for larger homes supporting up to four residents are being considered in the future. The homes are funded through private donors and sponsors with much of the materials and labor being donated.

They will include High-R building insulation, Energy Star appliances, energy efficient windows, low-flow toilets, faucets and showerheads, Pointe Alarm security system and more. The estimated cost per home is between $40,000 and $50,000.

Rev. Faith Fowler, executive director of CCSS said part of creating affordable living involves a $32-per-month heat and electric bill for the winter time. The first six houses are expected to be move-in ready by October 2016.

"The Cass tiny homes development is so much more than house," Fowler said. "It is a novel anti-poverty program that will transform the residents and this neighborhood while it helps to protect the planet."

Residents will be encouraged to save money each month in case of an emergency and will pay no more than 30 percent of their income for rent and utilities. CCSS will help residents establish savings accounts and setting aside $5,000 per house to assist when necessary. Cass staff are also offering residents employment assistance.

Prospective tenants will sign a year lease and must have some income to qualify. After a seven-year period, tenants will have the opportunity to own the home. After three years leasing, tenants will be invited to sign a land contract for the final four years. The purchase price will be the annual rental amount times four and after paying off the contract, the resident will own the parcel and home.

Ford and Ford Fund have invested $161 million in various community projects over the last decade. Some recipients include: The Detroit Institute of Arts, the M-1 Rail Project, Ford Resource and Engagement Center, Detroit Water Fund, commitment to education through Blue Oval Scholarships, Henry Ford academy and more.

"Ford has always played a role in serving the communities where we do business," Vella said. "We are excited about the future of our region and look forward to expanding even further in critical areas such as education, arts and culture."