64-unit senior housing complex planned for site near downtown Kalamazoo – MLive.com

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KALAMAZOO, MI — A 64-unit senior housing complex is coming to Kalamazoo.

On Monday, March 7, the Kalamazoo City Commission approved a Payment in Lieu of Taxes (PILOT) resolution for the “Rose St. Senior” development at 530 S. Rose Street. The city commission approved the request for a 2% PILOT resolution for up to 50 years, for 51 eligible units in the proposed Low Income Housing Tax Credit (LIHTC) project.

Kalamazoo-based developer Jon Durham is teaming up with LIHTC developer PS Equities on the project, the city said. The same development team was awarded 9% LIHTC for the Harrison Circle project in 2019, the city said.

The five-story project will be brand new construction. A parking lot and a fenced construction area currently occupy the site.

The development will have 51 units, including both one- and two-bedroom units, for senior citizens (age restricted to 55 years of age or older) targeting those with an income mix below 60% of Area Median Income ($790 for a one bedroom, $943 for a two bedroom). It also includes an additional 13 market-rate units ($1,075 for a one bedroom, $1,350 for a two bedroom).

Each apartment will have an open floor plan with air conditioning, washer and dryer and dishwasher, the plan states.

Common area gathering spaces are anticipated, including an outdoor courtyard and a common area balcony on each floor. The building will have an elevator and covered parking.

PGJ Development and PS Equities formed 530 Limited Dividend Housing Association Limited Partnership for the 530 S. Rose St. project.

The project received $1,034,000 in LIHTC credits during the 2021 funding round, the Michigan State Housing Development Authority said.

The original PILOT resolution authorized a 4% service fee for all 64 units in lieu of ad valorem taxes. Since that resolution was adopted, the Michigan Court of Appeals ruled that cities cannot extend a service fee lower than ad valorem taxes to any units that aren’t targeting lower incomes, regardless of the mix between low income and market rate units.

To offer a similar level of support to the project as was offered in 2020, the new proposed PILOT resolution is for a 2% service fee on eligible low-income units. This does not fully equal the effect of 4% service fee on all units, but does still significantly reduce the taxes for the project, the city said.

As a result, the developer’s tax burden overall is reduced by $102,728 a year, the city said.

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