Detroit is getting a neighborhood of tiny homes that homeless people rent to own
Tech Insider
Dana Varinsky 23 hrs ago
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Cass Detroit tiny home
Tiny homes are being built around the country for a variety of reasons — some are designed for affordability, others are prefabricated to be constructed quickly, and some are made by people who simply choose to live a minimalist lifestyle.
In Detroit, an entire neighborhood of tiny houses is under construction, with one primary goal: giving homeless and low-income people the opportunity to own a house.
A local nonprofit organization called
Cass Community Social Services is spearheading the project, which will build 25 single-family homes ranging from 250 to 400 square feet. The first house was completed in September, and six more are expected to be built by the end of the year.
At least half of the 25 houses will be occupied by formerly homeless people, with seniors, college students and Cass staff members making up the rest of the population.
The concept of providing tiny houses for low-income people isn’t new — San Jose, California recently
passed a law to facilitate the construction of tiny homes for the homeless, and many other cities, including Austin, Texas and Portland, Oregon have
created villages of tiny homes for the homeless. These initiatives are
supported by research that suggests the most efficient way to combat homelessness is to simply provide those living on the streets with homes.
But the Detroit model is different for an important reason: It's the only tiny house community in the country where residents rent to own.
"Everybody is talking right now about ending homelessness, but really the goal for this project is to end poverty for these families," Reverend Faith Fowler, the executive director of Cass, tells Business Insider.
When they move in, residents will start by signing a one-year lease with a stipulated rent that amounts to no more than one third of their monthly income. They'll continue to sign new annual leases for their first three years in the home (as long as they pay rent on time and comply with the rest of the terms).
After three years, they’ll be invited to sign a land contract that amounts to the total rent for four subsequent years. After paying that off (seven years after moving in), the resident will legally become the owner of the land and home. Their rent will have essentially bought them the house.
Fowler says the hope is that the homes can become cushions the residents can fall back on in times of crisis, and can allow them to take out loans with better interest rates.
"You have something to leave on generationally in your family, which is part of the American Dream," she says. ..
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