Affordable housing for parking on the south side of Grand Rapids in sight

GRAND RAPIDS, MI – As part of an ongoing effort to address housing needs across the city, a proposal to build affordable housing is being considered in a parking lot on Grand Rapids’ south side.

Samaritas, a nonprofit that provides public housing, foster care and more, has expressed interest in purchasing the city-owned property, which could potentially become about 35 affordable housing units, Grand Rapids city councilors were told at a July 16 committee meeting.

The 0.93-acre, 127-space parking lot is located approximately at 22 Cutler St. SW, just off Division Avenue in the Burton Heights neighborhood. There is also a city-owned parking lot to the north next door with 97 spaces, but that would remain as is to allow for continued public parking, said Grand Rapids Deputy City Manager Kate Berens.

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The city government has concluded that the Burton Heights South property is not the best use in light of the long-term vision for the property, Berens said Tuesday.

Berens said the proposed housing project is consistent with the city’s long-term South Division Corridor Plan, which aims to create more housing and encourage greater use of public transportation and bicycling, among other things.

While the parking lot redesign would result in the loss of 127 parking spaces, Berens said there are parking spaces on surrounding streets, as well as bike lanes and a bus route, to offset that loss. Division Avenue is the main corridor for the Rapid Silver Line bus route.

“The nice thing is that it’s on the Silver Line, and if you look at our numbers on micromobility usage, whether it’s scooters or e-bikes, you see that they’re being used heavily, especially along the Division,” Mayor Rosalynn Bliss said Tuesday. “So I think that by continuing to have additional transportation available at an affordable price, we’re also reducing the need for some parking.”

Berens said Grand Rapids city officials first highlighted the parking lot as a possible site for redevelopment during Developer Day 2022, an annual event hosted by The Right Place. Samaritas has since expressed interest in redeveloping the property in partnership with Pinnacle and Chesapeake Community Advisors.

Although the project is still in the preliminary planning phase and nothing has been finalized yet, Samaritas and the city government have already developed an initial vision for the development of an affordable housing project with about 35 units, Berens said.

Samaritas officials did not share preliminary plans on the project with MLive/The Grand Rapids Press, but Chief Advancement and Strategy Officer Kelli Dobner said more details would be announced once plans are finalized.

“As one of Michigan’s largest nonprofits supporting vulnerable populations, Samaritas understands the need for affordable housing options in communities across the state,” Dobner said in an emailed statement.

“The organization currently operates 17 affordable housing communities across Michigan and plans to double that number over the next decade. Samaritas continues to evaluate sites for new affordable housing communities, including here in Grand Rapids, and we will share more details as they become available.”

The parking lot is currently zoned as a mixed-use commercial area, allowing both commercial and residential uses. Zoning regulations allow buildings up to four stories and up to 40 residential units.

During Tuesday’s meeting, several commissioners asked city staff to contact local business owners in the area to determine if there are any concerns about the loss of parking or construction that would occur if the proposal were passed.

“I just want to make sure that happens because I believe the small businesses there will be just as affected by the loss of parking as other parts of the city,” said Third District Commissioner Bing Goei.

After informing the City Commission of the planned sale of the property, Berens said city staff would now move on to the next step of the process, which includes contacting stakeholders such as local business owners and neighborhood groups for feedback on the proposal.

The city will also determine the market value of the property before listing it on its website to generate interest and see if there are other interested buyers, Berens said.

Berens said there is an accelerated timeline for the potential sale because Samaritas plans to apply for the federal Low Income Housing Tax Credit (LIHTC), a tax incentive for real estate investors administered here by the Michigan State Housing Development Authority.

To apply for the next round of LIHTC, Berens said the city must transfer ownership of the property by September. That means the final purchase agreement could be presented to the city commission as early as Aug. 27, she said.