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Council advances $500,000 to housing fund and approves notice of intent for up to $10M bonds for Newberg Village expansion
Summary
The council approved a $500,000 advance from existing housing fund balances to begin site work and authorized the required public notice of intent to issue up to $10 million in general obligation bonds to fund a proposed senior affordable housing expansion.
The Livonia City Council approved an advance of $500,000 from the Newberg and Silver Village fund balances to a new Newberg Village expansion operating fund to support predevelopment site work, site clearance, fencing, signage, early architectural fees and bond counsel costs. Housing commission staff said the advance will be repaid from future bond proceeds when the project financing is finalized.
Housing commission representatives said the city owns roughly 9.5 adjacent acres intended for an affordable senior housing expansion. The expansion is expected to be similar in scope to prior city-built senior housing projects; housing staff said the plan would target roughly 100 units, prioritize two-bedroom units for marketability and that units would generally be slab-on-grade construction. Staff estimated construction would take 12 to 18 months after bonds are issued and contracts awarded.
Council also approved a statutory notice of intent to issue general obligation bonds not to exceed $10,000,000 and declared the city’s intent to reimburse the advance from bond proceeds. City staff and bond counsel noted the 45-day public-notice period required by Michigan law; staff said the final bond amount will be set after market review and during the formal bond resolution process, expected in March or April.
Council members said the project will be self-supporting: rents, operating revenues and replacement reserves will fund principal, interest and operations and no general fund dollars will be used. Council approved the advance and the bond notice on consent and instructed staff to proceed with bond-market preparations and follow-up public notices.
