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.

More From SBN Detroit

Advancing Sustainability

October 7, 2025 No Comments

Ann Arbor-based NSF is a 501(c)(3) nonprofit that develops public health standards and provides auditing, certification, and training across industries ranging from food and water to consumer products and manufacturing. Its work often intersects with sustainability, helping businesses measure environmental performance and verify progress toward their goals. SBN Detroit interviewed Justin Brown, senior manager of sustainability & product verification at NSF, about the challenges companies face in advancing sustainability, the opportunities emerging in Southeast Michigan, and the role of credible verification in driving meaningful progress. Q: NSF is well known for setting public health standards globally. How do you translate that expertise into helping businesses meet sustainability and environmental goals? 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Q: What advice would you give to Southeast Michigan companies that want to prepare for future sustainability expectations from regulators, customers, and investors? A: Start by developing a deep understanding of your current practices, products, and services, and identify where the gaps are relative to both current regulations and emerging expectations. Then, build in measurable tools to track and verify progress. Regulators, customers, and investors are all looking for credible third-party validation, and leveraging auditing, reporting, and certification can help companies build resilience and strengthen their position in Michigan’s evolving sustainable economy. Companies that take these steps today will be better prepared to compete — and thrive — tomorrow. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

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. 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Michigan-Founded Tech Company, Motmot

September 26, 2025 No Comments

Aging drinking water systems are one of Southeast Michigan’s most pressing infrastructure challenges. Many pipes in the region date back to World War II, built with materials now at the end of their service life. Combined with harsh freeze-thaw cycles and decades of underinvestment, the result is frequent leaks, water main breaks, and costly emergency repairs. Motmot, a startup located in Detroit, is tackling this challenge by deploying robotic technology directly inside live water mains. By providing utilities with condition data they’ve never had before, Motmot aims to shift water infrastructure management from reactive crisis response to proactive planning. SBN Detroit interviewed Elliot Smith, the company’s CEO and Co-Founder, about Southeast Michigan’s unique vulnerabilities, the role of technology in creating more equitable water systems, and how utilities can prepare for the future of smart infrastructure. 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We’ve kicked off our first pilot with the city of Detroit – I was especially happy that Detroit was the first city to take a chance on us. We are working through the American Water Works Association network. We already have more than 50 communities on our waiting list. That said, we’re being very intentional about not moving too fast. We want safe, effective pilots for every community we work with. My goal is to have 10 pilots started by the end of the year. Q: Beyond financial costs, what are the biggest environmental consequences of undetected water loss? A: Water loss is significant. A leak means residents are paying for water they never actually use. But it’s not just lost water — it’s wasted energy and chemicals as well. That water was treated, pumped, and disinfected before it ever leaked into the ground. In Michigan, reducing water loss directly supports our sustainability goals by conserving Great Lakes water and reducing the energy tied to treatment and pumping. 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AquaAction Chooses Detroit for U.S. Headquarters

September 17, 2025 No Comments

Founded in Canada, AquaAction is a nonprofit dedicated to tackling freshwater challenges through innovation and entrepreneurship. Now, the organization has chosen Detroit as its U.S. headquarters — a choice made because of Southeast Michigan’s role as a steward of the Great Lakes and a launchpad for water-tech solutions with global reach. Through initiatives like the AquaHacking and AquaEntrepreneur programs, AquaAction supports young innovators as they transform ideas into real-world technologies. SBN Detroit interviewed President Soula Chronopoulos about why Detroit was selected, the challenges and opportunities facing the region, and how water-tech could shape the next phase of Southeast Michigan’s economy. Q: What makes Detroit—and Southeast Michigan overall—a compelling region for water-tech innovation and freshwater stewardship? A: There’s a powerful momentum building in Detroit. The city has long been a symbol of resilience and grit, and now it’s fueling a new wave of entrepreneurial energy unlike what we’ve seen in other regions. With freshwater and climate change in the global spotlight, Detroit and Southeast Michigan are uniquely positioned. Sixty percent of the global economy depends on freshwater, and this part of Michigan sits on some of the world’s most critical reserves. The Great Lakes hold 21% of the planet’s freshwater resources, making them both a tremendous asset and a frontline target in the fight against climate change. This region has the chance to build something extraordinary — an economy rooted in water technology that can emerge directly from the Great Lakes. Q: How does AquaAction’s presence here help address regional freshwater challenges versus other parts of North America? A: When we considered where to establish our U.S. base, Detroit quickly stood out. Why? Because this area faces some of the toughest water challenges in the country: Flooding, affordability, pollution, and the legacy of crises like Flint. At the same time, there’s an eagerness here to be part of the solution. Detroit is a real-world test bed. If solutions can work here, they can scale across the U.S. and beyond. That’s why I often say the Midwest — and Detroit in particular — has the potential to become the Silicon Valley of water tech. Q: Can you discuss examples from the AquaHacking and AquaEntrepreneur programs that have particular relevance to Southeast Michigan? A: We ran our first Great Lakes binational challenge in 2023, and the response was incredible. Over 250 people joined, 45 teams were formed, and we launched 10 companies out of Michigan and the Great Lakes region. A few examples stand out: Motmot, based at Newlab, uses underwater robotics to detect leaks in aging water infrastructure. They’ve completed more than 40 projects. Myconaut uses bioengineered mushrooms aiming to remediate contaminated soil and keep lead out of drinking water. They recently won a grant and are testing their technology right here in Michigan. Other ventures include predictive flood modeling tools for cities and digital water management systems — both highly relevant to Southeast Michigan’s infrastructure challenges. In Quebec, similar efforts helped build a $200 million water-tech economy. Imagine what’s possible here. Q: How are young entrepreneurs being supported to translate their water-tech solutions into real-world applications in this region? A: We take a different approach. First, we’re a charity, but we’re also entrepreneurs ourselves. That perspective shapes how we build support for innovators. We’ve created an ecosystem where entrepreneurs can partner with subject-matter experts to validate their solutions. We then connect them with business leaders who help refine their models, open doors, and provide mentorship. Finally, we ensure they get into the field to test and apply their work. In Michigan, we anticipate engaging over 1,000 students and innovators in the coming years. We’re also focusing on communities including those with high unemployment. Q: What are the most pressing water-related challenges Southeast Michigan must address now—and in the coming years? A: Infrastructure is the biggest challenge. Much of it is aging and in need of major investment. Beyond that, flooding, pollution, and overall water management remain pressing concerns. There’s also the question of innovation. Detroit’s history in the automotive industry raises an important question: what comes next? I believe water technology can be the next major economic driver. The region already has supply chains, industrial capacity, and expertise that can be leveraged to build a world-class water-tech sector. Q: What barriers are startups or innovators encountering when bringing solutions to market locally? A: The greatest barrier is awareness. Climate conversations often focus on carbon, while water is overlooked. Yet 60% of the global economy runs on water. It is the lifeblood of everything, but we rarely treat it that way. That said, we’re beginning to see a shift. Policymakers, business leaders, and communities are starting to recognize the true value of water — not just as an environmental concern, but as an economic and security issue. Q: With U.S. headquarters now in Detroit, what kinds of economic or social impacts do you anticipate? A: There are two main areas of impact: Jobs and community. In Canada, we’ve helped create around 400 jobs, and we expect to do the same here. Every time we run an AquaHacking or AquaEntrepreneur program, we typically launch 10–20 companies. That means new businesses, new pilot projects, and new career opportunities. We’ve committed to the MEDC that within 12–18 months, we expect up to 35 new businesses to be launched, several pilot programs to get off the ground and at least 10–12 new staff hired at our Detroit office. Equally important is the community impact. Water is a human right, and it brings people together. We’re cultivating a new generation of innovators who see water not just as a resource but as a foundation for equity, resilience, and growth. Q: How do you envision long-term freshwater security, innovation, and resilience evolving in Southeast Michigan? A: Michigan is at a turning point. Just as it once led in mobility, the state can lead in water — in quality, flood management, pollution control, and technology development. The region has the knowledge, the infrastructure, and the industrial base to

Building Community and Sustainability Through Business

September 9, 2025 No Comments

Detroit-based entrepreneur Jarriel Brown is the founder of Burst of Life, a company with a dual mission: Creating good-paying jobs that help build community wealth and producing sustainable, plant-based compostable tableware that reduces environmental impact. For Brown, the business is not only about cutlery and compostables, but about opportunity, equity, and a commitment to Detroit’s future. SBN Detroit sat down with Brown to discuss the origins of Burst of Life, the role sustainability plays in his work, and how local entrepreneurship can spark both economic and environmental change. Q: What personal experience or insight drove the creation of Burst of Life? A: It came in two parts. My military and National Guard service gave me perspective — I traveled around the world and saw certain trends. But it hit home when Trayvon Martin was killed and later during the Flint water crisis. I was part of the response team there, going door to door and seeing people suffering — families of all ages, people who looked like me and people who didn’t. They all lacked control over their environment. As an electrician in the military, I asked my supervisor why we couldn’t do more. He told me we didn’t have the authority. That left me angry and determined. In 2019, I began learning much more about entrepreneurship through Global Empowerment Ministries, and I knew I wanted to create a company that could directly help people who were being overlooked. Burst of Life is my vehicle for that — to create jobs, build wealth, and use philanthropy as a driver for community change. Q: Why sustainability? Why plant-based materials? A: That also came from my time in the field. If we left behind forks or spoons, the environmental team would hold us accountable. It made me think about plastics differently. Later, I learned how plastics affect the body and environment — even contributing to birth defects. So, I decided to make plant-based products instead. Sustainability isn’t just about cutting down on waste; it’s about making healthier choices for people and the planet. I also envision running community cleanup programs — boots on the ground, removing trash, improving water, and land quality. Q: How is the material you use different from bamboo or other options? A: Our products are cornstarch–based. Bamboo is strong, but it can break and sometimes leaves a wood taste with food. Cornstarch offers better heat resistance and durability, while still breaking down naturally. It feels like plastic, but it isn’t plastic. Our utensils can turn to ash like bamboo, without releasing toxins. Q: What challenges have you faced in gaining adoption, especially from larger clients? A: The biggest challenge is size. Larger retailers are used to working with suppliers who can deliver on big orders without much flexibility. Still, I’ve been fortunate — our products are on the shelves at Meijer, Fresh Thyme Market, Zerbo’s, and others. To grow, we’re diversifying. We’ve expanded beyond cutlery into plates, bowls, and combo packs. We’re also targeting restaurants, which is a natural next step. Q: Burst of Life positions itself as more than a product company — it’s a movement. What does sustainability mean to you, and how is it woven into your business model? A: For me, sustainability includes community well-being. I grew up in Detroit and Chicago, where unemployment and crime often went hand in hand. I wanted Burst of Life to do more than sell products. I wanted to create jobs with good wages and benefits, and to hire from the community — including returning citizens and veterans. By helping people build wealth, we can strengthen families and neighborhoods. For me, that’s as important as making eco-friendly products. Q: How quickly do your utensils break down, and what impact does that have on waste in Michigan? A: In industrial composting, our products break down in about ten years — much faster than plastic, which can take hundreds. On a smaller scale, they can be burned safely in a campfire or bonfire, turning to ash without toxic fumes. Q: You’re a certified Minority Business Enterprise (MBE) and Service-Disabled Veteran-Owned Small Business (SDVOSB). How do equity and representation shape your commitments? A: Within the communities and places I’ve traveled to I have seen a lot of poverty, unemployment, and incarceration — realities that have hit African American communities especially hard. Burst of Life is about creating opportunities where they’re needed most. I also focus on hiring veterans. No veteran should be homeless, and jobs are one way to address that. Down the line, I want to create mentorship programs to help others build wealth and stability. It’s about creating a cycle of impact that goes beyond me. Q: Are there local collaborations that have supported your growth? A: Yes, my company began with support from Global Empowerment Ministries in Detroit. Their mentorship helped me understand entrepreneurship as something bigger than personal success. I’m also part of the Veteran Owned Business Roundtable, which connects me with other veteran entrepreneurs. And being part of a network of more than 4,000 entrepreneurs gives me constant support and shared learning. Q: How do you see sustainability practices evolving in Metro Detroit and Southeast Michigan in the next five years? A: My vision is to combine product innovation with direct community action. I’d like to see companies like mine not only offering sustainable products but also leading clean-up efforts and promoting environmental education. Detroit doesn’t always look like Bloomfield Hills — but there’s no reason it can’t. Sustainability is part of that transformation. Q: If you could leave other small businesses in the region with one piece of guidance on building with purpose, what would it be? A: Don’t give up. You’ll hear no a lot, and things won’t always look promising. But you have to believe in your vision more than anyone else does. Be your own biggest supporter. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

Managing the Trade-Offs between Vapor Intrusion Risk and Energy Efficiency

September 2, 2025 No Comments

Indoor air quality has become a significant concern for communities across the country, particularly in areas with older infrastructure and a long history of industrial activity. Protect Environmental, a Louisville, Ky.-based company with an office in Ann Arbor, specializes in radon and chemical vapor- intrusion management to help identify and reduce these risks. Its services include testing, system design, and long-term management, with the goal of creating safer and healthier buildings. SBN Detroit interviewed CEO Kyle Hoylman about the challenges facing Southeast Michigan, how construction trends and climate factors influence air quality risks, and what it will take to make the region a model for risk management. Q: How susceptible is Southeast Michigan to radon or vapor intrusion issues compared to other regions? A: Geologically, the state doesn’t have unusually high natural radon potential compared to some areas, but the issue is still significant. Roughly 27% of all buildings tested in Michigan show elevated levels of radon. The region’s soft sand and dunes can create preferential pathways for gas movement. Combine that with a long industrial history—many older manufacturing facilities were built before we knew what we know today—and you have conditions that increase both radon and vapor intrusion risks. Q: How have recent construction trends affected radon and indoor air quality risks in this region? A: Modern construction emphasizes energy efficiency. We’ve done a lot to tighten the building envelope—doors, windows, insulation—to reduce energy use. The unintended consequence is reduced air exchange. In the past, a building might have one to one-and-a-half air changes per hour. Now we see 0.1 or 0.15. That knocks down airflow, prevents outside ambient air from coming in, and increases reliance on mechanical systems. The thermal stack effect then plays a greater role, drawing soil gases into buildings and putting occupants at higher risk. Q: Southeast Michigan has a mix of historic housing, aging schools, and new commercial developments. How does this variety of building types shape the challenges and opportunities for mitigation? A: There’s a misconception that new buildings or buildings without basements can’t have radon problems. That’s not true. Three things are needed for radon intrusion: a source, a pathway, and an influence that draws gases in. Sources can be natural or industrial. Pathways can be cracks, utility lines, or porous soils. Influences might be mechanical ventilation or thermal effects. For example, in a school cafeteria, a large exhaust fan can create negative pressure and pull gases in. In homes, the stack effect in winter pulls more soil gas indoors. Commercial buildings add complexity because HVAC systems balance fresh air with energy costs. All of these factors shape risk, regardless of building type. Q: How do you see radon and vapor intrusion fitting into broader conversations about environmental justice in Southeast Michigan? A: This is a big concern. Many people are exposed to contaminants in buildings they don’t own or control. HUD requires radon testing and mitigation in some housing programs, but not all. Fannie Mae and Freddie Mac allow partial testing—sometimes just one unit per building—which can mischaracterize exposure and lead to inequities. In reality, 100% of units should be tested. Otherwise, you can have people in the same facility experiencing very different risks. Environmental justice means ensuring all residents—especially vulnerable populations in public or assisted housing—are equally protected. Q: What role can builders, architects, and developers play in designing for prevention rather than remediation? A: Prevention should be standard. The most cost-effective approach is to install passive soil gas control systems during construction, conveyance piping that allows for ventilation if needed. This adds very little cost upfront and can easily be converted to an active system later by adding a fan. Codes should require this in all new construction. Q: As climate change impacts weather patterns and soil conditions, what long-term effects could that have on radon or vapor intrusion risks? A: Soil moisture and composition will shift. As soil expands or contracts, new pathways for gas movement can be created. Climate also impacts building pressure. In Detroit winters, a 70-degree indoor space next to 5-degree outdoor temperatures significantly increases soil gas entry. We see different impacts between heating and cooling seasons, which is why building characterizations should account for both. Q: How do commercial and institutional facilities—like hospitals, universities, or municipal buildings—approach mitigation differently from residential projects? A: The characterization process is the same—you assess the building, identify sources, pathways, and influences. But mitigation can differ. In homes, we often use sub-slab depressurization. In commercial environments, many buildings already have mechanical ventilation systems with fresh air. Increasing that airflow can help control vapor intrusion. So while the tools are the same, the strategies differ. Q: What would it take to make Southeast Michigan a model for radon risk management, and who needs to be at the table? A: A strong regulatory framework is essential—one that protects occupants and requires qualified professionals to do the work. Schools and daycares should be required to test. Commercial buildings should test every five years, with results shared with occupants. Building codes must include soil gas control in all new construction, not just in high-risk zones. And stakeholders need to include indoor air advocates, health organizations, state officials, builders, and community groups. There’s also a financial argument: Michigan sees roughly 8,000 lung cancer cases annually, about 1,000 of which are linked to radon. That costs taxpayers around $400 million a year. Preventing exposure is far less costly than treating disease. Ultimately, proactive management saves lives and money. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.