Affordable Housing Projects
City Manager's Office
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.
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 2023.
A 6% PILOT with a term of 16 years, beginning on 2023 and ending in 2039 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. Annika Place broke ground in December 2022.
Annika Place II
A 6% PILOT with a term of 16 years, beginning on 2023 and ending in 2039 was approved for Annika Place II for a new residential development located at 1020 Hastings Street. The development will be a Annika Place II is to be a 56,146 square foot, four story building with fifty-two (52) residential units; 28 one-bedroom units and 24 two bedroom units. Of these, 6 units will be barrier free. Twenty-two (22) or 42% of the units are targeted for residents with an annual income between 70-80% of the area median income.
Permanent Supportive Housing: Woda Cooper Company will work with Goodwill Northern Michigan to provide 19 units for those experiencing homelessness and assist the Top 10% of Continuum of Care's Prioritization List and Households of Chronically Homeless. Woda will work with any Veterans in the area who may meet the above criteria. Goodwill Northern Michigan will be the Lead Agency and will provide case management and supportive services.
Sustainability: Annika Place II will seek LEED Silver certification, include EV charging stations, and is investigating electric heat.
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. The City approved an amendment to the agreement for the extension of the conditional rezoning on this project (originally authorized August 3, 2020) for one year, expiring August 3, 2023.
A resolution for a one-year extension, which extends the date by which construction must commence to March 16, 2023, 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.
A resolution for a one-year extension, which extends the date by which construction must commence to March 16, 2023, related to the PILOT arrangement with the Traverse City Housing Commission for the Riverview Terrace rehabilitation project at 150 Pine Street was adopted.
A PILOT arrangement was approved for Bradley Commons for a new residential development located at 1024, 1026, 1028 & 1040 E Front St. The affordable housing project will provide 53 residential units; 30 one bedroom units and 22 two bedroom units. Of these, 6 units will be barrier free. One bedroom units will range between 653-678 square feet in size. Two bedroom units will range between 780-895 square feet in size. 34 units (64%) are targeted to be occupied by residents with an annual income between 70%-80% of area median income.
The demand for housing in our region remains high, particularly in locations that are convenient and accessible to one’s daily needs. Land use regulations as they relate to permitting housing types, densities, and locations are just one of the many levers influencing the housing needs in the City, and one that the City Commission and Planning Commission have direct influence over.
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.
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.