Developer to create disability rental housing community
LONDON: A new project will include rental housing for individuals with disabilities and 64 walk-up apartments for low income earners.
A piece of land that has long been vacant is being eyed for a low- to moderate- income housing development on the southeast side of Sterling Heights.
The City Council will be asked at Tuesday’s meeting to approve special financing for the apartment buildings on the corner of 14 Mile Road and Red Run Street, west of Schoenherr Road.
The multi-million dollar project, to be titled Theriot Terrace, would see construction of four two-story buildings and contain 64 walk-up apartments, according to Woda Cooper Companies, a Columbus, Ohio real estate firm.
“Once completed, this development will have affordable rents to help working singles, families, seniors as well as individuals with disabilities and some that may be homeless. All tenants will enjoy quality, safe, and energy efficient housing in Sterling Heights,” P. Craig Patterson, a senior vice president, said in a letter to the city.
The plan involves a community building, playground and picnic area. The new units will have Energy Star-rated appliances, water-saving faucets/toilets, insulation and other “green” features, which will help the finished community qualify for LEED certification.
To fund construction, Woda Cooper will seek housing tax credits from the Michigan State Housing Development Authority (MSHDA). As part of the application process, MSHDA requests developers seek a payment in lieu of taxes, or PILOT, from the local municipality.
Woda Cooper says the PILOT helps to ensure the long-term financial stability of the property and helps the developer increase their chances of receiving funding from national investors.
The proposal involves a 6% PILOT for 16 years. In addition, Woda Cooper wants to pay the city a Municipal Services Agreement about $11,000 to cover city-funded services such as police, fire and EMS. The agreement can increase up to 3% a year.
According to city Assessor Marcia Magyar-Smith, the units will be marketed as “work-force” housing that targets low- to moderate income families within 30%-80% of the median county income range.
The two parcels of land on 14 Mile and Red Run are vacant and have been for a “significant” amount of time, according to the assessing office. The property was rezoned from R-60 (One Family Residential District) to RM-2 (Multiple Family Low Rise District) in 2014, but nothing was ever built.
The site is adjacent to properties with two different multiple family developments, while properties directly to the north and west are zoned single family residential. Fellowship Chapel is to the west of the site.
The apartments will be a mix of one-, two- and three-bedroom units, ranging from 684 to 1,137 square feet.
According to materials filed with the council office, the site will also have a 2,460-square-foot community building, which will contain a kitchenette, office space, fitness center, a community room, and a computer lab.
The same company is building a 30-unit site along the Clinton River in downtown Mount Clemens.
Mount Clemens city officials were not overly satisfied with the project, which is now underway.
Mount Clemens City Manager Donald Johnson said an analysis shows the city will receive about $15,000 more than what is being brought in now, but other taxing jurisdictions — such as Macomb Intermediate School District, Mount Clemens Community Schools District, Huron-Clinton Metropark Authority — would be worse off by about $34,000.
The Sterling Heights council meeting will begin at 7 p.m.
