Bay City Housing Commission outlines plan to transfer 193 public‑housing units to nonprofit, says tenants protected

A Bay City Housing Commission official told the City Commission on Dec. 1 that the agency plans to reposition the remaining 193 public‑housing units into a nonprofit structure to free up federal housing authority and access new capital.

The presenter said the reorganization — part of a decade‑long repositioning that already converted roughly 71% of the authority’s inventory — is “largely a paperwork transfer” and stressed it is intended to preserve residents’ current benefits. “No impact to current public housing. No recertification requirements. No loss of eligibility,” the presenter said.

Why it matters: Officials said the transfer will let the housing authority access programs and financing not available under traditional public‑housing rules, including potential low‑income housing tax‑credit financing for new development on Columbus Avenue. That access, proponents said, is necessary to build additional affordable housing in Bay City.

What proponents said: The presenter told commissioners the plan uses a Section 18 disposition pathway (a federal HUD mechanism referenced during the presentation) coupled with nonprofit ownership — a model the presenter described as common nationally and one they said would protect tenants while freeing up 193 units of federal authority for new development. The presenter also said the closing costs to convey the portfolio to the nonprofit are expected to be minimal and that maintenance staff and day‑to‑day property management would largely remain the same.

Questions and concerns: Commissioners sought details on unit counts and program differences. Commissioner Kubit asked whether Bay City “only has a 193 units” of remaining federal authority and whether tenants would move from one set of rules to another; staff replied the program would be “still regulatory” and nuanced but that tenant protections and eligibility would not materially change. Commissioners also asked about deed restrictions and long‑term affordability; staff said deed restrictions would be filed when the properties leave the public‑housing program and that an 80% deed‑restriction figure was referenced as part of the disposition discussion.

Timeline and next steps: Housing staff said they have held resident information meetings and will continue outreach. They said they expect to apply for low‑income housing tax credits April 1, with awards typically in July or August and a several‑month closing window — placing potential construction or financing activity into 2026 if awards are secured.

What remains unclear: The presentation included several numerical references (the 193 units, 151 buildings, and the 112–128 new units estimated for a Columbus Avenue project) that staff acknowledged would be refined in follow‑up materials. Officials repeatedly offered to meet with commissioners and residents for more detailed, unit‑level information.

The commission received the presentation and asked questions; no formal commission vote on the repositioning plan occurred at the meeting.