A representative of the Bay City Housing Commission told the Bay City City Commission on Dec. 1 that the agency plans to transfer the remaining 193 public-housing units out of the public-housing program into a nonprofit affiliate, Great Lakes Community Development Partners, to access funding sources not available to a public housing agency. The presenter said the move will free federal housing authority tied to those units and allow the authority to be used to leverage new affordable housing development.

The presenter said the agency converted roughly 71% of its portfolio previously and that the remaining scattered-site portfolio — described in the presentation as 151 buildings (42 duplexes and 109 single-family houses) totaling 193 units — would be repositioned. “No impact to current public housing residents, minimal recertification requirements, no loss of eligibility, no increase in rent, no loss of rental assistance,” the presenter said, describing tenant protections built into the plan.

Why it matters: the transfer is intended to unlock financing options — including applying for low-income housing tax credits through the Michigan State Housing Development Authority (MSHDA) — that the housing commission said would support new development such as a project on Columbus Avenue. The presenter said the agency targets an April 1 LIHTC application and that award decisions typically arrive in July or August, with construction contingent on financing and permitting.

Commissioners asked for clarifications. Commissioner Kubit asked about counts and program differences; staff clarified that building and unit counts differ (151 buildings, some duplexes) and that rental assistance under the new structure will be project-based and administered with MSHDA involvement where HUD voucher administration is required. Commissioner DeWitt asked whether deed restrictions would preserve long-term affordability; a staff member said an 80% deed restriction would be filed and that deed restrictions are expected to remain in perpetuity, with long-term housing-assistance contracts also contemplated.

Public commenters raised concerns about long-term protections. Paul Kleinout, who reviewed recent appointment voting procedures and said he feared private-equity buy-ups, asked whether the transferred homes could face rent increases later and urged safeguards beyond the presenters’ assurances. Housing staff said protections would be maintained through deed restrictions and long-term assistance contracts.

What’s next: the housing commission said it will continue resident information meetings, maintain materials on its website about the repositioning plan, and pursue financing steps that would determine the schedule for new construction. The presentation did not include a formal vote by the city commission on the repositioning itself.