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Detroit Mayor Mike Duggan on Tuesday announced a new fund to address housing instability in Detroit that would offer developers low-interest loans, private grants and other financial tools to preserve and create affordable housing. 

The public-private partnership begins with an initial investment of $48 million, which includes a $15 million commitment from JPMorgan Chase and $10 million guarantee from the Kresge Foundation. The overall goal is to raise $75 million.

“If you want to hold rent low enough that people of low income can afford it, but your housing costs to build are the same as every place else, you lose money,” Duggan said. “Nobody is going to build apartment units where the cost of building it costs more than they get back.” 

The partnership — called the Detroit Housing for the Future Fund — will finance housing for residents whose income is at or below 60% of the