Newberry Home Ownership

The 60 single-family houses that Southwest Solutions acquired in Newberry were built by a developer two decades ago with Low-Income Housing Tax Credits (LIHTC) to provide affordable rental housing for low to moderate income families. The LIHTC compliance period expired recently, creating the unique opportunity for those who had been renting to become homeowners.

The purchase price for a Newberry home is currently $69,000. This may increase in response to market conditions. Thanks to a $2.5M grant from the Sam L. and Judith G. Yaker Fund, all the homebuyers receive down payment assistance, and eligible homebuyers receive up to $20,000 as a conditional grant. The grant is forgiven once the homeowner has lived in the home for five years. Newberry homebuyers sign 15-year mortgages. The monthly mortgage payments, including taxes and insurance, are generally and often significantly less than what the households had been paying in rent. Thus, the Newberry initiative is truly an affordable homeownership program.

Homeownership is still the primary way for families to build wealth in our country. Homeownership is also vital to stabilize and advance neighborhoods in our city. The Newberry affordable homeownership program is an innovative model to uplift families and the neighborhood in which they reside. Southwest Solutions strongly believes that the success of this model has important implications for revitalizing other neighborhoods in Detroit.