Lapeer adopts fair-housing update, approves USDA homeowner rehab application and sets CDBG public hearing for Opera House apartments

The Lapeer City Commission on Sept. 2 adopted an updated fair-housing resolution and policy, approved pursuing a U.S. Department of Agriculture homeowner rehabilitation grant, and set a public hearing Sept. 15 for a proposed Community Development Block Grant (CDBG) application to convert the upper floor of the Opera House into residential units.

The commission unanimously adopted the updated fair-housing resolution and policy. No substantive debate was recorded on the resolution during the meeting.

Commissioners also approved a resolution to pursue USDA Rural Development homeowner rehabilitation (HPG) funding. City staff member Shelly Levinsky explained the grant would not cost the city money and that the city would receive $11,000 for administration to process the award while the program funds are 100% paid to qualifying homeowners. Levinsky said the typical uses include roof replacement, window repair, sewer-system work and other home-repair needs; grants can stand alone or be combined with other funding sources such as MSHDA or Habitat for Humanity.

Levinsky described primary eligibility requirements discussed at the meeting: applicants must be city of Lapeer residents, have owned their home for more than one year, have property taxes and insurance current, and meet income limits (about 80% of area median income depending on household size). She said the city expects to serve approximately five homeowners under the award but can amend individual award amounts if necessary; if demand exceeds available funding the city will process applications on a first-come, first-served basis and maintain a waiting pool for subsequent funding rounds.

The commission also set a public hearing for Sept. 15 to receive comments on a proposed 2025 Michigan State Housing Development Authority (MSHDA) Neighborhood CDBG application to convert the second floor of the old Opera House at 350 N. Court St. into seven residential apartments. Project representatives said they designed seven units to fit roughly 8,500 square feet on the second floor; per grant guidelines the applicant would limit the conversion to seven units to meet program criteria. Project representative Mr. LaVang said environmental reviews are underway and that a phase 2 environmental study is likely. He said there is no guarantee of funding.

Project details discussed in the meeting included a plan for two two-bedroom units and five one-bedroom units (unit sizes ranging from about 500 to 1,100 square feet), and an expectation that at least 51% of newly created units would serve low- and moderate-income households. Estimated rents for income-restricted units were described in a general range of about $1,000 to $1,100 depending on unit size and bedroom count. City staff said the city would monitor income eligibility annually as required by the grant if the project receives funding.

Shelly Levinsky said one portion of the CDBG award includes administrative funds and that part of those funds would cover third-party requirements; during discussion staff indicated a figure of about $36,000 in administration was in the application package, with a portion designated for city administration and a portion for consultant (CGA) work.

What happened: The commission adopted a fair-housing resolution, authorized staff to pursue USDA homeowner rehabilitation funding, and scheduled a public hearing for Sept. 15 on a proposed CDBG application to convert space in the Opera House to seven apartments. No grant awards were approved at the Sept. 2 meeting; the CDBG item will return after the public hearing with a resolution if staff proceeds to apply.