Kalamazoo City Commission approves $1 million ARPA loan amendment for Legacy Senior Housing at 730 N. Burdick St.

The Kalamazoo City Commission on March 31 approved an amendment to a previously authorized $1,000,000 Treasury SLFRF (ARPA) loan to Zion Place 4 Limited Dividend Housing Association Limited Partnership to support construction of Legacy Senior Housing at 730 North Burdick Street.

Sheryl Parsons, Community Development Manager, told the commission the special meeting was called because the project closing is scheduled for April 7 and delaying approval would push that closing. Parsons said the amendment changes the project schedule: the primary mortgage closing moved to April 2025, construction will begin in April 2025, the construction period is expected to run into December 2026, and full lease-up is projected by March 2027. Under the amended schedule the developer’s first loan payment will begin May 31, 2027.

Parsons described the loan as a $50,000 annual payment over a 20-year term at 0 percent interest. She said the full project cost is about $27,000,000 and that the development relies on 19 different funding sources and a competitive award of low-income housing tax credits to fill remaining financing gaps.

During public comment, a chamber speaker and Maddie Jordan Woods urged the commission to approve the amendment; Pastor Moore of Mount Zion also thanked the city for partnering on the project. Commissioner Decker said, “I think we're all on board with this project as it puts more housing in the city of Kalamazoo and especially for our seniors.” Mayor Anderson later described the groundbreaking as a meaningful event and credited the many partners who helped assemble financing.

The motion to approve the loan agreements and authorize the city manager to sign related documents, including administrative changes that do not alter loan terms or unit production, was made by Commissioner Hoffman and supported by Commissioner Wilson. Clerk Boerling recorded votes of yes from Commissioner Decker, Commissioner Hoffman, Commissioner Wilson, Mayor Anderson, and Commissioner Cooney; the motion passed 5-0.

City staff identified the city’s role as facilitator and noted one way the city participates is by agreeing not to charge ad valorem taxes on the project (an often-used local participation term for tax-credit developments). Parsons and commissioners emphasized that low-income housing tax credits (LIHTC) were essential to the project and that LIHTC awards require applicants to demonstrate gap financing before credits are issued.

The commission authorized the city manager to sign documents needed to close on the amended loan agreement so the developer can meet the April 7 closing date. Construction and lease-up timing reported by staff remain subject to lender schedules and tax-credit closing requirements.