8 GROUNDCOVER NEWS HOUSING AUGUST 8, 2025 Avalon Housing Ypsi complex breaks ground, community benefits will follow despite expiration LINDSAY CALKA Publisher There’s construction happening on Washington Street in Ypsilanti. It's been a long time coming, and it's expected to have a long-term benefit. On January 1, 2017, the 16-unit apartment building managed by Stewart Beal at 206 N. Washington caught fire. Not long after, the Wash-tenaw County Treasurer foreclosed the burned-out multi-unit structure following the owner’s nonpayment of taxes and failure to make an estimated $1.5 million in repairs. In July 2019, the City of Ypsilanti City Council voted 7 to 0 to approve purchasing 206 N. Washington from the County Treasurer with its “Right of First Refusal” for $101,977 — using a combination of $75,000 from Ypsi’s Affordable Housing Fund and $26,977 from Ypsi’s Dangerous Buildings Escrow Fund. In March 2020, eight months after the City’s purchase, the City Economic Development Director requested that the City release a Request for Proposals for affordable housing development. On September 15 of that year, Ypsilanti City Council approved the proposal from Avalon Housing. The only other proposal was from the Ypsilanti Housing Commission. On February 2, 2023, Avalon made a formal request for a Payment in Lieu of Taxes (PILOT): 4% of total shelter rents for the next 50 years. Working with the City Assessor, staff estimated the tax to be $55,615 per year without a PILOT, which makes the total value of the tax break incentive $2.38 million. Shelter rents proposed are $750 at 22 units for a total of $198,000, so the payment instead of taxes would be $7,920 annually. However, the City will collect a portion, not all, of this payment instead of taxes. Due to Ordinance No. 1325 (passed in 2018), when a developer is requesting public support in the form of a financial incentive — such as a tax break — or in the form of the sale or lease of city-owned land, the developer must offer substantial community benefits. Residents of Ypsilanti are nominated then appointed by City Council for an ad-hoc committee to discuss and negotiate potential community benefits. Over six months the Community Benefits Agreement Committee met four times in public meetings to produce the agreement below. It was put before a public hearing and approved by Ypsi City Council on December 5, 2023. 206 N Washington St.’s Community Benefits The approved Community Benefits Agreement requires Avalon to abide by the following ten agreements: 1. Avalon will affirmatively market the units at 206 N. Washington St. so that populations that often find it difficult to obtain affordable and supportive housing will have access to these units including seniors and others identified, in the Project’s Affirmative Fair Marketing Housing Plan. 2. Avalon will affirmatively market and prioritize supportive housing units at 206 N. Washington St. to previously incarcerated individuals, consistent with the local Coordinated Entry process. 3. Avalon will lose the PILOT on an individual unit for a year if the tenant has an income that exceeds 60% area median income. 4. Avalon will commit itself to continuing its mission throughout the duration. Avalon’s mission to build healthy, safe and inclusive supportive housing communities as a long-term solution to homelessness. 5. Avalon will collaborate with community partners to offer appropriate programs that are available to the wider community in the community room at 206 N. Washington St. 6. Avalon shall commit to Green Standards included in its County HOME agreement and in its MSHDA agreement, including Enterprise Green Communities and/or National Green Building Standards. 7. Should an excess of funding exist after the project is complete, then Avalon will use any additional funds to add renewable components to the building (solar, etc.). 8. Avalon agrees to assist its residents in acquiring a residential street parking pass, with proof of vehicle ownership. 9. Avalon will install a bench in the front of the property. 10. Avalon will maximize the use of the historic outbuildings for community benefit as space permits, subject to historic district restrictions, if any. The City of Ypsilanti is required to do the following: 1. Maintain the 4% PILOT on 206 N. Washington St. for the length of this agreement. 2. Amend Chapter 58 of the Human Relations Commission to further focus on housing affordability and accessibility; however, failure of the City to amend Chapter 58 shall not limit the 206 N Washington St. before demolition. Avalon Housing's development will provide 22 units of affordable housing and supportive services. Rendering provided by Avalon. project’s ability to receive a PILOT. 3. Readopt a Community Benefits Ordinance; however, failure of the City to readopt a Community Benefits Ordinance shall not limit the project’s ability to receive a PILOT. Yes, the 2018 Community Benefits Ordinance that made this whole process possible has expired. Working sessions are happening now to reinstate another CBO. Construction timeline In late June the construction began and by July the building was completely demolished. The project is expected to be completed by the end of 2026 — when the CBA will officially go into effect. 206 N Washington St. will provide 22 units of affordable housing; all of the units are 1-bedroom units, and eight of the units are set aside for people exiting homelessness. Everyone living at 206 N. Washington will have access to support services such as case management, crisis support and medical care to help overcome any challenges they face in staying housed. Much of the CBO research for this article was compiled by Kat Layton, a member of the 206 N. Washington Community Benefits Committee. Agreement
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