By David Fleet
Editor
Goodrich- Coordinators of a proposed senior housing project recently upped the ante for the village.
A yearly donation of as much as $15,000 could be on the way to village coffers if developers from Goodrich Haven, L.L.C Limited Dividend Housing Association can reach an agreement to build.
At issue is a expected proposal to rezone vacant property from Low Density Residential to a Residential Planned Unit Development on about 5.5 acres on the north side of Hegel Road about 600 feet east of M-15.
If approved, the Goodrich Haven Senior Living complex, a single senior housing building with 62 units, will be built on the property. The complex is for low-income seniors under the guidelines of the Michigan State Housing Development Authority. The complex would feature two-bedroom and one-bedroom apartments. The MSHDA funded project would target senior citizens 62 years and older who are capable of independent living.
On Feb. 27, a recommendation was OK’d by the village planning commission for PUD zoning by a vote of 7-0. However, on March 6 the village council by a 3-2 narrowly defeated the zoning change halting the project. The same night, council also denied, by a 5-0 vote, a Low-Income Housing Tax Program that would have collected about $2,500 per year based on the estimated $9 million value of the project. The LIHTP was for 15 years.

On Monday night, in an effort to overcome the project sticking point regarding taxes paid, Gregory Behling, managing member of the Goodrich Haven project responded to the village council through a letter.
In addressing the effect the required use of the Payment In Lieu Of Taxes for a development funded through MSHDA of reducing the amount the village receives as taxes, Goodrich Haven LLC proposes to donate to the village funds annual in the sum $10,000 per year, wrote Behling.
Shannon R. McCafferty, village council and planning commission member said the proposal will require evaluation.
“We appreciate the proposal,” said McCafferty. “However, right now the rezoning needs to go back to the planning commission and then, if approved, the village council before any decisions can be made. It’s a long process with plenty of questions to be answered and as a council the project will be discussed.”
Under a PILOT agreement, a developer can forego paying traditional property taxes, in exchange for building affordable housing in this case Goodrich Haven. The PILOT projects qualify for federal and state funding through MSHDA. They are also audited annually to ensure they maintain affordable and occupation requirements.
In addition Behling wrote, a payment of $5,000 will be paid when the management company for the development certifies that annual occupancy of 62 apartments equals or exceeds the projected occupancy of apartments by the Michigan State Housing Development Authority of 92 percent or 57 apartments.
Jerome Jay Allen, director of Devonshire Advisors, a Rochester Hills company coordinating the project, responded.
“It’s a fair deal for the village,” said Allen. “The payment can be made directly to the village because it will come from a reduction of Goodrich Haven net income, taxable income and cash flow.”
The proposed management company, Piper Management will confirm to the village and Goodrich Haven the percentage annually in writing.