Bowin Place

Jonathan Rose Companies purchased Bowin place in Detroit, MI in partnership with the not-for-profit Community Opportunity Fund in July 2022 to preserve the affordability of the 193-unit HUD project-based Section 8 community for low-income seniors. The project included an $8.3 million capital transformation of the 11-story 193-unit high-rise building that substantially renovated all existing units and building systems.

The property’s Section 8 contract was renewed for the maximum term of 20 years, and 100% of units will remain affordable to seniors earning 60% of AMI and below.

The project was financed through allocation of federal 4% LIHTCs, issued by the Michigan State Housing Development Authority (“MSHDA”), in conjunction with tax-exempt bonds also issued by MSHDA. The Huntington Community Development Corporation served as the federal LIHTC investor providing $8.1 million of total equity, as well as a $5.5 million equity bridge loan. Capital One Multifamily Finance originated an FHA Heavy 223(f) first mortgage of $13.6 million, cash-collateralizing the multifamily housing revenue bonds. 

The project team took input from the residents themselves through on-site resident information sessions, working with them to identify key scope concerns. With support from the Department of Housing and Rental Development, the City of Detroit granted the project a new 40-year tax abatement.