Editor's note: This story is part of Southwest Michigan Second Wave's On the Ground Battle Creek series.
 
BATTLE CREEK, MI — Developers and supporters of an affordable housing development to be located in the Post-Franklin neighborhood have received a $1.65 million glimmer of hope in the form of Low-Income Housing Tax Credits (LIHTC) from the state.

The development, dubbed Northern Pines, is Permanent Supportive Housing (PSH) that will include 55 one-bedroom apartment units in a four-story building that will be available to low-income individuals within Calhoun County, says Lee Talmage, Executive Director of the Battle Creek Housing Commission (BCHC).

BCHC is a co-developer of the project with UPholdings. Headquartered in Chicago, UPholdings is a “leading developer and comprehensive real estate firm dedicated to creating, operating, and sustaining high-quality affordable housing nationwide. We are known for our innovative, solutions-oriented approach, prioritizing long-term sustainability and tenant-focused strategies,” says information on its website.

Discussions about a PSH in Battle Creek began a little over five years ago. Since then, BCHC, UPholdings, and leadership with the City of Battle Creek have submitted requests for LIHTC funds.

“To be honest, getting that LIHTC funding was a little bit of a surprise,” Talmage says. “We’ve been working on this for a long time.”

Sarah Ritten, Project Manager with UPholdingsSecuring these tax credits is “huge,” says Sarah Ritten, Project Manager with UPholdings. Depending on several factors, she says construction could begin at the end of 2026 or early in 2027.

“It’s a big step forward. It means the state is taking it seriously,” she says of Northern Pines. “We’ve been trying for quite some time to get these tax credits, which are the biggest piece of the financing for this project.”

With the tax credits secured, the focus now turns to finding additional partners and funding for an estimated $12 million to cover construction costs. Another $17 million will cover the cost of things like architecture and engineering fees, a required pool of reserve funds, and the establishment of on-site services for residents such as medical and dental care; mental health, alcohol and substance abuse counseling; and job training and employment assistance.

Residents are not required to use these services as a condition of their tenancy.
The current reality, Ritten says, is that construction costs are up and financing is down.

The city has earmarked Community Development Block Grant dollars for the project, says Tony Dearing, Interim Battle Creek City Manager. The development will be built on a two-acre parcel of land owned by the city, the Calhoun County Land Bank Authority, and BCHC near the corner of East Michigan Avenue and Elm Street that was purchased for about $50,000.

“The Battle Creek Community Foundation (BCCF) worked in conjunction with Battle Creek Housing Commission to support the land purchase for Northern Pines Apartments,” says a statement from BCCF. “ Being involved with this project aligns with BCCF’s focus on creating livable communities, including safe, stable, and affordable housing. BCCF, along with private donor partners, provided Battle Creek Housing Commission the funds needed for the land acquisition.

“We own the land, so we’ve got the land and will be selling that to Upholdings at a very affordable rate,” Dearing says. “That’s the extent of our commitment at this point.”

Additionally, BCHC will be providing housing subsidies to Northern Pines. Talmage says this is a critical component to UPholdings' ability to make the project work financially.

BCHC recently took proactive steps by completing a Rental Assistance Demonstration Conversion, which allows Public Housing Authorities (PHAs) like themselves to convert public housing properties to long-term, project-based Section 8 rental assistance, according to the HUD (U.S. Department of Housing and Urban Development).

Talmage says this conversion doesn’t change BCHC’s mission to serve anyone in need of housing who meets specific requirements.

“Going to Section 8 allows us to play in the same sandbox as the private sector,” he says. “In public housing, you’re always subject to the whims of Congress and HUD. They don’t tend to do that to private and public developers where the funding is guaranteed.”

“We saw it as a more secure means of funding our projects,” Talmage says. “We made the right decision at the right time. We’ve put ourselves into a better position going forward. A blend of public and private investors is something HUD has encouraged us to do for many, many years. Funding for this development is coming out of funding we’re already receiving. The LITEC grant is for construction of the new facility.”

Northern Pines is UPholdings' first PSH development in Michigan. The company owns and operates similar developments in Indiana, California, Illinois, and Ohio.

“For our Midwest projects, a 55-unit development is the sweet spot so that it’s not overwhelming for staffing and our service providers,” Ritten says. “We’ve done 100-plus units, but 55 units are more of our bread and butter. Upholdings is a full-service developer. We get the financing and build and service the development.”

The company’s current portfolio includes more than 400-plus units of affordable, mixed-income, and permanent supportive housing in the pre-development, development, and construction pipeline and more than 2,400 operational units, Ritten says. 

During COVID, UPholdings opened an office in Fresno, CA. At that time, Ritten says there was a lot of money, including ARPA (American Rescue Plan Act) funds.

“We were taking roadside motels in California that no one was using and turning that into Permanent Supportive Housing. It’s really taken off in the last five years,” she says. “Unfortunately, just based on where we’re at right now and uncertainty about where federal funding stands, tax credits are getting extremely competitive.”

It's a start

Dearing says Northern Pines won’t alleviate all of the concerns around the growing number of homeless individuals in Battle Creek, but it will help to serve a specific constituency.

“We just know instinctively, based on the homeless population and how many units are available, that we are well below the threshold where we need to be,” he says. “The homeless population has been growing in recent years.”

Ted Dearing, Battle Creek Assistant City ManagerThe need is there, Dearing says, for a variety of housing types in every geographic space and at every price point.

“There is a demonstrated need. We have folks who are close to or experiencing homelessness who need this support,” he says of the UPholdings' model. “It’s critical to get this type of housing. The demand is high and the supply is low.”

Northern Pines, like UPholdings' other developments, will have wraparound and support services, some of which will be provided by Summit Pointe, Ritten says.

“These are the types of supports that individuals and families need so they can move into a home; otherwise, they’re on the street bouncing around to different shelters and missions. Northern Pines is an important piece of this puzzle," Talmage says.

During a 2022 presentation to a Battle Creek contingent that had traveled to Gary, IN., to tour an UPholdings' development there, Ryan Wilson, then Development Manager with the company, dispelled some commonly-held misconceptions some have about Permanent Supportive Housing. Dearing and Talmage were part of that contingent.

“Permanent supportive housing is not a homeless shelter, not a treatment facility, not a rehab, or halfway house. Nor is it public housing or rent-free,” said Wilson, who is no longer with UPholdings. “It is indeed permanent, full-time leaseholders, and they sign Good Neighbor agreements. There’s no time limit on residency, with the only exception to qualifying being if someone earns too much money.”

People need and deserve these PSH opportunities, Dearing says.

“This is giving people who may be on the edge or needing help the opportunity to get back on their feet,” he says. “We’re creating a stable foundation for people who are willing and able to do the work to get back on solid footing.”