Commission re‑approves split lot sales to small builders for workforce duplexes and ADUs

The commission unanimously re‑approved several previously approved lot sales (originally approved in July) on Nov. 10 after developers said anticipated Michigan State Housing Development Authority (MSHDA) funds had not yet been released. Charter Homes and smaller local builders will proceed with adjusted lot‑sale packages and financing arrangements to build stacked duplexes and accessory dwelling units (ADUs) intended for workforce housing.

Developer representative Karen Novak (Charter Homes) and contractor Eric Payne (Suiyan Properties) described planned units: three‑bedroom, three‑bath duplexes about 1,100 sq. ft. aimed at households in the 70–80% AMI range and one‑bed ADUs that staff said could serve 50–55% AMI individuals under pilot agreement terms. Novak said the rental math currently requires those target rent levels to service mortgages and cover construction costs, and that developers are applying for additional grants to lower rents.

Commissioners used the discussion to reiterate the city’s lot sale policy (recently updated) and emphasized the availability of city lots to residents under the sale policy (lots sold at 75% of true cash value if a buyer commits to build). Several commissioners asked staff to place lot sale policy changes on the Land Policy Committee (LPC) agenda to consider further resident‑first preferences and to clarify adoption vs sale distinctions.

The motions to authorize the sales passed by roll call for the packages presented. Staff said these small, incremental projects are intended to increase housing supply and diversify housing options in neighborhoods.

Next steps: developers will seek final financing and permits; staff will monitor grant progress and return to the commission if sale or pilot details change.