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.

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Posted Under: CBOR News