Another 36 ‘working class’ homes to be built in city of Muskegon

Another 36 ‘working class’ homes to be built in city of Muskegon

"MUSKEGON, MI – A large West Michigan homebuilder plans to build 36 rental houses on lots scattered throughout the city of Muskegon that will be affordable to “working class” families...

• A (questionable) study released last year found there is a need for 3,000 additional housing units in the city over the next five years.

Edwin Allen will keep rents for the mostly four-bedroom, two-bathroom homes between $1,400 and $1,700 per month, according to information provided to Muskegon city commissioners.
The commission agreed to a new form of financial incentive on Tuesday, Jan. 23, that will allow Edwin Allen to construct the homes and not lose money on them...

• The financial incentive involves foregoing traditional property taxes in exchange for a fee equal to 10% of rents collected on the homes. Known as “payment in lieu of taxes” – or PILOT – the incentive previously was only available to housing developments qualifying for low-income housing tax credits, which “almost always” involve large apartment complexes, commissioners were told...