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Council approves pilot for modular "millennial" infill housing on tax-reverted lots

6438830 ยท October 15, 2025

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Summary

The council approved a pilot ordinance and sale of two tax-reverted lots to a developer proposing modular, factory-built workforce rental homes under a workforce-lieu-of-tax pilot. The project aims to place two demonstration homes and advance an overlay zoning approach for larger-scale infill.

The Warren City Council on Tuesday approved a pilot ordinance and the sale of two tax-reverted lots to developers proposing modular infill housing as a workforce-housing test run.

Developers presenting as Spear Partners (John Wright, Nicole Gatto Ross and Jim Ross) said the pilot would place two factory-built modular homes on scattered vacant lots in the southern portion of the city to test market demand and construction logistics. The developers described modular units manufactured by Champion Homes (a Troy-based firm), saying factory construction reduces on-site build time and could lower costs about 35% compared with traditional stick-built construction.

The project would use a 2022 state workforce payment-in-lieu-of-tax program to make workforce-rate rentals financially feasible; under that approach owners pay a service charge calculated on net shelter rents instead of conventional property taxes. Developers said the pilot would offer modern, open-floor rentals targeted at workforce households and would aim to achieve stable tenancy while raising neighborhood housing quality.

Council and staff discussed inspection and code compliance: the developers said the modular structures receive state-level approval (through LARA), while the city issues site permits and inspects foundations, utility connections and final occupancy. Council members asked about materials, energy efficiency and potential formaldehyde concerns; developers and factory representatives said they use batt and blown-in insulation and would provide building-material details at second reading.

Council authorized sale and pilot framework votes (separate motions for resolution and sale of two lots) and approved limits on short-term rentals: the conveyed properties must not be used for leases shorter than 12 months. Council also directed staff to pursue a zoning overlay (Patriot Place area) to streamline future infill if the pilot succeeds.