Affordable Housing Projects


City Manager's Office


(231) 922-4440

The City is dedicated to pursuing housing opportunities for all, regardless of income. As an identified Goal and Objective, housing needs have been addressed by planning and zoning initiatives that promote greater density, encouraging rental housing and smaller units, by partnering on affordable housing projects with PILOT (Payment in Lieu of Taxes) programs, and identifying City owned properties where affordable housing may be developed.

PILOT Programs

Ruth Park

The City participated with a PILOT for the Ruth Park housing development along Wellington Street. This affordable housing project will provide 58 one, two, and three bedroom units for singles, families, and seniors who earn 30%-80% of the area median income. Live/work spaces will also be incorporated with additional amenities such as a rooftop terrace. Building materials from the demolition of the existing buildings were recycled and used by a local farmer. Ruth Park is anticipated to be complete in late 2022.

Anika Place

A PILOT arrangement was approved for Annika Place for a new residential development located at 947 South Garfield Avenue. The development will consist of the demolition of two existing homes and the construction of a 54,310 square foot, four-story building with 53 residential units targeting singles, families, and seniors. The complex is to be a combination of 1 and 2 bedroom units; 29 one bedroom units and 24 two bedroom units. 34 of the units, or 64% of them, are targeted for residents with an annual income between 70-80% of the area median income.


A PILOT arrangement was approved with HomeStretch NonProfit Housing Corporation for a housing development located at 1028 Carver Street. The project consists of the demolition of a single family home, and the construction of one duplex and two fourplex buildings, including ten 100% affordable residential units. All units will be occupied by residents with an annual income not to exceed 80% of the area median income. Rents for the 1- and 2-bedroom units will start at $720 per month and go up to a maximum of $945 per month with a 3% maximum annual increase. Project completion is in 2023.

Housing Commission

A resolution for a one-year extension to the PILOT arrangement with the Traverse City Housing Commission for the Parkview Senior Apartments to be located at 1223 East Eighth Street was adopted. The project is to be complete by March 2022. A resolution for a one-year extension related to the PILOT arrangement with the Traverse City Housing Commission for the Riverview Terrace rehabilitation project at 150 Pine Street was adopted.

Exploring Housing Opportunties

The City in partnership with the DDA explored turning City owned surface parking lots into sustainable affordable housing and is currently focusing on Lot O. Qualifications-based proposals were sought from developers. The City evaluated proposals based on maximizing the number of residential units, minimizing the carbon footprint, and creating a community through building design i.e ground floor retail, price point diversity, etc. Special consideration was given to proposals that include a substantial number of rental units that fall within the range of 70% to 120% of the area median income.

Increasing Density

Multifamily districts were recently changed to allow a greater intensity of development to occur. Removing the density limits allows for more dwelling units on the land, which typically results in smaller and more affordable units. The purpose of the amendments were to increase housing opportunities in the City by modifying the development regulations for the multiple family dwelling districts, so they will be more likely to be developed into housing to meet our ever growing housing demand.

Eliminating Parking Minimums

An ordinance amendment reduced minimum parking space requirements. Generally, the parking space cap for non-residential uses changed from a maximum of one parking space for every 150 square feet to one parking space for every 250 square feet. Eliminating residential parking minimums for residential lends the oppportunity for a lower cost per unit since the cost of built parking is reduced within a development.