Richard Hosey – Developing Companies, People, as Well as Projects

Kim Kisner
April 30, 2024
Business

The career of Richard Hosey, owner of Hosey Development LLC, has spanned development, consulting, financing, and asset management of more than 75 projects in Detroit totaling over $2.5 billion in development costs.

His most recent undertaking is the renovation of the former Fisher Body 21 plant, a $134 million project that will preserve and redevelop the plant into approximately 435 rental apartments; 38,000 square feet of commercial space; outdoor and indoor amenities; and up to 139 interior and 646 adjacent surface parking spaces. At least 20% of rental units will be affordable for those earning no more than 80% of the area median income ($51,200 or less for a two-person household).

SBN Detroit spoke to Hosey about his work and his impact on sustainability in Detroit.

Q: Tell us about Hosey Development.

A: I’ve been in real estate since 1996, and then I worked for Bank of America from 2005 to 2013 investing in urban development. That job brought me back to Detroit in 2008. I remember arguing with a city councilperson on why the Lafayette Building should not be torn down, and that it should be invested in and rehabbed. She said to me, ‘Would you do it?’ and I thought, yes, I need to stop complaining and start doing something. I started with the Kirby Center Lofts, which was an old Hebrew School in Midtown, and then it became a process after that.

Q: Talk about preserving affordable housing in Detroit and how you work to do this.

A: In 2008, the city was only building affordable housing, which created concentrated poverty.

On the other hand, as the market rate takes off, we need to ensure that it’s reasonably and rationally balanced so housing doesn’t become unaffordable. Revitalization tends to push out affordability, but the City of Detroit has an affordability requirement inside every project to ensure this doesn’t happen.

I love the work of the Detroit Land Bank. Affordable housing should not just be apartment living. With programs like Rehab and Ready, they are going into neighborhoods and driving change.

Q: You provide financing for your subcontractors. Can you tell us about that?

A: I focus on employing Detroiters. Detroit has plenty of construction talent, but there are not plenty of contractors with the capacity to carry a big job. There is an upfront economic load that comes with larger jobs, such as purchasing materials and paying for labor that many – most – construction companies in Detroit can’t shoulder.

For my first project – the Kirby Center – I started thinking what if I carry the job? I then met Mel Washington, a local developer who walked me through the process of doing so.

Now, my partner and I are using this same concept on the Fisher 21 project. We are using companies that have the skills and the organization to do a big job like this but can’t buy $1 million in HVAC equipment upfront and get paid later. So we do that part.

Fisher Exterior1 — FISHER 21 PROJECT EXTERIOR

It’s been great working this way. We get Detroit companies who do great work.

Q: How do you think sustainability plays into what you do?

A: As we build up the ecosystem such that our contractors in Detroit are getting the jobs, the economics go in a circle. Good-paying jobs mean the workers buy homes here, buy cars here, and spend their money here. That’s the ideal model.

For a lot of years, construction companies would come into the city, make their money, and go back to their homes in Oakland County or Macomb County. The key is to keep it in Detroit so the dollars stay in the community and circulate.

From an environmental standpoint, rehabbing a building versus tearing it down is much better for our planet. The challenge comes with being good to the tenant while being good to the planet. For example, we can put in huge beautiful windows, but how high is the electric bill going to be? We then need to find solutions for the most efficient furnace so the tenant isn’t impacted by a huge expense.

Q: The redevelopment of the Fisher plant is the largest Black-led development in the city. What is the importance of this?

A: I want this to become the everyday normal. So many processes focus on the idea that there is no talent or capacity in Detroit.

I hope to be able to show that larger projects can be handled by Black and Brown teams. We still have a long way to go. The Fisher project at $135 million is just 3% of the $5 billion in development announced in the last twelve months. But I hope to build a model for black funders and black talent to come together.

Q: What is the future of Hosey Development?

A: I will be in this market for the long run. I picture myself exclusively in Detroit except for one thing – mentoring new and existing developers. Again, I will feel more successful when more Black and Brown people and women are involved in development in the city.

And it’s happening. Many small and midlevel Black and Brown developers are coming into Detroit in ways you don’t see in other cities. Diverse developers are landing here because they can get a foothold. Preserving that should be a priority.

Removing barriers and growing talent based on ability as opposed to inherited wealth is one of the most important things we can provide in this market.

Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

Kim Kisner

With over 25 years of experience in the development and execution of strategic branding, content planning, and copywriting for brands such as Gatorade, Ford Motor Company, and Under Armour, and published by SEEN Magazine, The Jewish News, and countless health and lifestyle journals and blogs, Kim helps companies, brands, and people tell their stories.

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Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

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October 7, 2025 No Comments

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Working to Build a Lower-Carbon Auto Industry

October 1, 2025 No Comments

Magna International is one of the world’s largest automotive suppliers, with more than 350 manufacturing sites and engineering centers globally, including a strong presence in Southeast Michigan. The company plays a critical role in shaping the future of mobility, from advanced materials to vehicle systems, while also driving ambitious sustainability goals across its supply chain. Validated by the Science Based Targets initiative, Magna’s commitments include cutting emissions, embedding circular design principles, and working with thousands of suppliers worldwide to achieve net zero. SBN Detroit interviewed Ahmed Elganzouri, Magna’s Global Director of Sustainability and Energy, about the challenges, milestones, and opportunities that come with advancing sustainability in the auto industry. Q: Magna has committed to addressing Scope 3 emissions via supplier engagement. What are the biggest challenges you’ve encountered in getting suppliers to commit to decarbonization, and how are you overcoming them? A: The challenge is scale. We work with thousands of suppliers across the globe, and each of them is at a different stage in their sustainability journey. Some have already set ambitious climate targets and are reporting progress transparently, while others are just beginning to build the internal capability to measure their own emissions. What we’ve found is that education and collaboration are key. We can’t simply mandate change—we have to support suppliers with tools and data. Our approach is to set clear expectations, share best practices, and partner with those who want to learn. It’s not always easy, but we believe that raising the bar across the entire value chain is essential if the industry is going to reach net-zero. Q: Can you walk us through the roadmap Magna has developed for achieving net-zero, particularly for Scope 3? What are the key milestones and metrics you’re tracking to hold yourselves and your suppliers accountable? A: Magna’s net-zero target is validated by the Science Based Targets initiative, which gives us both credibility and accountability. We’ve already set near-term goals to cut our Scope 1 and 2 emissions by 42% by 2030 from a 2021 baseline, and for Scope 3 we’ve committed to a 25% reduction by 2030. Scope 3 is more complex since it includes purchased goods, use-phase vehicles and end-of-life treatment. To drive progress, we’ve established clear milestones: Supplier engagement: Beginning this year, suppliers are required to provide ESG (human rights and labor) reporting, with carbon reporting becoming mandatory next year. Transform Auto program: We’ve launched this initiative to bring renewable electricity procurement options directly to suppliers, making it easier for them to decarbonize. Carbon and ESG data collection: We’ve transitioned from CDP supply chain reporting to more targeted tools—M2030 for carbon data and the NQC SAQ survey for ESG performance. Sustainable materials: We’re rolling out a strategy that advances the use of low-carbon, bio-based, and recycled materials, while also prioritizing end-of-life recyclability. Target-setting: We continue to encourage and track the number of suppliers setting SBTi-aligned targets. Q: What are examples of how design for disassembly is being implemented, so that products are easier to recycle or repurpose? A: We see materials innovation as one of the most exciting levers for reducing our footprint. For example, we’ve developed EcoSphere foam and trim for seats, which combines recycled and bio-based content without sacrificing performance. Another example is our natural fiber door carrier, which replaces glass fibers with renewable fibers while maintaining structural integrity. On design for disassembly, our engineers are looking at modular systems that simplify end-of-life separation. In our seating division, for instance, we’ve developed concepts where metal, plastic, and foam can be detached more easily, enabling higher-quality recycling. It’s about thinking through the full lifecycle from the earliest stages of design—not just how something performs in the vehicle, but what happens to it when the vehicle’s life is over. Q: What do you see as the biggest industry-wide challenges to sustainability right now? A: The biggest challenge is alignment. The auto industry is global, and the pace of change varies dramatically across markets. Some regions move quickly with aggressive regulations and incentives, while others lag. That makes it difficult to scale sustainable technologies at speed and cost. Another challenge is access to renewable energy—manufacturers can only decarbonize so much if the grids we rely on are still carbon-intensive. And finally, financing the transition is no small feat. Electrification, new materials, and circular processes all require upfront investment. The industry has to work together—OEMs, suppliers, governments, and investors—to share that risk and accelerate the payoff. Q: What role do machinery upgrades and optimization of equipment play in energy-efficiency planning? A: A big role. Roughly two-thirds of our manufacturing emissions come from energy use, so making our operations more efficient is critical. That can be as simple as retrofitting lighting and HVAC systems, or as complex as upgrading presses, welders, and paint shops to consume less energy. We also run a global energy management program that identifies and shares best practices across our 350+ sites. On top of that, we’ve built into our operations requirement (MAFACT) a roadmap for how each division will decarbonize its heavy-emitting equipment and outline the challenges they face so we can provide targeted support. Q: How does integrating circular economy principles into product design interplay with cost, manufacturability, and performance? Circularity must work in the real world. That means balancing sustainability goals with safety, quality, and cost requirements. The lesson is that circularity doesn’t have to be at odds with manufacturability or cost—it can actually unlock efficiencies and open new markets. The key is embedding these principles early in the design phase so they aren’t seen as add-ons later. Q: How do changing global regulations and consumer expectations around sustainability affect your strategy? A: Regulations and consumer expectations are both accelerators. Increasingly, consumers want vehicles that reflect their values, and regulators are setting ambitious targets that raise the floor for the entire industry. For Magna, that’s an opportunity: we can differentiate by delivering sustainable innovations that help our customers meet or exceed those expectations. As for policy, we’d welcome more harmonization. Right now,