Bay City — The Bay City Housing Commission on Dec. 1 presented a plan to shift ownership of 193 scattered-site public-housing units into a nonprofit affiliate, Great Lakes Community Development Partners, a move the agency says will free federal allocation (‘‘Faircloth’’) authority and expand access to capital from HUD, MSHDA and private sources.

A representative of the Housing Commission (identified in the meeting as Mr. Phillips) told the City Commission the conversion is “largely a paperwork transaction” and stressed it “will not cause any displacement [of] public housing residents.” He said the commission will advance closing costs for the nonprofit and that the agency intends to preserve tenant protections, minimize recertification and avoid immediate rent increases at conversion.

Why it matters: The transfer would allow the nonprofit to compete for Low-Income Housing Tax Credits and other funding not available to a public-housing agency, officials said, and could free up the Housing Commission’s federal voucher/allocation authority to support new affordable development (the presentation cited Columbus Avenue as an example project). Presenters named two practical deadlines: a target to apply for tax credits on April 1, 2026, or as late as Oct. 1 if necessary.

Commissioners pressed for specifics. Commissioner Coopet and others sought clarification about the 193-unit total versus 151 buildings; presenters said the 151 are duplex buildings that together make up 193 units. Commissioner DeWitt asked whether the transferred properties would carry long-term affordability requirements; a staff speaker said deed restrictions would be recorded under the nonprofit and described an ‘‘80% deed restriction’’ and long-term housing-assistance contracts with MSHDA that, as presented, would continue in perpetuity.

Residents in public comment and commissioners also raised long-term questions about future rent levels and the possibility of later transfers to for-profit entities. Paul Kleinau, a resident who reviewed FOIA documents from a recent appointment vote, said he feared a private-equity ‘‘buy up’’ if controls weaken; no formal action on the housing plan was taken at the meeting.

What comes next: Housing Commission staff said they will follow up with residents through information sessions and maintain materials on their website. Presenters offered to meet individually with commissioners for technical follow-up.

Attribution: Details and direct quotations in this story come from the Bay City City Commission meeting transcript and public comments on Dec. 1, 2025.