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Council approves NEZ for Auburn Place affordable housing at 454 Auburn Avenue
Summary
Pontiac council approved a Neighborhood Enterprise Zone for a new-construction, 55-unit affordable housing project by Lighthouse on Auburn Avenue, noting the project's reliance on tax-exemption and other financing to proceed.
The Pontiac City Council on Jan. 21 approved a Neighborhood Enterprise Zone application from Lighthouse to support new-construction affordable housing at 454 Auburn Avenue. The NEZ will apply to the new-construction portion of Beacon Square/Auburn Place and is one piece in a capital stack that includes housing tax increment financing and federal or state sources.
Project and location: The Lighthouse project is planned for vacant land on Auburn, and the proposal includes 55 affordable units; the NEZ application covered the new-construction building only, not renovation parcels nearby. Lighthouse representatives told council the NEZ, together with other public financing mechanisms, was necessary to make the project feasible and to preserve affordability.
Fiscal note: Planning and economic development staff estimated the city would forego roughly $140,000 in property-tax revenue over the NEZ period for this particular new-construction NEZ, with annual tax payments after the abatement expected to be about $255,000 (subject to future millage changes) once the exemption period ends.
Vote and next steps: Council approved the NEZ certificate by roll call (6-0). Lighthouse said it expected to close financing in the months ahead (the developer cited a March target) and will proceed with construction once other entitlements and financing are in place. The council and administration noted the project aligns with planned Auburn Road improvements and broader neighborhood revitalization goals.
Ending: The NEZ is one financing element to bring multiple new affordable units online; council supported moving the project forward as part of a larger corridor redevelopment strategy.
