The Detroit City Council gave the green light to two housing proposals, one that aims increase the level of affordable housing is financed and another that review the city’s rental ordinance.

Last month, city officials, including Detroit Mayor Mike Duggan and several council members launched the so-called PILOT Fast Track program, a plan that would offer property tax cuts to developers based on rental prices. months beforethe city, in an effort to crack down on negligent landlords and boost inspections, proposed an amendment Renew your rules to regulate rental properties.

On Tuesday, council members overwhelmingly approved both ordinances, which seek to address a wide range of housing issues in Detroit.

Here’s what you should know:

The plan to ‘accelerate’ affordable housing

He fast track PILOT program aims accelerate the development of affordable housing in the cityand keep those homes affordable for the long term. The plan offers property tax cuts to developers based on rental prices, meaning the more affordable the units, the larger the tax reduction. Eligible developers could receive a tax break for up to 15 years and could renew that reduction for an additional 15 years.

The proposed city ordinance would essentially expand access to what is known as Payments in Lieu of Taxes, which is currently available only on certain projects that use federal dollars. City property tax rates on affordable housing developments would be tied to rental prices, rather than property value. according to a September press release.

Developers would also have to commit to keeping affordable rents for households below 120% of the price. area median income (AMI), or a three-person household earning $103,680. The area median income is a regional measure established by the federal government to determine housing affordability.

“It’s a turning point because if we’re going to move this city forward, if we’re going to finish our commercial corridors, if we’re going to house those who need it and then support those who want to choose to elevate we have to start somewhere, and I think that today is that beginning,” Councilman Fred Durhal III, one of the co-sponsors of the property tax reduction proposal, said Tuesday.

The City of Detroit’s Office of the Chief Financial Officer determined: in a note to the councilthat the ordinance would have an “undetermined fiscal impact.” That means there is not enough data to measure the future effect on revenue or spending, Donnie Johnson, deputy budget director for the city of Detroit, told council members.

“It’s very difficult for us to quantify what the revenue (property tax impact) would be but we also know, on the other hand… that stable housing is a strong determinant of economic and health outcomes,” Johnson said.

During the public comment period, several housing developers spoke in support of the ordinance, noting that it would help developers speed up their projects. A handful of speakers rejected the proposal and asked for more time to hear from residents.

Sonya Mays, founding executive director of Develop Detroit, said nonprofit developers face the high cost of property taxes and the ordinance would alleviate that.

“It will allow us to better manage our properties and I think it will add a valuable tool for the small developers working in our neighborhood, so they can also add more housing, more quality housing, to the people who need it most,” he said. saying.

Projects receiving the tax cut must be up to code, maintain affordability and would be subject to an initial and annual compliance review by the city of Detroit Department of Housing and Revitalization, according to the ordinance.

The eight councilors who were present Tuesday voted unanimously to approve the proposal.

Further: Mayor Duggan, Council Members Unveil New Plan to Fund Affordable Housing

The plan to renew the rental conditions

The Detroit City Council approved proposed changes to city guidelines for rental properties, 7-1.

The amendment would crack down on landlords with repeated violations, renew a program that allows tenants to put their rent payments into an escrow account if their home is unsafe and modify lead inspection requirements.

In the last five yearsThe city has issued 100,000 blight tickets, but is struggling to collect those fines. According to a comprehensive report from March According to the Center for Community Progress, a national nonprofit, the city has collected less than 20% of fines owed for blight violations.

The ordinance would increase some fines and add penalties to strengthen enforcement.

For example, it would increase the fine for a homeowner who fails to obtain a certificate of compliance from $250 for the first violation to $400, from $500 to $650 for the second violation, and from $1,000 to $1,150 for subsequent violations.

The ordinance would also allow the city to file a lien on a property for unpaid fees if the owner defaults. a new provision officials It was expected to give more strength to the ticketing process.

The ordinance would require a combined housing condition and lead safety review of all rental properties in the city, including a visual inspection for damaged paint and dust, Andrea Taverna, policy director, told council members. from the mayor’s office.

The ordinance eliminates the requirement for an initial lead inspection and risk assessment at the time of rental registration, known as a LIRA.

The lead provision in particular faced pushback from Lyke Thompson, director of the Center for Urban Studies at Wayne State University, who opposed the ordinance, raising concerns about what he said are reduced testing requirements lead.

“Implementation of this ordinance could result in more children suffering from lead poisoning,” Thompson said Tuesday.

Detroit’s lead requirement is strict for landlords and has been a factor in landlords not meeting rental requirements, according to the Center for Community Progress report. found.

Taverna said the city’s inspection proposal is based on national best practices. Earlier this year, he noted Grand Rapids, Toledo, Pittsburgh, Philadelphia and the states of Maryland and New Jersey.

He said Tuesday that for the 25% of the city that has the highest prevalence of lead poisoning cases, officials would step up testing by taking dust samples in addition to visual inspections.

“We would do even more intensive testing to identify lead hazards and make sure they are addressed before someone is poisoned,” Taverna said. The ordinance would also include expanding the dust sampling requirement to the entire city, from 25%, within six years of the ordinance’s passage.

Further: Detroit wants to change its rental ordinance: what you need to know.

Contact Nushrat Rahman: [email protected]. Follow her on X: @NushratR.

This article originally appeared in the Detroit Free Press: Detroit City Council approves two major housing proposals