Detroit Council reviews $42.5M HRD budget; mayor, administration push infill and preservation

Detroit City Council on March 26 heard the Housing and Revitalization Department’s proposed fiscal 2026–27 budget, with Director Julie Schneider telling members the $42.5 million plan refocuses HRD on housing development and preservation and aims to accelerate infill construction across the city.

Schneider opened the presentation by describing an organizational change that separates housing development functions from service‑oriented homelessness and family services and said the department will concentrate on predevelopment support, financing and asset management. “We are pleased to be here today to present the proposed 2026–27 fiscal year budget for the Housing and Revitalization Department,” Schneider said in her opening remarks.

The presentation laid out headline numbers and funding streams: Schneider cited an overall proposed HRD budget of about $42,500,000; she said HOME funding is approximately $6,100,000, and identified a proposed $4,000,000 allocation to the Affordable Housing Trust Fund and related preservation and development funds. HRD also noted $28,000,000 of CDBG disaster‑recovery funds that remain to be awarded to projects. Schneider said the budget excludes one‑time grants HRD manages directly.

The administration tied the budget to production and preservation goals. Schneider said HRD expects to preserve roughly 2,000 existing affordable units in the coming year — about 600 more than the prior year — and that about 600 affordable units are set to start construction this year using newly available Section 108 funding. “We’re set to see 600 affordable housing units set to start construction this year,” she told the council.

David Bowser, the mayor’s chief of staff, framed the budget as part of the administration’s broad push to make homeownership and affordable rental options more available to Detroit residents: “Housing has been a number‑one need that’s been expressed over the years,” Bowser said, noting new cross‑agency coordination to reduce permitting timelines and align utilities and infrastructure work with infill development.

Council members pressed HRD on policy tools and tradeoffs. Several members asked about the pilot programs cited by HRD, including the payment‑and‑move taxes pilot (launched June 2025) and the PRO Housing grant, which HRD said will support small building development (two‑ to eight‑unit buildings) and pre‑permitted designs. Schneider said HRD is preparing an RFP for pre‑permitted designs and will start with a limited set (about eight designs) to speed approvals and reduce construction costs.

Members also queried the department on how the budget will support enforcement and long‑term asset management as the city’s affordable housing stock expands. On compliance and asset oversight, Schneider said HRD will retain asset management duties even as some grant‑compliance functions move to the city’s OCFO; HRD plans to expand compliance inspections and maintain contracts that handle sensitive tenant data and income verification.

The council did not vote on the HRD budget during the hearing; instead, members placed multiple related items into the closing resolution and executive session for further action and funding decisions.

Looking ahead, Schneider said HRD will continue to refine the infill strategy, coordinate with utilities and planning partners to reduce infrastructure and permitting costs, and use a mix of local, federal and philanthropic sources to leverage federal declines in housing dollars. “It’s going to require a great deal of coordination and collaboration,” she said.

The council agreed to resume budget work in subsequent hearings and to fold several HRD items into the closing resolution and executive session for additional language and potential funding allocations.