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Commission approves transfer to housing commission to unlock $32M in Bus Avenue rehabilitation
Summary
The commission approved transferring the city's small interest in Bus Avenue property to the Benton Harbor Housing Commission so the project can access federal RIAT/RAD-style financing; officials said the $32 million redevelopment will improve public housing and generate modest annual revenue for the city over 15 years.
The Benton Harbor City Commission voted to transfer the city’s limited interest in the Bus Avenue public housing parcel to the Benton Harbor Housing Commission to enable a federally supported redevelopment. Commissioner Henderson made the motion to approve the transfer and Mayor Pro Tim Turner provided support; the motion carried on a roll-call vote.
Commissioners and staff described the proposal as a partnership under a federal rehabilitation program (referred to in the meeting as the RIAT program) that allows public housing authorities to partner with private developers and lenders to secure capital for major improvements. City officials cited roughly $32 million in planned improvements to the property and said the transfer is required to meet the federal program’s conditions.
Officials said the city’s ownership interest in the parcel is small and that the Housing Commission operates as a separate entity with its own board and executive director. Under the agreement discussed at the meeting the Housing Commission would have a first right of refusal after 15 years; the city would receive $50,000 per year (adjusted for inflation) under the pilot terms discussed during the meeting, which commissioners said would amount to a minimum of about $750,000 over 15 years.
Commissioners emphasized the project’s potential to improve living conditions at Harbor Towers and other properties and noted prior federal attention and advocacy for the rehabilitation. No additional implementation details (contractor names, precise legal descriptions beyond a minor technical clean-up) were finalized at the meeting; staff said required federal and engineering reviews are underway and that final legal descriptions would be added before documents are executed.
The motion passed by roll call; commissioners present voted in favor and discussion emphasized oversight, passing plan review, and the need to ensure tenant protections and construction standards.
The commission directed staff to complete any outstanding legal and engineering reviews and proceed with the transfer consistent with federal program requirements.
