Commission approves workforce housing tax-exemption and restrictive covenant for three small projects

The Muskegon City Commission on Oct. 14 approved a workforce housing tax-exemption request under the state program for three small projects (addresses listed in the packet) and executed a related restrictive covenant that ties unit rents and occupancy to workforce-housing income limits.

Development Services Director Jake Ekholm said the package covers eight total units (three duplexes and two accessory dwelling units) and uses the workforce-housing provision in state law that provides a 15-year term and a formula tied to collected rents. Ekholm said the developer intends to target tenants in the 80 to 120 percent area median income (AMI) range and that rents for the units were set to align with that targeting: ground- and second-floor larger units are estimated at $1,400to $1,500; the one-bedroom ADUs are estimated at roughly $785.

Ekholm noted the profile of these small duplex-plus-ADU projects differs from larger single-family pilot projects the city has approved because the smaller format provides missing-middle housing at moderate rents while fitting into existing neighborhoods. Commissioners asked staff to correct a typographical address error in the draft resolution (commissioners confirmed the correct Amity addresses will appear in the final documents).

The commission approved the resolution and authorized the mayor and clerk to sign; they also approved the workforce-housing restrictive covenant for the same properties.