AP Photo Detroit Pistons forward Tobias Harris runs down the court during Pistons' game last season.

DETROIT — The Michigan State Housing Development Authority (MSHDA) is teaming up with the Detroit Pistons’ forward Tobias Harris Homeownership Initiative (THHI) on a new shared-appreciation mortgage pilot with Guild Mortgage and Homium.

The partnerships could make homeownership more accessible to Detroiters through a partnership between private capital and state government.

The program is being championed by Detroit Pistons basketball veteran Tobias Harris.

The mortgage product will provide qualified borrowers with up to 40% of a home’s purchase price in down payment assistance (DPA) without adding any monthly debt. This structure allows borrowers to secure a conforming first mortgage without the need for mortgage insurance, resulting in a lower monthly payment. Instead of a monthly repayment, upon sale or refinance, the borrower repays the initial down payment assistance plus a share of the market appreciation.

“This new partnership will help make the dream of homeownership a reality for more Detroiters, offering the kind of affordable support that leads to long-term housing stability,” said Amy Hovey, CEO and Executive Director of MSHDA. “We’re moving quickly to identify new partners and programs that can help lower costs and unlock opportunities for Michigan families.”

Initial funding for the pilot is being provided by MSHDA, as well as philanthropic grants from Harris, former Pistons teammate Jon Leuer, Pistons owner Tom Gores, made to the program’s nonprofit partner, Realize Impact.

“Homeownership is one of the most powerful ways to build stability and generational wealth,” said Harris. “With this initiative, I’m focused on expanding access to homeownership so Detroiters can plant roots and build equity in the city they call home. This is just the start, and I look forward to working with others throughout Detroit’s business and philanthropic community to grow and sustain this important program.”

Housing data underscores the need for the pilot. Since 2013, the median household income in Michigan increased by 36%, while the housing sales price index increased by 101%. That disparity means the average two-person household in the state with an income of 120% of the area median cannot afford to purchase the median priced home.

In Detroit, 59.5% of households spend more than 30% of their income on rent, making an increased homeownership rate an especially impactful tool to stabilize monthly costs and provide household stability.