More New Affordable Housing Coming to Kalamazoo

Published on November 13, 2024

Affordable housing and homelessness are crises confronting local, state, and federal officials across the country. Recent action by Kalamazoo City Commissioners will hopefully ease local burdens caused by the crisis through supporting measures designed to augment the creation of affordable housing opportunities within the city.

At the October 21 City Commission Business Meeting, Commissioners approved various tax abatements and financial support for new affordable housing units as well as new permanent supportive housing units. The former Residence Inn hotel at 1500 E. Kilgore will be rehabilitated through tax abatements and financial support to turn the hotel into 40 affordable units. New construction efforts will begin next year at 3405 Duke Street to build 19 permanent supportive housing units for vulnerable populations. At 333 E. Alcott Street, low-income housing tax credits, tax abatements and financial support will allow the construction of 46 new affordable permanent supportive housing units to be available for persons with substance abuse issues.

And at last night’s City Commission Business Meeting, Commissioners approved two PILOT (payment in lieu of taxes) resolutions for Zion Place 9 and Zion Place 4, a proposed 70-unit low-income community owned by Zion Place Limited Dividend Housing Association Limited Partnership (LDHA LP) on the city’s Northside. The development is known as The Legacy Senior Housing and is a joint venture with Mt. Zion Baptist Church. It is bordered by East Frank Street on the north, North Edwards Street on the east, East North Street on the south, and North Burdick Street on the west.

1500 E. Kilgore

Chicago-based Odyssey Hotels, with General Capital as an affordable housing consultant, intends to renovate and convert the existing 83-room former Residence Inn long-term stay hotel into an 83-unit affordable rental housing development. Odyssey Hotels owns and operates many full and limited-service hotels, and is an expert in hotel renovation, construction management, single family homes, and renovating apartments.

City Commissioners approved a ten-year PILOT resolution to ANR Kalamazoo Limited Dividend Housing Association LLC for the creation of 40 affordable units at the location, which will be called Kilgore Apartments. Commissioners also approved an additional $400,000 loan to ANR Kalamazoo Limited Development Housing Association, LLC to help construct the housing units. The loan is from the HOME Investment Partnership Program entitlement funds received annually from the U.S. Department of Housing and Urban Development (HUD). As part of the agreement, eight of the 40 units will be reserved for households earning 50% or less of the Area Medium Income (AMI), and the remaining 32 units will be for households making 60 percent or less of the AMI.

“Kalamazoo is experiencing a significant shortage of affordable housing,” said Rachit Dhingra, Chairman and CEO, Odyssey Hotels. “We are excited to collaborate with Kalamazoo County government and the City of Kalamazoo to tackle this issue.”

3405 Duke Street

Kalamazoo Community Courtyard will be the name of a new 19-unit affordable housing community with Low Income Housing Tax Credit (LIHTC) designation for vulnerable populations. The development is a partnership of MDV Housing, Zero Day Inc., and Jeff and Kelli Scheffers, owners of Kalamazoo-based home builders Visser Living. The City of Kalamazoo approved a 35-year PILOT to Kalamazoo Community Courtyard Limited Dividend Housing Association Limited Partnership to create the development. City leaders also allocated $700,000 in ARPA (American Rescue Plan Act) funding to Zero Day Inc., a veterans organization based in Battle Creek, Michigan, to assist in providing support services for individuals and families and implementing vocational programs.

Wrap-around direct client services, including home visitation, case management, advocacy, legal, and therapeutic services, will be provided by YWCA Kalamazoo through a Memorandum of Understanding with the owning limited partnership. All 19 LIHTC units will be targeted for households whose medium incomes are less than 30% of Kalamazoo County medium incomes.

“As the proud owners of the land at 3405 Duke Street for over 20 years, we are honored to donate this property to such a vital initiative,” said Jeff and Kelli Scheffers of Visser. “Our commitment to fostering healing and empowerment aligns perfectly with this project’s mission to provide essential support services for survivors.”

333 East Alcott Street

City Commissioners approved a $700,000 ARPA subgrant to Hollander Kalrecovery Limited Dividend Housing Association Limited Partnership (LDHALP) for the construction of 46 new permanent supportive housing units for persons recovering from opiate and methamphetamine use disorders. Commissioners also approved a 50-year PILOT resolution for Hollander Kalrecovery for construction and future rehabilitation of the units. The Kalamazoo-based Hollander Development Corporation partners with diverse stakeholders to develop housing for individuals and families impacted by substance-use disorders as they seek to sustain recovery within a supportive, intentionally designed environment.

The Alcott Street development will consist of one-, two- and three-bedroom apartments split between three buildings. Twenty-three of the units will be available for households making 30 percent or less of the area median income, and 23 units for households making 50% or less AMI. All 46 of the supportive housing units will have project-based Section 8 housing choice vouchers so that residents will pay no more than 30% of their income towards housing expenses.

“Michigan’s drug treatment court system was founded in Kalamazoo in the early 1990s, and we’ve known for decades that it’s safer for our community and costs less than tossing people in jail,” said Matt Hollander, Partner and Senior Developer with Hollander Development Corporation. “The next step is to build safe, long-term, sober housing for our friends and family members who benefit from these programs. Our entire team is proud to live in Kalamazoo, where we continue to lead the nation in our research-based approach to combating substance use disorders.”  

Zion Place

The Legacy: Senior Housing project will be developed with the objective of providing quality, affordable housing options to seniors of low or moderate income residing in Kalamazoo’s near-north neighborhoods. The housing provided will be 100% affordable, meaning that all 70 units will be rent restricted and leased to qualifying tenants of low or moderate income.

The units are financed through awarded 4% and 9% Low Income Housing Tax Credits. The 4% phase will contain 34 one-bedroom units, while the 9% phase will contain 36 one-bedroom units.

“The Legacy: Senior Housing project is a significant addition to Kalamazoo’s Historic Northside Neighborhood,” said Jason Muniz, Vice President with Hollander Development Corporation. “This project is not only a commitment to affordable housing but also to environmental sustainability. By combining affordability, community engagement, and environmental stewardship, we believe that The Legacy: Senior Housing will set a new standard for senior living in Kalamazoo and beyond.”

Since 2020, the City of Kalamazoo has invested nearly $29 million in affordable housing projects and programs. These new developments further demonstrate the City’s commitment and priority of addressing the housing crisis in the community. The City of Kalamazoo is grateful for support from its residents as well as from the public and private sector, that is working to address housing needs.

“We are pleased to see these plans coming to fruition,” said Sharilyn Parsons, Community Development Manager for the City of Kalamazoo. “We strongly support these organizations that are stepping up and creating initiatives aimed at affordable housing while also assisting individuals and families without permanent housing. There is much to be done. Every workable solution brings us that much closer to bridging the housing gaps we are currently experiencing in our city.”