Gov. Whitmer Announces Funding for 330 Units of Affordable Housing Coming to Downtown Ann Arbor

FOR IMMEDIATE RELEASE

May 19, 2026

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Gov. Whitmer Announces Funding for 330 Units of Affordable Housing Coming to Downtown Ann Arbor

The Michigan Strategic Fund Board approved a Transformational Brownfield Plan that will support the development of a mixed-use high rise apartment building

LANSING, Mich. - Today, Governor Gretchen Whitmer and the Michigan Strategic Fund (MSF) Board announced approval for a Transformational Brownfield Plan (TBP) to support the development of a 20-story, mixed-use high rise apartment building in Downtown Ann Arbor (Washtenaw County).

OVERVIEW: Located at 350 S. Fifth Ave., the project will feature 330 units of affordable housing and over 6,500 square feet of commercial space; when complete, the project is expected to result in $209.4 million in total capital investment.

"Every Michigander deserves a safe and affordable place to call home," said Governor Gretchen Whitmer. "This brownfield redevelopment project will build 330 units to address the critical need for more housing in Ann Arbor. Support for this project underscores our commitment to helping more Michiganders find quality, affordable housing. I'm proud of our work to build or rehabilitate more than 90,000 homes in communities across Michigan, more than any administration in history. Let's keep working together to help more people 'make it' in Michigan."

Over the past eight years, transformational brownfields have been a versatile tool for local communities to transform vacant or underutilized spaces into tax-generating ones. Since its launch in 2018, the Transformational Brownfield Plan program has supported 12 projects that are projected to revitalize 15 million square feet, create just over 6,200 housing units, and over $7.1 billion in private investment.

"Developing attractive, vibrant places where people want to live and work is a key pillar of Team Michigan's Make It in Michigan economic development strategy," said Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair. "Access to affordable housing is essential to executing the state's economic development strategy and creating greater economic opportunity for all Michiganders. This project in Ann Arbor will add much-needed housing options where residents live closer to jobs, services, and amenities. On behalf of the MEDC, we extend our gratitude to the risk-taking development team, Governor Whitmer, the members of the MSF Board, the Michigan Legislature, and our local government and economic development partners for their support of this impactful placemaking project."

The total TBP incentive package in the amount of $29.98 million will be reimbursed over 30 years, divided by revenue type including:

• Local and school property tax capture in the amount of $1,561,743, with state capture limited to $845,802.

• A maximum of $2,371,104 in construction period tax capture revenues.

• A maximum of $3,059,371 in construction period sales and use tax exemptions.

• A maximum of $22,991,564 in income tax capture revenues, withholding tax capture revenues, and sales and use tax revenues (post-construction) to be reimbursed over 20 years.

WHY IT MATTERS: The development of affordable housing continues to be a priority for Governor Whitmer, the Michigan legislature and the MEDC. The apartment units will be a mixture of one- and two-bedroom units, all of which will be reserved for individuals and families with an average income between 30-80% of the Area Median Income (AMI) for Ann Arbor. Additionally, 120 of the units will accept project-based vouchers that allow tenants to pay 30% of their AGI as rent.

The site plan will also incorporate the adjacent Blake Transit Center, a major public transportation hub in Downtown Ann Arbor, adding greater connectivity for future residents.

Fifth Avenue MI LDHA LLC is a partnership between Ann Arbor Housing Development Corporation (AAHDC) and Related Midwest, a developer specializing in affordable properties ranging from best-in-class city centers to residential and mixed-use properties. To date, Related Midwest has developed, acquired, and preserved more than 10,000 affordable residences in the Midwest, and over 60,000 nationally.

The AAHDC is a nonprofit organization established in 1979 by the Ann Arbor Housing Commission to address the shortage of safe, decent, and affordable housing for low-income individuals and families in Ann Arbor and surrounding communities, and they play a key role in expanding affordable housing options by leveraging public-private partnerships.

WHAT THEY'RE SAYING:

"The redevelopment of 350 S 5th is a high priority for the City of Ann Arbor," said Jennifer Hall, executive director of the Ann Arbor Housing Commission. "The development is a collaboration between six public entities including the City of Ann Arbor, Ann Arbor Housing Commission, Ann Arbor Downtown Development Authority, Ann Arbor Area Transit Authority, the State of Michigan's MEDC, and MSHDA as well as the federal government through HUD. The transformational brownfield is the critical final gap financing to enable this 330-unit affordable housing, transit-oriented development to begin construction. Thank you MEDC and the State of Michigan."

"We are proud to help build Michigan's largest all-affordable residential development in more than 40 years. As the Midwest's largest developer of affordable housing, Related Midwest is committed to creating communities that strengthen neighborhoods and reflect local priorities," said Michael Kaplan, VP of Development for Related Midwest. "Ensuring that the people who work in Ann Arbor can also afford to live there makes this not only a critical housing development, but also an important piece of economic development infrastructure that will support the continued growth and vitality of downtown Ann Arbor."

"It is hard to imagine a project that aligns more clearly with the City's goals and values: affordable, high-density housing near jobs, amenities, and transit, built sustainably and designed to connect more people to the cultural and economic opportunities that make Ann Arbor such a special place to live," said Joe Giant, director of Economic Development for the City of Ann Arbor. "Just as importantly, it creates housing opportunities for many of the people who contribute every day to our community's quality of life, allowing them to live closer to where they work, participate more fully in community life, and continue contributing to the vibrancy that makes downtown Ann Arbor so strong. It is encouraging to see partners from the local, state, federal, private, and philanthropic sectors come together around this effort. We are especially grateful for our partnership with the Michigan Economic Development Corporation and their recognition of the transformational impact this project will have."

"Michigan is more than 119,000 housing units short of meeting current demand, and developments like this are the kind of bold, collaborative investments we need to close that gap," said Amy Hovey, CEO and executive director of the Michigan State Housing Development Authority. "MSHDA is proud to support this long-awaited project through our Direct Lending Program, multiple financing tools, and 4% Low-Income Housing Tax Credits. Bringing 330 new affordable homes to downtown Ann Arbor, including units accessible to families using Section 8 vouchers, will help more residents live closer to jobs, services, and opportunity while strengthening the long-term vitality of the community."

During the May MSF meeting, the Board also approved support for EV manufacturer Slate Auto's expansion in Troy (Oakland County), robotic 3D concrete printing company Alquist 3D's new manufacturing and R&D facility in Detroit (Wayne County), and new Fenton Food and Beverage LLC facilities Fenton (Genesee County) that, combined, will result in 650 new jobs and over $97 million in capital investment in the state.

NOTE FROM THE MEDC: Investment and job numbers represent the commitment made by the business to the state of Michigan. Terms will be formalized in a performance-based project agreement, with funds disbursed as reimbursement based on eligible expenditures, and are subject to amendment or cancellation if the commitments are not met due to risks or uncertainties. The Michigan Economic Development Corporation provides a public annual report on agreements and their status to the state legislature.