Tax reform could hit Detroit redevelopment hard
In November 2013, just four months into Detroit’s bankruptcy, law enforcement agencies raided the long-troubled Colony Arms Apartment on Jefferson Avenue, arresting 33 tenants who were wanted for a litany of crimes.
The headline-grabbing raid came as city officials were pushing for redevelopment of the 161-unit apartment complex that Detroit Police Chief James Craig said had become a hotbed for drug and criminal activity.
Cinnaire Corp., a Lansing-based housing development firm, bought the property and spent $25 million on renovations that were completed in January of this year. Cinnaire renamed the 93-year-old complex River Crest Apartments.
About $10 million of the renovation cost was subsidized by historic rehabilitation and low-income housing tax credits — federal incentives Congress may chop as lawmakers debate a massive overhaul of the U.S. tax code with the goal of lowering rates on corporations and individuals.