KALAMAZOO, MI (WKZO AM/FM) – Kalamazoo city funding is expected to be withdrawn from a project to convert a motel on Kilgore Road into low-cost rental units.
The developer at 1500 E. Kilgore apparently failed to follow the instructions. A city memo claims ANR Housing began construction before a required city inspection and failed to meet several other bid requirements and limitations.
Commissioners will be asked to rescind a $400,000 home investment partnership loan and cancel an approved property tax break for the project.
This development should not be confused with The Landings, the new family shelter being co-funded by the city of Kalamazoo and Kalamazoo County on the other side of Sprinkle Road.
That is a separate project.
Commissioners will also be asked tonight to extend a contract with Kalamazoo Neighborhood Housing Services to give them more time to complete construction on 14 single family homes.
KNHS was given $1-million in federal COVID-19 recovery funding for the project in 2022, but apparently it has taken longer than expected to complete the work. They aren’t asking for any additional funding, just the time to get the job done.
Five of the homes have already been sold, two sales are pending & most of the rest are under construction.
They have until the end of 2026 to get the work done. Any COVID-19 funding not spent by then could be clawed back by Washington, DC.
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