It’s a case that has been making the rounds in the media for years now, and it’s a story that is getting more attention because it’s now happening in the Riviera condo market.
According to the Michigan Condo Association, condo association membership dropped from 6,000 to 2,400 in the first three months of 2017.
The association is urging condo owners to get out of the city.
“We are not going to let them get away with it.
We are telling you that the city is not going anywhere,” association president and CEO Tim Johnson said in a press release.
The association also released a list of recommendations to help condo owners deal with the condo market downturn.
It calls for an increase in home equity and rent subsidies, better access to financial planning and a better tenant-management system.
Johnson said the association is working to get the city to enact its own housing regulations, and that the condo industry is being unfairly targeted by the city for its low cost of living.
Detroit is a prime location for condos because it has a low cost-of-living, Johnson said.
There’s also been a resurgence in condo construction and rental listings in recent months.
The condo association is offering a 50 percent discount on a first-floor unit in the city, and a 15 percent discount for the middle of a second-floor condo.
Johnson said he’s hoping to get condo owners out of Detroit as soon as possible.
“We need to be very careful what we’re going to say about this and what we do and don’t do,” he said.
“It’s very difficult to predict how the condo business is going to change.
The industry is in a great spot right now and the industry needs to take advantage of that.”
“If they do, they’re going away.”
In response to the condo association’s call for action, the city has responded with a series of initiatives that have been criticized for being too soft on the condo owner.
The city has offered discounts on first- and second- and third-floor condos, which are both affordable.
And the city also has launched a pilot program for renters in a low-income housing project.
Meanwhile, Johnson, along with other condo association leaders, is working with city officials to try and address the issue of the condo rental crisis.
This summer, the Detroit Redevelopment Authority launched the Detroit Housing Opportunities Commission, a nonprofit organization that will assist owners and renters in navigating the condo marketplace.
A spokesperson for the city said the commission’s job is to “provide a roadmap for the development of a cohesive citywide rental market.”
The spokesperson also said the city plans to work with the association to address rental affordability in the future.
“This will include a strategy to address housing affordability through the development and distribution of affordable rental housing in underserved neighborhoods, which is important to ensure that those people can afford to live in Detroit,” the spokesperson said.
“This will also include an assessment of the current rental market, which will help inform our decisions as we move forward with the development plans for the Redeemed Detroit area.”
Read more at the Detroit News, Business Insider, and ABC News.