To order the planning and economic development standing committee on today, Thursday, July 9th.

Madam Clerk, will you please call the role?

Councilmember Letitia Johnson.

Present.

Councilmember Gabriele Santiago Romero.

Member Santiago Romero did indicate she would not be present.

Madam Chair, you have a quorum present.

Having a quorum present, we are back in session and picking up on the agenda with unfinished business beginning with line item 9.1.

Line item 9.1 is the status of council member Angela Whitfield Callaway submitting memorandum relative to request for resolution in support of Senate Bill 1053.

There is a request for a one-week bring back.

Is there a motion?

Motion.

Hearing no objections, that action shall be taken.

Without objection, I'd like to combine line items 9.2, 9.3, and 9.4.

There is a request for a two-week bring back.

Is there a motion?

Motion.

Hearing no objections, that action shall be taken.

That brings us now to new business and line item 9.1, which is contract number 6005951-8.

100% opioid settlement funding.

Amendment number three.

This is a one-year renewal for drug use intervention counseling services.

Contractor is families against narcotics.

Contract period through August 28th, 2027.

Contract increase amount 1 million 25,725.

Is there a motion to approve or discuss?

Motion to approve.

There's a motion to send line item 10.1 to formal with a recommendation to approve.

Hearing no objections, that action shall be taken.

Line item 10.2, contract number 6007459-a1.

100% CDBGDR funding.

Amendment number one to provide an increase of funds and add contract terms to oversee the rehabilitation and construction of public housing units.

Contractor, Detroit Housing Commission.

Contract period through December 31st, 2030.

Contract increase amount two million dollars.

Is there a motion to discuss?

Motion discuss.

Discussion.

Yes, good afternoon through the chair.

We do have Irene Tucker from DHC Online as well as Gordon Pearson.

Thank you.

If we can promote them, both are promoted as panelists, madam chair.

Thank you.

Good afternoon.

Please introduce yourself for the record.

Good afternoon.

I'm Gordon Pearson.

I am the CDBG Disaster Recovery Director with the Office of Development and Grants.

Afternoon.

Good afternoon.

So I know this contract I believe is providing support for various sites.

At this time, we're just starting the grant for the whole um site rehabilitation.

So outside of the normal day-to-day maintenance that we do on a normal um progression, um, we're doing that, but specific to the actual grant.

Um, there is in this early stages of planning following the HUD guidelines for redevelopment.

And Miss Tucker, is this for a particular facility of yours or multiple?

This will be for multiple, and as you well know, parkside is one because you've been very supportive through the chair.

Um, and that's just uh getting started.

Um we're still through the HUD process.

You still have to go through financing all these different things.

So the biggest thing there is that we have a sign up, you know.

Um, yeah, and hopefully, Mr.

Jemerson will be joining shortly as well.

Thank you.

Mr.

Jemison is fine.

Um, okay.

I just wanted to see if there was any additional information that you had that you could share, but I do understand it's a significant undertaking that you all are undergoing.

Do you know offhand how many units in total you are improving?

Through this grant that's applicable under um the support of the city and following the um guidelines for the exact grant.

There's over a thousand units.

Okay, and coming online will be over probably two hundred new units.

Okay, all right, excellent.

I know there are uh there's a great need for them as you well know.

So looking forward to uh future updates just so we know how things are progressing and we can direct residents uh and refer them accordingly.

All right, thank you so much.

Pro Tim Young, is there a motion on line item 10.2?

Motion with discussion.

Uh microphone, please.

Uh, continue discussion.

Pro Tim Young?

Motion discussion, thank you so much.

I just want to know is there a gant chart that we can expect to see in terms of when you expect to complete these projects through the chair, we will ensure that you receive that.

Thank you so much.

No, excellent.

I appreciate that.

Um, also I just wanted to ask do we have a um analysis of what this means for the um property values that could potentially increase in these areas.

Uh do we have uh analysis of what this would be in terms of the um neighborhood financial stability index terms of income growth, bill payment stability or or uh savings growth or things that nature at all?

Uh through the chair, that's um definitely something that we can uh discuss and get to you, but initially through the chair, really is just giving our residents what they deserve uh from a rehabilitation status on.

If I use parkside as an example, parkside is so dilapidated, and we're trying to ensure right now everybody still have a new air conditioner.

We're trying to keep the residents very you know, um their satisfaction level and their living conditions where it needs to be.

The whole purpose of this program not only to insite a better living condition, but also to you know branch out and make the community better.

So um, Mr.

Gordon, I don't know if you have any additional questions, but we will take this information down, Mr.

Young, and make sure you you have what you um have requested or timeline for it uh through the chair.

Yeah, I appreciate that.

Um also uh if you could just give me like a estimate of an area deprivation index of this neighborhood, what this project will have on the neighborhood, and um, you know, maybe some uh analysis in terms of spin-off jobs from this as well.

I appreciate it.

Okay, thank you so much.

I'll take that back to the team.

Thank you through the chair.

Hey, thank you.

Pro Tim, is there a motion on line item 10.2?

I think I made the motion already, so I can make it again.

Motion to send line item 10.2 to formal with recommendation to approve.

Hearing no objections, that action shall be taken.

Thank you all for joining us.

Thank you so much.

And without objection, I'd like to combine line items 10.3 through 10.6.

Line item 10.3 is contract number 600 7796, 100% city funding to provide planning, organizational development, and site project readiness activities to develop plans for the creation/slash expansion of a community land trust within the boundaries of Mount Elliott to the west, St.

Jean to the east, Warren to the north, and Vernon to the south.

Contractor, Genesis Harbor of Opportunities Promoting Excellence, well known as Genesis Hope.

Contract period through June 30th, 2027.

Total contract amount 206, 360.

Line item 10.4 is contract number 6007 817.

This is for Detroit Cultivator Community Land Trust with a total contract amount of 300 2,780.

Line item 10.5 is for LIVE 6 Detroit.

Total contract amount 200,000.

And line item 10.6 is for North Corktown neighborhood association.

Total contract amount 222,000.

Is there a motion to discuss?

Motion to discuss.

Discussion.

Thank you, Pro Tim.

Who do we have who can just share with us?

I'm really excited to see CLTs providing getting support and preparing to do some phenomenal work throughout the city of Detroit.

Who do we have from HRD to share what's actually taking place?

Good afternoon.

Good afternoon.

Kegan Mahoney with the city's housing and revitalization department.

Thank you, Mr.

Mahoney.

If yes, if you could just share what we have in front of us really for the benefit of the general public.

Absolutely.

So for those who are not familiar, community land trusts are nonprofit community organizations that acquire and steward uh land uh over the long term, often for affordable housing purposes.

Uh so bringing um uh new affordable housing uh to the market, but retaining long-term ownership of the land itself in order to provide uh ongoing affordability as uh homeowners turn up turnover uh in those units.

So it's a way to provide lower income households, the opportunity for home ownership, uh, but ensuring that those uh housing units remain a community asset over the long term.

This is a model that's been increasingly used uh in across the country and in many uh cities uh and uh uh importantly, many cities and uh the state of Michigan have turned to community land trusts uh as a key tool for affordable homeownership.

Um so there's been a lot of energy in developing uh more community land trust capacity in the city of Detroit uh with a lot of advocacy and philanthropic investment in uh building awareness of the concept among the nonprofit community, and we've seen a lot of nonprofit organizations across the city uh start to explore and uh and receive philanthropic funding uh to do early stage uh development of community land trusts.

Uh so from the uh housing revitalization department, we're excited about uh community land trusts as an affordable housing uh tool in the toolbox.

Um many of these organizations are pretty early stage, and so when we look at the opportunities to convert these from idea to uh execution, there was some work that needed to be done from a planning and government governance uh development uh processes.

Uh so we issued a uh RFP uh last fall uh to identify community organizations who were pursuing community land trust models in order to uh execute uh planning contracts uh to complete that work with the goal of identifying opportunities for shovel ready community land trust development.

Uh so these contracts are a result of that competitive RFP process.

I will note there are two additional uh uh contracts that are in process that are not quite ready uh to be presented to the committee, but there will be a total of six uh uh uh contracts under this program to again uh identify um uh opportunities for community land trust development through planning and engagement uh at uh the local level and including uh community engagement market analysis and uh and um uh uh uh development planning, uh governance development, including developing the the develop the governance structure for community land trusts in these communities, and then early stage pre-development, uh so assessing the viability of uh development opportunities uh within the target areas, including early stage things like title work environmental assessments to assess the viability and uh and cost implications of community land trust development.

All right, excellent.

Thank you for that.

Um you share.

I know initially when um we were looking into this and and just knowing different organizations that were interested in creating a community land trust.

They all seem to be congregated in in one part of the city.

Um seeing more happening throughout the city.

Can you share whether or not these community land trusts are spread throughout the city as opposed to a concentration in any particular area?

So the ones that applied for this RFP process are generally speaking in areas that where there's been uh evidence of a uh increasing home prices uh that have raised the concern around uh inability for uh lower income and middle income households to be able to afford uh homeownership.

Uh so we are seeing uh increased uh uh or specific interest in this model in some of those uh geographies.

Um though they are um you know I would say some of them are are uh around the periphery of the greater downtown, um, but there are uh uh uh several of them that are in other uh parts of the city, including the the six mile and livernoy area um and the um the the uh lodge and davidson uh area, uh island view, uh North Cork Town, um uh north end and um uh in the area around Henry Ford Hospital are the the geographic focus of the land trust that applied for um this RFP.

Uh at this time uh we are not aware of other uh place-based community land trust uh uh efforts with a housing component that uh are at uh this stage yet.

Um though again, I believe that there is increasing interest in this as a model, and we would expect the potential for additional uh community land trust initiatives uh to emerge in other parts of the city.

Okay.

All right, thank you.

I think that is important.

Um, as I began working on the community land choice land trust ordinance and even the CLT fund, the thought for me has always been to create opportunities for homeownership opportunities, whether smaller houses, um entry level opportunities, but to give people the support and opportunity to um build equity for them to be able to grow their family, to move into a larger home, um, but really making sure that homeownership opportunities were available to everyone in the city who have a desire throughout the city.

Um quite honestly, I don't think there should be one neighborhood where if someone of a lower income uh wants to purchase a house, I think they should have that ability to do so.

And and that's really that was the thought for me around creating the uh community land trust fund and the ordinance.

So uh appreciate all the work, all of the work.

I know uh my team uh has been in a lot of communication with you and uh your team, and so we certainly do appreciate all of the work that you've put into this uh as you indicated, which is a tool in the toolbox to provide opportunities for homeownership for lower income families.

So thank you.

Absolutely.

We're excited to see uh how this progresses.

Excellent.

Pro Tim Young.

Is there a motion on line items 10.3 through 10.6?

Motion on the line of 2.3 through 2.6.

There's a motion to send line items 10.3 through 10.6 to formal with the recommendation to approve.

Hearing no objections, that action shall be taken.

Thank you again, Mr.

Mahoney.

Thank you.

Line item 10.7 is submitting report relative to public act 381 of 1996, a report for tax year 2026.

The information has been received.

Is there a motion to receive and file?

You see 2020.

2024.

Did I say 26?

Yeah.

Okay.

2024.

Uh there a motion to receive a file.

There's a motion to receive and file line item 10.7.

Hearing no objections, that action shall be taken.

Line item 10.8 is the annual home home ARP, CDBG DR, ARPA, CNI, AHD, and PF and CDBG.

Revision revised awards.

Is there a motion to approve or discuss?

Motion to approve.

There's a motion to send line item 10.8 to formal with recommendation to approve.

Hearing no objections, that action shall be taken.

Line item 10.9, submit a report relative to a request for a pro a progress report on the Fitzgerald revitalization project.

The information has been received.

Is there a motion to receive and file?

Motion to receive and file.

There's a motion to receive and file line item 10.9.

Hearing no objections, that action shall be taken.

Line item 10.10, submitting report relative to a follow-up on questions of the Detroit Land Bank Authorities Development Activities.

That information has been received as well.

Is there a motion to receive and file?

Line item 10.10.

Motion receive a file.

Hearing no objections, that action shall be taken.

Line item 10.11 is the property sale of 17302 through 336.

As well as 17325 through 43, Lamont, and 17314 through 20, as well as 17332 through 8 Healy.

Potentially being sold to 4600 Nancy LLC.

Is there a motion to discuss?

Motion discuss.

Discussion.

Good afternoon, Mr.

Trung.

Afternoon.

This is John Tron with Housing Revitalization Department, the Real Estate Division.

Hello, just um can you just share with us the intent of the um requester, the per the purchaser for the properties?

Yeah, 4600 uh Nancy L.

She's also known as Linard Syrup.

I'm not sure if you're familiar with them.

Uh you know, they've been in business in Detroit for a long time.

You probably may see their uh their trucks with the rainbow logo.

I think that they're basically the gold standard premiere folks for like sodom pop machines as well as syrups.

Um but this is uh for adjacent property.

Unfortunately, uh these vacant lots have been the target of a lot of legal dumping.

And so I know for Leonard syrup throughout the years, uh you know they've taken upon themselves to kind of maintain these lots, and the overall goal is to clean them up, fence it in, and uh additional parking.

All right, thank you.

Pro Tem Young, is there a motion on line item 10.11?

Motion.

There's a motion to approve.

Motion to approve line 10.11.

There's a motion to send line item 10.11 to formal with the recommendation to approve.

Hearing no objections, that action shall be taken.

Line item 10.12 is the sale of Wayne County tax foreclosed occupied properties.

Is there a motion to discuss?

Motion to discuss.

Discussion.

Mr.

Trung.

Uh I'll join.

Uh I should be having uh my colleague uh up there, Cecilia, who's uh the head of the make it home program.

Thank you.

Please introduce yourself for the record.

Yes, Cecilia Ulvera, property tax foreclosure prevention manager in the human homeless uh and family services department.

Thank you for joining us.

Um I believe it was indicated that the property listing would be provided.

We have not received that.

Will you please share that with us?

I'm interested to see those in district four that are on the list.

Yes, uh, through the chair, typically we provide a much typically the the full list of foreclosed properties each year, um, knowing that the final list of make it home properties will not be um decided upon until we get much later into the month.

We still have a lot of uh residents to funnel into the program.

We want to reach as many as possible.

I can certainly uh provide uh your office with uh the historical number of residents who have participated in the program as well as how many we um we have uh once we uh finalize this cohort.

Um it's each program here we have the initial right of first refusal and potentially even the opportunity to uh take and assist more residents in between auctions.

So we don't generally close out the cohort until October.

Okay, thank you for that.

So we do have the original list of um properties that could potentially have gone into foreclosure, and my team in collaboration with the community and neighborhood associations go out and canvas and we share the make it home program with renters that whose property that they reside in are facing foreclosure.

Um I'm interested to see how how many uh people have actually reached out to be a part of the make it home program and to see if uh they can actually make that transition.

So you're saying we wouldn't be able to we wouldn't know that until October?

Um the final we we have the vast bulk of the cohort finalized by the end of July, August, but we do have an additional dozen or less who we um do add to the cohort uh by the the end of the program season.

As of now, I can tell you that um I've analyzed the list, the most recent list sent to us by Wayne County.

Um, and there are about 900 total eligible properties, and we have had 200, I believe 253 of those property of those households reach out regarding the program.

Um, some of those households will, of course, not be eligible for various reasons, whether their houses are um of essential uh pulled from the foreclosure petition, um, or there's an inhabitability issue in that case, we link those residents with um other Detroit housing services programs.

Okay, and are you um can you share the 253 homes?

The addresses um yes, certainly.

I can uh work with the vendor, which is the United Community Housing Coalition to get the the complete list.

Um we do um ensure that each full each household that does come in and expresses interest in the program also receives wraparound services, but I can I can get that to your office, certainly.

Thank you.

The reason I'm asking is I have a resident in particular who we encourage to apply for the program, and now we're getting feedback that there are individuals who acquired the property and they're maybe attempting to evict her, but we don't actually know that someone has purchased the property or whether or not it actually went into foreclosure.

Um so it's a it's a very unique situation.

Um, and I can certainly reach out to you directly to to see if that address is on the list so I can communicate back with her just to be sure that she's aware whether or not you know the the folks that are reaching out to her are legitimate, or if it is someone doing something illegal.

Yes, absolutely, through the chairs.

Um at this point in where we are in the year, there have not been any property sales for the most recently foreclosed properties.

So I would say with a little bit of confidence that this is most likely uh unfortunately that resident being scammed, but we are happy to follow up and confirm that with them as well.

Yeah, and that's what um our office had shared with her, and of course, any time someone approaches someone who's living in a rental property with a threat of eviction, then you know it's is very traumatic for the resident, and I want to do everything I can to provide some assistance to her if that means walking her through this entire process and giving her the the assurances that whomever is knocking on her door is not legitimate and that they are trying to scam her.

Um and you know, at some point in time she may question anyone who approaches her, right?

So I will connect with you offline to get the address to you, and if you can share details about that particular property that we can communicate back to her on, I would appreciate it.

Definitely thank you.

Thank you.

All right.

Um Tim Young.

Thank you.

Uh good to see you guys, everybody.

Good to good to be with you.

I just wanted to ask you have you done an analysis and a comparison of the tax foreclosures by neighborhood without this program?

And have you done a um housing stability analysis with this program?

And have you also done a neighborhood change gentrification index as well?

Through the chair to uh council president Pro Tem, could you please elaborate on what you mean by an analysis?

Well, what I'm talking about analysis, I'm talking about in terms of I'm talking about in terms of gentrification gentrification.

So if they don't qualify for this program, or let's say the program didn't exist, the people that qualified, right?

The program doesn't exist.

These properties go on to foreclosure.

What happens to the neighborhood?

Is it does it do we have a complete gentrification that takes place?

Do we have younger people that move in?

Do we have people who were from the suburbs that come in there?

What happens to the neighborhood with this program?

Have these nickname have these communities been stabilized?

Have these areas been stabilized?

Have we done a comparison uh analysis of what it is with these programs and impact on neighborhood and what happens if we don't have these programs in that same neighborhood?

Or in general.

Through the chair, we definitely could do a more robust analysis of what happens for those residents who do not participate.

As I mentioned, they do receive um anyone who does express interest in the property, we do track those properties closely to ensure to see what the final outcome was, if that property was pulled from foreclosure, if um there it was sold, uh what happened to that resident.

Did they need additional services?

But for those who have not touched the program, we have room to grow there.

For those for on the flip side, however, we also do follow these properties historically and any additional transactions that occur once the resident does graduate from the program and seeing if those properties remain um owner-occupied after the fact.

So that's definitely an area that we can grow in, and the information I do have, I'm happy to share with your office.

That's excellent.

Uh, I also wanted to ask you, then I'll wrap up.

I also got I see you looking at me over there.

Um I also wanted to ask you uh the residential vacancy rate.

Uh, do we know what percentage this program uh improves that?

Uh do we know this this program rehabs versus demolitions?

In terms of how many houses have been rehab because of this, how many houses have been demolished that don't have this program?

And then finally, I just wanted to add um property taxes in terms of delinquency rate.

Uh have have have we had more taxes and stabilization because of this program and without, or is it or is it a negligible effect in terms of the amount of taxes that we are receiving now because these folks have stayed in their house?

Yes, through the chair to um the council member.

Uh the to the answer to your question, it kind of follows in similar trend to my previous answer.

But we do have a lot more information about those who who do participate in the program um regarding and the the longevity of the structure on the parcel.

Um, and so definitely uh I will take this uh your concerns to leadership and see how we can do a better analysis of uh the more uh long lasting effects of the program.

Uh as far as um I'm so sorry, I lost my craft for a second.

Uh as far as uh I'm so sorry, what was the latter part of your question?

No, latter part of my part was uh tax collection.

Are we collecting more property tax collection?

You know, and I'm saying that because that's one of the more um volatile ways in which we collect money.

Most cities, as you know, they could with a three-legged stool, they collect money from their property taxes.

We collect it from our income taxes because our property taxes have been so depressed.

Yeah, I've got to believe that this program is stabilizing these properties and it's adding to the property value of everybody else in that neighborhood and community.

Absolutely.

So some of the residents who do participate in the program, I can get your office more information about this.

They're offered certain funds through the Rocket Community Foundation, who does supply uh a limited amount of repair funds for those um who participate.

Um additionally, as far as taxes go, the participants they are surrounded with wraparound services, which include making sure that the first year they're eligible, they're applying for hope to stabilize that community and uh prevent any future delinquency and subsequent demolitions regard um, you know, following from a vacancy.

Um, one thing that I I can say, and this your comments are very timely, is that our tools and the toolbox to prevent these from happening are dwindling with the lack of pay as you stay, and now the sunsetting of um the Earth payment plans that were previously available at the county.

So that is something that our team is is working on and with uh other stakeholders um and the assessor's office uh and the board of review to to see and make sure residents are surrounded with every uh resource available.

No, I appreciate it.

Finally, I just want to say also a growth versus value housing metric.

So the m the growth housing part is to maximize the appreciation and development versus the value aspect, maximizing the affordability and cash flow.

You know, I think that's something that we could do as well in terms of you know building more houses, having more development, which is the growth aspect, but it kind of doesn't make sense if you're building more houses, you have more development if people can't afford to live there.

And then three to four or five months later, you know, these are empty shells of what they once were because we built these new houses, put them in there, the people can't afford to do that.

So I think it's a growth in terms of new housing or preserving housing, but it's also a value in terms of affordability and cash flow, that community, and also um about reducing um the housing burden, and for people that are listening, that's for people that spend 30% or more of their income on housing.

And so these are things I'll send to you in the future.

But thank you so much for your time.

Excellent work.

We definitely want to keep this going.

I actually went to one of the graduations.

You that that that that that that was that was a whole lot of fun, so I appreciate that.

Uh it was about a serious topic, so thank you for the work that you're doing and uh and preserve the American dream.

And with that, thank you, madam chair.

I am done.

All right, thank you.

I don't have any additional questions.

I agree wholeheartedly.

Uh this is a phenomenal program.

Glad we're able to continue to do this and hope we have the financial support to uh continue the program as well.

Um with that, pro Tim Young.

Is there a motion to send line item 10.12 to formal with a recommendation to approve?

Motion.

Hearing no objections, that action shall be taken.

Thank you all so much.

And Madam Clerk and Pro Tim, we should actually go back to line item 10.1.

We did receive a correction letter.

We did in regards to line item 10.1 as I see it.

The only correction is the name of the department.

Yep.

It's from the housing and revitalization department to the human homelessness and family services.

Um, and so Madam Clerk.

I don't know if we need to go through the process to make another motion to have it be as amended or just note it.

Through the chair, I would defer that to LPD or law.

I I see the the top of Dr.

Powers here.

I see it as well.

There you go.

Yes.

Um, Madam Chair, what the original motion was to send it to formal session, I believe.

Yes, ma'am.

Um, I think that it would be wisest to um reconsider just sending it and send it as amended because technically you sent the previous version, not this version.

That is correct.

That's correct, isn't it?

Yes.

Okay.

So what shall I do, Dr.

Powell?

I you ma'am.

I would I would I would suggest that you um rather than just say make a note that it's as amended um that you get a new motion to send this version to formal session.

So uh just reconsider the previous vote and accept this as amended version and send that to formal session.

It's a little complicated, but it would be more correct.

Thank you.

You're welcome.

With that, pro Tim Young, is there a motion to reconsider line item the vote on line item 10.1.

Motion reconsider.

Hearing no objections, that action shall be taken.

Noting that we were just referring to the correction letter in line item 10.1 again.

There's an amendment from the housing and revitalization department to the human homelessness and family services department.

All else remaining the same.

Is there a motion to send line item 10.1 to formal as amended with a recommendation to approve motion hearing no objections, that action shall be taken.

And madam clerk, we do have a walk-on.

You have received that as well.

The walk-on item is for the planning and development department and request for authorization of a new new utility easement at 7441 Elmhurst.

Is there a motion to walk this item onto the agenda?

Motion.

Hearing no objections, that action shall be taken.

Is there a motion to approve the walk on?

Motion.

Hearing no objections, that action shall be taken.

Is there a motion to suspend member reports?

Motion.

Hearing no objections, that action shall be taken.

And if there is nothing further to come before us, we without objection, we shall stand adjourned.

Good morning, good afternoon, and good night.