Wellspring Apartments Breaks Ground in Southfield, Michigan
72-unit affordable housing community to provide permanent supportive housing for individuals and families in recovery.
Community leaders, housing advocates, and public officials gathered in October to celebrate the groundbreaking of Wellspring Apartments, a new 72-unit affordable housing development in Southfield, Michigan, designed to serve individuals and families in recovery from substance use disorders.
Held at the future site on Hooper Boulevard, the event marked a major milestone for a city that has prioritized equitable access to housing and health-centered community development. Wellspring Apartments will include 60 units of permanent supportive housing for individuals and families recovering from addiction and 12 affordable townhomes for families earning less than 60% of the area median income (AMI).
The project is led by MiSide Community Impact Network in partnership with the Southfield Nonprofit Neighborhood Corporation, City of Southfield, and Cinnaire, and is supported through a Low-Income Housing Tax Credit investment from Huntington Bank. Residents will benefit from on-site services and wrap-around support provided by MiSide.
“The City of Southfield is proud to be a partner in bringing Wellspring to our community,” said Mayor Kenson Siver. “This development is not just about building housing—it’s about building hope, stability, and opportunity for families and individuals who need it most. Wellspring will provide safe, supportive homes where residents can recover, grow, and thrive as valued members of Southfield.”
The total development cost for Wellspring Apartments is $33,230,056. Funding for the project is made possible through a diverse mix of public and private sources, including a $3.2 million MSHDA Tax-Exempt Bond Financed Permanent Loan; $11 million in Low-Income Housing Tax Credit equity with Huntington Bank as the investor; $2 million from the Michigan Department of Health through Opioid Settlement Funds; $2.6 million in funding from Oakland County; $89,807 in Solar Tax Credits; and a $1.3 million contribution from the Southfield Nonprofit Neighborhood Corporation.
Construction is being led by O’Brien Construction, with project completion anticipated by December 2026.
“Wellspring is more than a development—it’s a critical response to the opioid crisis and affordable housing shortage,” said Mark McDaniel, President & CEO of Cinnaire (photo to right) emphasizing the need for integrated housing and recovery support in communities most affected by the opioid epidemic. “This project shows what’s possible when communities come together with purpose.”
Wellspring Apartments is being developed in two phases, with modular construction planned to accelerate delivery. Beyond housing, the development will offer residents access to MiSide’s full range of services, including mental health care, job training, financial coaching, and youth programming.
Fred Zorn, City Administrator, added, “Wellspring is a model of collaborative development focused on people, public health, and equity. Together, we are addressing a critical regional need for recovery-focused and affordable housing. This project will have a lasting impact by strengthening families, improving public health outcomes, and ensuring Southfield continues to be a welcoming and inclusive place for all.”
The Michigan State Housing Development Authority (MSHDA) is supporting this partnership through an award of Low-Income Housing Tax Credits and other critical investments that help Southfield provide equitable access to housing and take a bold step toward health-centered community development.
“Wellspring Apartments represents the kind of comprehensive, community-driven housing solution Michigan needs more of,” said Amy Hovey, CEO and Executive Director of MSHDA. “By pairing permanent supportive housing with recovery-focused services and affordable housing units for families, this development will soon offer residents the stability and dignity they deserve as they work toward rebuilding their lives.”
The event also included remarks from Oakland County Executive Dave Coulter, Mike Hirst of Andy’s Place, and CNS Lighthouse, a human services partner.
“The lack of affordable housing is a real problem across Oakland County and projects like this are a perfect fit for the county’s Housing Trust Fund, Oakland County Executive David Coulter. “It will provide a holistic environment for people in recovery, combining a welcoming, affordable place to live with the services and programs they need right here on site.”
Michigan reported nearly 3,000 overdose deaths in 2023, underscoring the urgent need for recovery housing. Wellspring responds directly to this crisis by combining safe, affordable housing with long-term support services to reduce relapse and improve outcomes for families.
Dr. Natasha Bagdasarian, Michigan’s Chief Medical Executive, spoke to the project’s alignment with the state’s public health priorities.
“Wellspring Apartments represents the kind of innovative, community-based solution we need to support individuals in recovery from substance use disorder,” said Dr. Natasha Bagdasarian, chief medical executive. “This project reflects our commitment to addressing substance use disorder through comprehensive, community-driven solutions. By bringing together safe housing and essential support services, Wellspring creates a pathway to healing and stability for individuals and families on their recovery journey across the state.”