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Portage agrees to pass through $5 million state grant to River Caddis phase 1 housing project
Summary
City staff and council approved a memorandum of understanding to pass $5,000,000 appropriated by the state to River Caddis Communities for a roughly 70-unit affordable housing phase, with fallback language if financing fails.
The Portage City Council voted Dec. 17 to approve a memorandum of understanding with River Caddis Communities to pass through $5,000,000 in state enhancement grant funds toward a proposed workforce housing development on Shaver Road.
City Manager Pat McGinnis said the appropriation was included in the 2025 Michigan state budget and that Representative Morse and Senator McCann visited city leaders to explain the grant—s intent, which staff said was to facilitate River Caddis phase 1, an affordable-housing project of about 70 units across from City Hall. "We were asked to serve as an intermediary pass through," McGinnis said, explaining the city—s role would be to provide local transparency and oversight.
Staff told council the project is expected to work in conjunction with Michigan State Housing Development Authority (MSHDA) tax-credit financing and that the $5 million would be a critical component to allow the developer to close. The MOU includes language proposed by staff and the mayor to ensure that if the developer cannot complete financing, the city could reallocate the funds to other affordable-housing projects in Portage rather than automatically returning the money to the state.
Council members pressed staff on timing provisions in the MOU, specifically clarifying that the developer must notify the city at least 90 days before state-imposed deadlines if the project cannot move forward so the city can pursue alternate uses. The city attorney agreed to refine the MOU wording to make the notification timeline explicit.
A motion to approve the MOU passed by roll call. Staff said they expect the developer to be ready to close within three to six months and that the city would work with the state to finalize the grant agreement and any terms.
