Groundbreaking held for workforce housing development in Hillsdale

HILLSDALE — Hillsdale’s leaders joined with representatives from Portage-based Allen Edwin Homes Monday for a groundbreaking ceremony on Hidden Meadows Drive where middle-income housing for the workforce will be built.

Allen Edwin Homes first came to the city in the fall of 2023 with their plan to build three duplex-style residential units that will ultimately house six families with occupancy available in early 2025.

The project is the first in Hillsdale to take advantage of new state legislation which allows developers to seek payment in lieu of taxes agreements with municipalities in order to entice housing development.

The council approved a 10-percent PILOT payment over 15 years for Allen Edwin Homes’ project in Hillsdale, which came under scrutiny of Councilman Joshua Paladino when the council took up the issue on Nov. 20, 2023.

Paladino, who opposed the concept of the PILOT payments, ultimately voted no on the resolution to allow the project to proceed while the rest of the council voted aye.

“Hillsdale is experiencing a surge of energy as investment in the community continues to grow,” Brian Farkas, director of workforce housing for Allen Edwin Homes, said. “Allen Edwin Homes is thrilled to be part of this momentum by bringing more housing to Hillsdale.”

Previously, the PILOT incentive only applied to developments qualifying for low-income housing tax credits, which typically involve large apartment complexes. By contrast, this new tool can be applied to smaller apartment developments and single-family homes, city officials said.

The agreement with the city requires Allen Edwin to keep rents affordable to families earning up to 120% of the median household income for 15 years.

“We are excited to be working with Allen Edwin Homes to bring additional housing options to Hillsdale,” Hillsdale Mayor Adam Stockford said. “Housing is a need, not only in Hillsdale but across the entire state. This project builds on the recent growth we’ve been seeing as investors realize the opportunity our community has to offer.”

A state housing report published in 2022 found approximately 47% of the state’s housing units are more than 50 years old and that Michigan needs 190,000 more units to meet current housing needs. The report also found, as of 2019, about 26% of Michigan residents were considered “housing-cost burdened” because they spent more than 30 percent of their income on housing.

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“Preserving our aging housing stock and developing new units are both critically important to tackle our housing shortage and grow our local economy,” Hillsdale City Manager David Mackie said. “These new homes will help address the need for affordable housing for working class families, young professionals, or retiring residents who are looking to downsize. This project is a significant step forward.”

The developer has proposed for the second phase a mix of “for sale” and rental single-family homes on the remaining acreage in the Three Meadows Subdivision they currently have under exclusive option.

— Contact Reporter Corey Murray atcmurray@hillsdale.net or follow him on X, formerly Twitter: @cmurrayHDN.