By Aaron Mondry
Outlier Media
Dozens of public housing tenants in Detroit are getting a once-in-a-lifetime shot at homeownership. But poverty and poor credit could still be stubborn barriers, even with financial support.
The Detroit Housing Commission (DHC) is selling all 195 single-family homes in its portfolio and giving current residents priority to buy them. The agency is expected to announce the program Wednesday alongside a $1.2 million commitment from the Rocket Community Fund to support the first 10 home purchases. The money will grant buyers down payment assistance and up to $60,000 in repair work to be done by the DHC.
“Our overall mission is to help families achieve stable homeownership that can lead to a more prosperous life,” said Beth Sorce, Rocket Community Fund’s senior director of housing stability. “Our investment with DHC is really about helping Detroit families achieve that dream of homeownership.”
DHC Director Arthur Jemison said the program benefits both residents and the commission. It gives tenants a chance to buy homes at a discount and start building the generational wealth that’s remained out of reach for many Detroiters.
The sales will also bring in much-needed cash to fix up other properties in the commission’s portfolio. Many of the homes have fallen into disrepair and historically received low inspection scores.
“It’s going to reduce the pressure on our operating costs,” Jemison said. “The capital we make from the sales is going right back into our capital programs.”
Buyers will need to qualify for mortgages and can use the grant money to help get approved. Jemison said tenants who need to improve their credit scores will be enrolled into a DHC-run financial stability program and be given time to qualify.
Still, it’s unlikely every tenant who wants to buy their home will qualify, even with assistance.
Laurise Barber desperately wants to buy her home from the DHC. She believes it’s the only realistic path to financial independence for her and her children.
“We would be able to have something of our own, and we can build a better future around it,” Barber said. “Because now your home is stable.”
But she’s worried she won’t be able to. She said her credit score is in the 400s — not nearly high enough for a mortgage.
“I would be devastated,” Barber said, if she couldn’t qualify.
—————
How it works
Jemison said about 150 of the DHC’s single-family homes are occupied, and those tenants will get the first chance to buy them.
In addition to qualifying for a mortgage, they’ll need to put down at least 1% of the purchase price — $1,000 for a home that costs $100,000.
Buyers will get a grant covering 20% of the sale price for their down payment, plus a dollar-for-dollar match on any additional money they put down, up to $15,000.
Over the next few months, the DHC will conduct inspections to determine the repairs that need to be done and set purchase prices. Tyler Hardy, DHC real estate development director, said the average sale price will be around $82,000.
In April, the DHC will announce which residents are immediately eligible and who will be placed on the waitlist. It hopes to close on the first 10 sales this spring. Sorce said Rocket Community Fund may contribute funds to support additional purchases over the next two years.
The commission will make homes it doesn’t sell to tenants available to others enrolled in the financial stability program. If homes remain available, the DHC will open up sales to other buyers who make up to 80% of the area median income, which is $56,600 for an individual.
The DHC will assist tenants who are unable to purchase their home by providing them with a Section 8 voucher or public housing placement.
The Detroit Land Bank Authority is providing technical support for the purchase program and helping to sell unoccupied homes.
—————
Losing hope
When Barber first moved into public housing, she thought the reduced rent would help her save money and maybe even go back to school.
“I was really hoping that once I got here, I’d be able to build myself up to go further in life,” she said.
But in many ways, she said, public housing has made her life materially worse.
Barber said she fell through a hole in her bathroom in the first DHC unit she lived in, which injured her and made it harder to find employment.
She then moved into a DHC-owned house in 2023. Like her apartment, it had numerous problems, including a faulty electrical system and a leak in her kitchen ceiling. She submitted work orders over the years, but said nothing ever got fixed.
Barber still hasn’t been able to find steady work. She said the DHC told her she isn’t allowed to do in-home child care, so she makes money through odd jobs, including driving for Uber. She said she applied for the DHC’s financial stability program when she moved in, but the commission never followed up.
Now, she’s worried she’ll lose out on a rare opportunity to become a homeowner.
“Every day, a tear falls,” Barber said. “Where am I going to go? What am I going to do?”
Outlier Media
Dozens of public housing tenants in Detroit are getting a once-in-a-lifetime shot at homeownership. But poverty and poor credit could still be stubborn barriers, even with financial support.
The Detroit Housing Commission (DHC) is selling all 195 single-family homes in its portfolio and giving current residents priority to buy them. The agency is expected to announce the program Wednesday alongside a $1.2 million commitment from the Rocket Community Fund to support the first 10 home purchases. The money will grant buyers down payment assistance and up to $60,000 in repair work to be done by the DHC.
“Our overall mission is to help families achieve stable homeownership that can lead to a more prosperous life,” said Beth Sorce, Rocket Community Fund’s senior director of housing stability. “Our investment with DHC is really about helping Detroit families achieve that dream of homeownership.”
DHC Director Arthur Jemison said the program benefits both residents and the commission. It gives tenants a chance to buy homes at a discount and start building the generational wealth that’s remained out of reach for many Detroiters.
The sales will also bring in much-needed cash to fix up other properties in the commission’s portfolio. Many of the homes have fallen into disrepair and historically received low inspection scores.
“It’s going to reduce the pressure on our operating costs,” Jemison said. “The capital we make from the sales is going right back into our capital programs.”
Buyers will need to qualify for mortgages and can use the grant money to help get approved. Jemison said tenants who need to improve their credit scores will be enrolled into a DHC-run financial stability program and be given time to qualify.
Still, it’s unlikely every tenant who wants to buy their home will qualify, even with assistance.
Laurise Barber desperately wants to buy her home from the DHC. She believes it’s the only realistic path to financial independence for her and her children.
“We would be able to have something of our own, and we can build a better future around it,” Barber said. “Because now your home is stable.”
But she’s worried she won’t be able to. She said her credit score is in the 400s — not nearly high enough for a mortgage.
“I would be devastated,” Barber said, if she couldn’t qualify.
—————
How it works
Jemison said about 150 of the DHC’s single-family homes are occupied, and those tenants will get the first chance to buy them.
In addition to qualifying for a mortgage, they’ll need to put down at least 1% of the purchase price — $1,000 for a home that costs $100,000.
Buyers will get a grant covering 20% of the sale price for their down payment, plus a dollar-for-dollar match on any additional money they put down, up to $15,000.
Over the next few months, the DHC will conduct inspections to determine the repairs that need to be done and set purchase prices. Tyler Hardy, DHC real estate development director, said the average sale price will be around $82,000.
In April, the DHC will announce which residents are immediately eligible and who will be placed on the waitlist. It hopes to close on the first 10 sales this spring. Sorce said Rocket Community Fund may contribute funds to support additional purchases over the next two years.
The commission will make homes it doesn’t sell to tenants available to others enrolled in the financial stability program. If homes remain available, the DHC will open up sales to other buyers who make up to 80% of the area median income, which is $56,600 for an individual.
The DHC will assist tenants who are unable to purchase their home by providing them with a Section 8 voucher or public housing placement.
The Detroit Land Bank Authority is providing technical support for the purchase program and helping to sell unoccupied homes.
—————
Losing hope
When Barber first moved into public housing, she thought the reduced rent would help her save money and maybe even go back to school.
“I was really hoping that once I got here, I’d be able to build myself up to go further in life,” she said.
But in many ways, she said, public housing has made her life materially worse.
Barber said she fell through a hole in her bathroom in the first DHC unit she lived in, which injured her and made it harder to find employment.
She then moved into a DHC-owned house in 2023. Like her apartment, it had numerous problems, including a faulty electrical system and a leak in her kitchen ceiling. She submitted work orders over the years, but said nothing ever got fixed.
Barber still hasn’t been able to find steady work. She said the DHC told her she isn’t allowed to do in-home child care, so she makes money through odd jobs, including driving for Uber. She said she applied for the DHC’s financial stability program when she moved in, but the commission never followed up.
Now, she’s worried she’ll lose out on a rare opportunity to become a homeowner.
“Every day, a tear falls,” Barber said. “Where am I going to go? What am I going to do?”
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