Detroit Developer Celebrates the Grand Opening of “The Ribbon,” a new $8M mixed-use affordable housing project in East English Village

• Detroit developer Edward Carrington was joined by City of Detroit officials, funders, and partners to cut the ribbon on an affordable housing project creating 18 apartments that will be guaranteed at affordable rates for the next 25 years.
• All 18 units available for rent at or below 80% AMI
• Project made possible thanks to the Strategic Neighborhood Fund (SNF) and Detroit Housing for the Future Fund (DHFF)
• New streetscape set stage for the largest investment in decades along the E. Warren corridor

The City of Detroit, LISC Detroit, Invest Detroit, and members of Detroit City Council join Detroit developer Edward Carrington of Flux City Development for the grand opening of a new multi-use affordable housing development on Detroit's east side. "The Ribbon," an $8.2 million development, is the largest development along the E. Warren Ave. corridor in decades and will bring another 18 units of brand-new affordable housing to Detroit.

This is the first project from Edward Carrington and Flux City Development, an emerging developer of color based in Detroit. The new development will provide 18 affordable apartments, all below market rate to make them affordable for Detroiters living in the area. Fourteen of the apartments will rent at or below 80% AMI, while four of the units will be available at or below 60% AMI. Under the terms of the agreement, affordability of the apartments is guaranteed for the next 25 years.

"The East Warren corridor is undergoing a tremendous revitalization, and The Ribbon is going to be a beautiful addition and a major anchor in this area," said Mayor Mike Duggan. "What Eddie Carrington and his team have done to create high-quality housing, that also is affordable to the majority of Detroiters, is a big part of how we are building a city that includes the residents who stayed."

In addition to the residential space, community space on the ground floor will be occupied by Aura Vibez Movement Studio, which will make the Ribbon its first permanent home. Aura Vibez will hold 2,000 square feet of sanctuary space where people can be vulnerable and enjoy diverse fitness practices like yoga, calisthenics, and more. More retail announcements are expected in the near future.

"Our goal was to create a space that reflects the needs, hopes, and dreams of the East English Village community, and I believe we've accomplished that with The Ribbon," said Carrington. "The Ribbon represents new beginnings-a project that will bring opportunities not just for businesses, but also for families and individuals looking to call this community home."

Funding from SNF and DHFF

The $8.2 million redevelopment was made possible by $600,000 in loans from the Detroit Housing for the Future Fund. The Strategic Neighborhood Fund also provided a $1.4 million grant to the development. The development also received $338,199 in DHFF Preferred Equity, $2.2 million from Capital Impact Partners, a CIP EDI grant of $75,000, and a $1.3 million investment from Michigan Economic Development Corporation.

"The Ribbon is another welcome addition into the East Warren Avenue corridor, with more affordable housing and a commercial space that will help revitalize this neighborhood," said Damon Hodge, senior loan officer for Capital Impact Partners, which is part of the Momentus Capital branded family of organizations. "We are proud to provide Ed Carrington and Flux City with financial support for this project. Since graduating from our Equitable Development Initiative years ago, Ed has not only developed real estate with the needs and desires of Detroit's residents in mind, but he has also become a mentor and a champion for other emerging developers in our region."

In addition, the project qualified for a DHFF Developers of Color Matching Grant, designed to grow the pipeline of minority-led affordable housing and preservation developments in Detroit. It offers up to $100,000 in matching funds to cover a portion of a project's predevelopment expenses and soft costs. The grants are made possible through DHFF's partnership with JPMorgan Chase.

"DHFF and LISC Detroit are not only expanding affordable housing options for Detroiters but also empowering local talent and people of color to be at the forefront of building these spaces," said Tiffany Durr, Interim President, LISC Fund Management. "Through initiatives like the Developers of Color Grants, we're breaking down barriers for minority developers, ensuring that the benefits of these developments are felt across the community."

DHFF, a private investment fund aimed at directing capital to create new and preserving existing affordable housing in Detroit, is anchored by a $15 million commitment from JPMorgan Chase of the fund's total $58 million raise and a $10 million guarantee from The Kresge Foundation. DHFF is managed by LISC Fund Management, LLC, a subsidiary of Local Initiatives Support Corporation. LISC Detroit sources and originates loans for DHFF. DHFF is a part of the larger Affordable Housing Leverage Fund, which is an initiative with the City of Detroit's Housing & Revitalization Department and the Michigan State Housing Development Authority (MSHDA). Including the Ribbon, the DHFF has now funded 17 developments totaling 582 new or preserved affordable units in the city.

"Today, as we celebrate the grand opening of The Ribbon, we mark a significant milestone in our commitment to affordable housing and community revitalization," said Julie Schneider, Director of the City of Detroit's Housing & Revitalization Department. "This project, made possible by DHFF, the Strategic Neighborhood Fund and our dedicated partners, embodies our vision for a more equitable Detroit. With 18 new affordable units, we're not just building homes; we're fostering community and opportunity for our residents."

The Ribbon is also partially funded out of Detroit's Strategic Neighborhood Fund, a $150 million initiative launched in 2016 by Mayor Duggan and Invest Detroit with a focus on leveraging investments in four key areas: improving parks, streetscapes, commercial corridors, and single-family housing. All along the way, the plans are guided by resident input, empowering them to decide the future of their neighborhoods.

The fund was piloted with a $42 million investment in three initial neighborhood areas: Livernois/McNichols, Southwest/Vernor, and Islandview/Greater Villages. Two years later, the SNF initiative was expanded to seven more areas and funded by an investment of $5 million each from seven corporations: American Axle, Blue Cross Blue Shield of Michigan, Chemical Bank, Fifth Third, Flagstar Bank, Huntington, and Penske. Blue Cross Blues Shield of Michigan is the corporate sponsor for the East Warren/Cadieux area of SNF.

"We are honored to support The Ribbon and contribute to the revitalization of East English Village," said Ken Hayward, vice president and special assistant to the president for Community Relations at Blue Cross Blue Shield of Michigan. "At Blue Cross Blue Shield of Michigan, we know that affordable housing is a key component of healthy communities. This project has truly been community-driven, reflecting the voices and needs of local residents. We are proud to partner with them to make this vision a reality. Blue Cross Blue Shield of Michigan's ongoing commitment to the East Warren / Cadieux neighborhood underscores our dedication to fostering vibrant, thriving neighborhoods where everyone has the opportunity to succeed."

Community engagement is an important component of any project that falls under SNF. Neighborhood residents and organizations are consulted on projects, and the types of developments they feel would be most beneficial to the neighborhood.

"Edward Carrington embodies the kind of developer our community values. He prioritizes collaboration, ensuring that development on E. Warren Ave is happening with the community, not imposed upon it," said Joseph Rashid, executive director of East Warren Development Corp. "From hosting the farmers market at his site in 2020 to organizing community coffee hours and engaging residents through online discussions, Edward has consistently been attentive and responsive to the community's needs."

"The Ribbon is a prime example of SNF creating opportunities for emerging developers to design and build projects that reshape and impact their communities," said Jermaine Ruffin, SVP of Neighborhoods for Invest Detroit. "Edward Carrington's neighborhood-focused approach has resulted in a mixed-use development that genuinely reflects the input and needs of the East Warren neighborhood in an equitable, community-driven way."

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About Flux City

Built on a strong commitment to the community, Flux City utilizes the local talent of acclaimed architects and designers, fully licensed and prequalified general contractors, and an experienced management team to build, design and construct a wide variety of adaptable real estate projects. Flux City specializes in identifying and acquiring undervalued, and often overlooked, commercial and residential real estate that can be re-developed and leased or sold in order to bring the highest rates of return for its investors. Flux City has over 20 years of combined experience in building and revitalizing real estate in greater Detroit area communities.

About LISC Detroit

LISC Detroit is a local organization founded in 1990, within the Local Initiatives Support Corporation network that includes 38 offices in urban areas across the country as well as a rural office that serves more than 44 states. National LISC, founded in 1979, is the largest national community development financial intermediary, combining corporate, government, and philanthropic resources to help community-based organizations revitalize their neighborhoods.

LISC's mission is that every low-income community has the chance to thrive. LISC equips struggling communities with the capital, strategy, and know-how to become places where people can thrive. Working with local leaders we invest in housing, health, education, public safety, and employment - all basic needs that must be tackled at once so that progress in one is not undermined by neglect in another. Sharing our expertise of 41 years, we bring together key local players to take on pressing challenges and incubate new solutions. With them, we help develop smarter public policy. Our toolkit is extensive. It includes loans, grants, equity investments, and on-the-ground experience in some of America's neediest neighborhoods.

About the Detroit Housing for the Future Fund

Detroit Housing for the Future Fund (DHFF) is a mission-driven private investment fund with the primary goal of addressing the severe shortage of affordable housing in Detroit. DHFF is managed by LISC Fund Management, LLC, a subsidiary of Local Initiatives Support Corporation. LISC Detroit sources and originates loans for DHFF. DHFF is a part of the larger Affordable Housing Leverage Fund, which is an initiative with the City of Detroit's Housing & Revitalization Department and the Michigan State Housing and Development Authority. DHFF deploys flexible loan capital and private grants to complement and leverage public investment through the City of Detroit and Michigan State Housing Development Authority as well as tax credits and other existing affordable housing finance tools.

For more information on the Detroit Housing for the Future Fund and funding opportunities, please visit https://www.detroithousingforthefuturefund.org/ or https://www.liscstrategicinvestments.org/detroit-housing-for-the-future-fund

For investor inquiries and more information about LISC Fund Management, LLC, please visit https://www.liscstrategicinvestments.org/fund-management

About Invest Detroit

Invest Detroit is a mission-driven nonprofit lender, investor, and partner that supports business and real estate projects that will ignite economic growth in Detroit and the region. Their goal is to increase density and job opportunities in a way that is strategic and inclusive. Learn more at www.InvestDetroit.com.

About Blue Cross Blue Shield of Michigan

Blue Cross Blue Shield of Michigan, a nonprofit mutual insurance company, provides health benefits to nearly 5.2 million members. The company is committed to delivering affordable health care products through a broad variety of plans for businesses and individuals. Based in Detroit since 1939, BCBSM supports impactful community initiatives and provides leadership in improving health care across Michigan. BCBSM is an independent licensee of the Blue Cross and Blue Shield Association. For more information, visit BCBSM.com and MIBluesPerspectives.com.

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