In the narrative of Detroit’s rebirth, one name quietly echoes through the corridors of its most beautiful, once-forgotten buildings: Kathy Makino-Leipsitz. As President and Managing Partner of Shelborne Development, Kathy Makino Leipsitz has spent more than three decades transforming the cityscape, not through headlines or flashy developments, but through deeply intentional, people-first projects that blend historic preservation with affordable housing innovation.
Since its founding, Shelborne Development has helped to build and rehabilitate more than 2,000 housing units across Southeast Michigan, with a special focus on reviving over 30 vacant historic properties in Detroit alone. But for Kathy Makino Leipsitz, it all started with a student’s curiosity and a duplex in Westland, purchased while attending the University of Michigan. That early interest soon matured into a lifelong mission—to restore dignity and opportunity through real estate.
“At the heart of everything I do is the belief that affordable housing doesn’t have to mean substandard housing,” Kathy shares. Leveraging the Low-Income Housing Tax Credit (LIHTC) program, Shelborne’s work has helped rewrite the story of “low-income housing” in Michigan. Kathy has consistently delivered developments that offer granite countertops, stainless steel appliances, and modern amenities—all at rents tied to 30% of residents’ income, serving families between 20%–60% AMI, now extended up to 80% AMI.
But Kathy’s passion is more than professional—it’s personal. Having grown up in a household rocked by her father’s sudden disability, she understands firsthand the emotional and financial impact of income insecurity. That formative experience shaped her life’s mission: to create housing that uplifts, where families feel empowered, not diminished.
“Everyone, especially children, can become victims of financial circumstances that are entirely outside of their control,” she says. “When you give people housing they can be proud of, you give them a foundation to rise again.”
Today, Kathy continues to reshape Detroit’s neighborhoods with dignity, beauty, and equity, proving that the future of urban development lies not just in steel and concrete—but in compassion, purpose, and legacy.
Improving Blighted Neighborhoods
One of the greatest challenges in revitalizing blighted neighborhoods, according to Kathy, is helping the public truly grasp the complexity and time-consuming nature of these efforts—particularly when it comes to assembling the intricate capital stack required to bring vacant buildings back to life.
“People often underestimate how difficult it is to finance the rehabilitation of historic structures,” she explains. “It’s not just about vision—it’s about aligning public and private funding, navigating regulatory frameworks, and managing construction hurdles that are unique to older buildings.”
Despite these obstacles, Kathy remains a steadfast advocate for preservation over demolition. She points to growing bodies of research that confirm the economic, environmental, and cultural benefits of restoring existing structures. “More often than not, we are far better off rehabilitating vacant historic buildings rather than opting for new construction,” she notes. “These buildings have stories, character, and a lasting value that new developments often struggle to replicate.”
The reward, she says, lies not only in the bricks and mortar but in the transformation of entire communities—turning once-forgotten spaces into vibrant, thriving centers of life, commerce, and connection.
Power of Pairing Historic Rehab with Clean Energy Innovation
Over the years, Kathy has come to see that the sweet spot in sustainable development lies in the intersection of historic preservation and cutting-edge energy upgrades. “It’s a double win,” she says. “When we combine historic rehabilitation with state-of-the-art energy solutions, we not only preserve the cultural and architectural value of our buildings—we also dramatically reduce energy costs, which can help keep rents more affordable. And just as important, we see an immediate and measurable impact on climate change.”
Historically, the greatest challenge has been financial. High-impact energy systems like geothermal, solar, co-generation, and wind were often too costly to justify in redevelopment budgets. “It simply didn’t pencil out,” she admits. But that’s finally changing.
