Revitalization and Placemaking (RAP) 2.0 Program

Geographic Scope: Michigan (administered by Michigan Economic Development Corporation - MEDC); Detroit as a primary beneficiary region

Program Administrator: Michigan Economic Development Corporation (MEDC)
Detroit Administrator: Detroit Economic Growth Corporation (DEGC)

Program Focus

The RAP 2.0 program provides access to real estate and place-based infrastructure development gap financing through grants. It is designed to:

• Support real estate rehabilitation and development
• Fund public space and place-based infrastructure improvements
• Enable local/regional partners to develop subgrant programs
• Provide gap financing to move projects forward
• Support mixed-use development projects
• Enable affordable housing creation
• Support historic renovation and adaptive reuse
• Promote inclusive growth across Michigan's 10 prosperity regions

Award Categories

1. Real Estate Project Grants: Up to $5 million per project
2. Public Space Infrastructure Grants: Up to $1 million per project
3. Subgrant Program Grants: Up to $20 million to local/regional partners

Eligible Projects

• Mixed-use development projects
• Commercial space development
• Residential housing (market-rate and workforce/affordable)
• Historic renovations and adaptive reuse
• Public space improvements

Selection Criteria for Detroit Projects

Developers were selected based on:

• Project location and strategic alignment with Detroit priorities
• Readiness to proceed with construction
• Organizational capacity of developer
• Long-term community impacts
• Financial viability
• Local and regional strategic alignment
• Preference given to:
  • Mixed-use/mixed-income housing projects
  • Historic renovation and adaptive reuse
  • Emerging and minority developers
  • Projects with demonstrated site control

Detroit Implementation

DEGC administers RAP 2.0 projects in partnership with:

• City of Detroit's Housing and Revitalization Department
• Mayor's Office Jobs and Economy Team (JET)
• City's Grants Management Office

Funding Mechanism

Gap financing is provided as reimbursable grants to developers as phases of their projects are completed. DEGC remains actively engaged throughout construction to verify expenditures and ensure project completion.

2024 Detroit Example Projects (January 2024 Award)

Detroit received $14.5 million in RAP 2.0 grants for five major mixed-use development projects:

1. Broadway Lofts - $4.275 million

• Location: 1322-1332 Broadway Street
• 80 residential units (studios, one-bedrooms)
• 20% offered at affordable rates (60% AMI)
• Ground-floor retail space
• Developer: Roger Basmajian/Basco Detroit

2. Fisher 21 Lofts - $4.750 million

• 433 residential units (mixed types)
• 63 units income-restricted affordable housing (60 at 80% AMI, 3 two-bedrooms at 50% AMI)
• 26,700 sq ft retail space
• 17,685 sq ft co-working space
• Developers: Gregory Jackson and Richard Hosey

3. The Arthur Murray Building - $2.128 million

• Location: 16621-16653 E. Warren Ave.
• Historic renovation of first Arthur Murray Dance Studio franchise location
• 32 residential apartments
• 7,900 sq ft ground-floor retail
• Total project cost: $14.9 million
• Developer: Emery Matthews/Real Estate Interests, LLC

4. Jefferson Intermediate School - $1.425 million

• Location: 950 Selden Street and 960 Frank Street
• Multi-tenant office and innovation/co-working space
• Headquarters for Invest Detroit
• Total project cost: $44.4 million
• Developer: Midtown Detroit, Inc. and Invest Detroit

5. The Deco - $1.197 million

• Location: 16703 E. Warren
• Historic renovation of vacant two-story commercial building
• 6 new rental apartments
• Ground floor restaurant (La Jalisciense Taqueria)
• Total project cost: $4 million
• Developers: Brandon Hodges and Damon Dickerson/TRIBE Development

Broader Impact

• October 2023: MEDC approved $99.2 million in RAP 2.0 grants across Michigan's 10 prosperity regions
• Focus on inclusive development with majority of Detroit projects led by African American developers
• Addressing historical barriers to capital access for minority developers in real estate

Application Process

Administration: MEDC administers the RAP 2.0 program with local implementation by DEGC in Detroit.

Application and Selection Process:

1. Developers submit proposals through MEDC RAP 2.0 application process
2. Projects are evaluated based on published selection criteria
3. DEGC works with the City of Detroit to identify strategic projects aligned with local priorities
4. MEDC approves final projects for funding
5. DEGC manages implementation and compliance

Key Application Requirements:

• Demonstrated project readiness to proceed
• Evidence of site control
• Detailed financial viability analysis
• Organizational capacity documentation
• Plans for community impact and long-term sustainability
• For preference consideration:
  • Mixed-use/mixed-income design
  • Historic preservation/adaptive reuse plans
  • Developer diversity documentation
  • Community benefit documentation

Project Administration Post-Award:

1. DEGC monitors project progress
2. Funds reimbursed to developers as project phases are completed
3. DEGC verifies expenditures and compliance
4. City officials remain engaged throughout construction

Required Partners:

• City of Detroit Housing and Revitalization Department
• Mayor's Office Jobs and Economy Team
• City Grants Management Office