The Ann Arbor City Council has unanimously approved to sell the Kline’s parking lot for the development of market-priced housing.
The purchase agreement with Hines Acquisitions is for $31,500 per housing unit with the minimum just over $14 million.
For a long time, the intention was to build affordable housing on the site, but Ann Arbor Housing Commission Executive Director Jennifer Hall says that became impractical.
“The world has changed significantly since 2019. Post-COVID construction prices have increased by more than 50%, and the volatility of the finance market and the revolving tariffs make it extremely challenging to finance affordable housing developments.”
Hall says other locations around Ann Arbor would be better options for future affordable housing. The latest proposal is for at least 450 units with about 10,000 square feet of commercial space.
Non-commercial, fact based reporting is made possible by your financial support. Make your donation to WEMU today to keep your community NPR station thriving.
Like 89.1 WEMU on Facebook and follow us on X (Twitter)
Contact WEMU News at 734.487.3363 or email us at studio@wemu.org
