DEVELOPMENT: What policies should I be aware of in order to successfully do development in Detroit?
As the city grows, we have created policies to ensure a One City. For All of Us. To support this vision there are several policies that effect development:
- Inclusionary Housing
- Community Benefits Ordinance
- Local Hiring Executive Order
In 2016, the Detroit City Council adopted an ordinance to establish requirements for the inclusion of affordable rental units in residential projects that receive some form of direct financial assistance from the City. The ordinance is intended to promote the development of economically integrated housing opportunities with affordable units made available to Detroit’s low - and very low-income households earning 50-80% of the Area Median Income for a term of 30 years.
The full text of the ordinance, including relevant definitions, specific transactions that are subject to the ordinance, and enforcement information, is available here.
Community Benefits Ordinance
In the November 2016 election, voters approved a Community Benefits Ordinance to ensure “community outreach and engagement that promotes transparency and accountability and ensures development projects in the City of Detroit benefit and promote economic growth and prosperity for all residents.”
There are two classes of development projects that are subject to this ordinance:
- Tier 1: Total investment of $75 million, with at least one of the following:
- Sale of City-owned property valued at $1,000,000 or more without open bidding and priced below market rate
- Tax abatements totaling more than $1,000,000 over the term of the abatement
- Tier 2: Total investment of $3 million, with at least one of the following:
- Sale of City-owned property valued at $300,000 or more without open bidding and priced below market rate
- Tax abatements totaling more than $300,000 over the term of the abatement
The full text of the ordinance is available here.
The Planning and Development Department maintains a website summarizing the Community Benefits Ordinance process for active projects is available here.
Local Hiring Executive Order
It is the City of Detroit’s policy to encourage and maximize the employment of Detroit residents on publicly-funded (in whole or in part) construction projects by requiring that all City of Detroit construction contracts provide that at least 51% of the hours worked on the project must be Detroit residents based on the total number of work hours.
The City of Detroit offers assistance with recruiting and hiring Detroit residents to employers. The City also offers free training programs and support services to jobseekers. For more information or assistance with recruiting and hiring efforts, refer to Detroit At Work
For assistance complying with local hiring requirements, refer to the Department of Civil Rights, Inclusion, and Opportunity