Detroit Creates Tiny Home Community For Low Income Renters
Tiny homes are becoming an increasingly popular trend. They are affordable and allow owners a nomadic lifestyle without being tied down to a specific location and mortgage.
Millennials are drawn to living tiny since the housing market entered crisis mode, forcing many to spend nearly half their income on rent.
But aside from the freedom and affordability tiny homes are serving millennials, there is another use for tiny living that just might solve some of the country’s current housing issues.
Since late 2016, a project has been in the works in Detroit, MI, to create a tiny home neighborhood. The goal is to allow former homeless and low-income qualifiers to rent and own a home.
The tiny neighborhood is part of a project created by Cass Community Social Services, a Detroit-based nonprofit organization. The project is funding the construction of 25 tiny homes, 16 of which have already been built, according to Business Insider.
The homes range from 250 square feet to 400 square feet, and will become home to those who were formerly homeless, seniors, and college students. Cass staff members will also occupy some of the homes, according to Business Insider.
But the real win for the project is that it’s set up for renters to eventually own their tiny house. Those who rent for seven or more years basically own their tiny home based on how the rentals are set up.
For the first three years, renters will sign a year lease with their monthly rent totaling no more than a third of their monthly income.
Renters can then sign a land contract that totals the remaining amount of the home and property which is to be paid off in payments over the next four years. Once the renter pays that off, they are the legal owner of their tiny home.
It’s one of the first methods set up where rent actually buys the renter their home, and only after seven years. The neighborhood is expected to be completed by the end of 2017.
To take a look at the neighborhood and some of the homes check out the video by In The Know.