3 days ago
If housing project loses federal funds, Kalamazoo County could step in
KALAMAZOO, Mich. (WOOD) — A long-planned housing project for people in addiction recovery could be at risk after federal budget cuts. Kalamazoo County commissioners may allocate $2 million to help fill the gap.
Since 2018, developers have been working to address a critical housing need in Kalamazoo. Edison Community Partners has been working with Kalamazoo County agencies, city leaders and others to bring Kalamazoo Recovery Housing, or , to reality. The development looks to support people recovering from opioid and methamphetamine addiction through counseling, treatment, training programs and more on the 6.6-acre campus, according to the developer's website.
The project hit a significant block with the loss of federal funding. EPA Greenhouse Gas Reduction Funds from the Biden-era Inflation Reduction Act backed part of the project. An signed by President Donald Trump during his first day in office cut the funding stream for the program. That cancelled the cash flow to projects like Kalrecovery.
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On Tuesday, the Kalamazoo County Board of Commissioners reviewed the possibility of allocating $2 million of opioid settlement money into the project.
'To make that $4 million hole they need at least $2 million immediately, or they are going to lose out on (Low-Income Housing Tax Credit) money. The whole project would pretty much crumble,' said the board's Vice Chair John Taylor.
He said while he approves of the move, there is some hesitancy of increasing the county's share in a developer's project.
'That being said if we don't act on this, the city of Kalamazoo put in money on this, the state put in money on this, everybody, a large number of funders have come together to try and make this project whole,' he said.
According to the meeting documents, Edison Community Partners have $12.1 million in Low-Income Housing Tax Credits from the state. $1.2 millon was provided by the City of Kalamazoo through American Rescue Plan Act funds and $876,000 is provided by the county's Homes for All millage. To maintain the LIHTC, developers will need a new funding commitment before an August deadline.
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Board Chair Jen Strebs said the project fits the requirements to benefit from the settlement fund. She added that the goals of the project are aligned with what the money is meant for.
'The question about a development really should be about what does it accomplish and how affordable is it? This was one of the few developments that we looked at across our portfolios that prioritized much more deeply affordable units and also addressed the issues related to substance use. So, for me it's a heck yes,' said Strebs.
The county is projected to have $4.78 million in the opioid settlement fund. Strebs said that amount is expected to grow under future settlement agreements.
News 8 attempted to contact Edison Community Partners by phone and email but has yet to hear back. A final vote on the allocation is expected to take place at a later commission meeting.
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