A proposal to build more than 60 new rental units in downtown Lansing is receiving a state tax credit.
The Lansing Housing Commission has proposed constructing a building with affordable and market rate apartments along Kalamazoo Street between Grand Avenue and Cherry Street, the site of a vacant building that used to belong to Davenport University.
56 units in the development project would be designated for lower-income residents, and seven would be market-rate apartments.
The project, called Riverview 220, is receiving support with a $1.5 million tax credit from the Michigan State Housing Development Authority.
LHC Executive Director Doug Fleming said the Lansing area has "a very big demand" for more affordable housing options. He said the project would be the city's first mixed-income housing property.
Fleming added the building's location will keep residents' daily necessities in close proximity.
“People can walk to food and groceries and all the other stuff, and it’s also right across the street from the (Capital Area Transportation Authority) bus station, so for those that need transportation, it’s gonna be literally right outside their doorstep,” he said.
The building will also include space for commercial and retail businesses. The project will comply with MSHDA parking requirements with more than 60 vehicle parking spots.
Under MSHDA requirements, the building's affordable rental units will be required to remain tailored to lower-income residents for 40-50 years, even if ownership of the property changes.
Fleming said the project is unique because it will be able accommodate larger families with two and three-bedroom apartments.
“We have a significant shortage in the city of threes, fours, and five (bedroom apartments) if they’re out there, there’s not a lot of those, for people who are looking for affordable housing, so basically mid-size families,” he said.
Fleming expects construction to begin next year, with the project expected to be completed by mid 2026.
Officials in the city are backing three other development projects downtown that will have dedicated affordable workforce leases.
