Full Circle Communities has discussed a proposal for a Planned Unit Development (PUD) at 503 E 9 Mile Rd. and the two adjacent residential parcels to the north which includes a multi-family affordable housing development catering to LGBTQ+ elderly individuals via programming and support services.
This form of planning allows for flexibility and creativity in normal zoning requirements. There are several requirements developers must fulfill in order to qualify for this type of project.
Those requirements are the following:
Preservation of significant natural features; a complementary mixture of uses; sustainable building and site design; open space greenways to link to adjacent to greenway corridors; transition areas from adjacent land uses; provision of affordable housing units; diversification of housing types provided in the City; preservation of historical buildings or site features; improvements to public streets or other public infrastructure; pedestrian and transit-oriented development; coordinated development of multiple assembled small parcels; and removal or renovation of blighted buildings, or sites or clean up of site contamination.
PUD projects are reviewed by staff and the Planning Commission via a Public Hearing, with final approval from City Council via Public Hearing.
The developers are requesting incentives support from the City of Ferndale as Payment in Lieu of Taxes (PILOT) and the State of Michigan in tax credits from the Michigan State Housing Development Authority (MSHDA). The City of Ferndale must first approve and support the incentives prior to the developers' request to the State of Michigan.
The developers are seeking approval from City Council for a tool called Payment in Lieu of Taxes (PILOT). A PILOT is an annual payment provided by a development instead of paying property taxes as a project normally would. PILOT, like MSHDA tax credits, is used only to support affordable housing. The payment request starts as a percentage of annual revenue for the project and is finalized through negotiation between the developer and the City. This process includes review by City staff and final City Council review and vote. Staff reviews the support for affordable housing while making sure that any increased revenue is available for city services.
The annual cost of the incentive is estimated at an average of about $2,964 per year in reduced tax revenue, and just over $133K in total over 45 years. Review the PILOT Request Staff Report, in the documents list on the right of this page, for further details.
MSHDA's annual review process and the City of Ferndale's rental licensing process ensures that affordable rental rates are maintained for the life of the incentives. Otherwise, the incentives would be revoked.
To receive a PILOT, the developers must go through two steps. First, they need to secure Planning Commission approvals for their project site plan. Second, they need to secure City Council approval of the project site plan and any other planning and zoning related items, as well as the approval of an ordinance that establishes the terms of the PILOT. Both of these steps occur through public hearings at open meetings where public comment is encouraged and permitted.
Currently, the developer is on track to appear before City Council on January 25, 2021 for consideration of their project site plan and PILOT request. Public notice has already been distributed for these meetings.
Community and Economic Development Department
October 7, 2020: Planning Commission Meeting
December 2, 2020: Discussion Meeting
December 16, 2020: