RELEASE: Allen Edwin Homes Breaks Ground on 'Workforce' Housing in Hillsdale

HILLSDALE, Mich.—City officials and Portage-based developer Allen Edwin Homes broke ground Monday on a project to bring affordable housing to middle-income families in Hillsdale.

The first phase of the workforce housing development will see three two-story, townhouse-style duplex condominiums built at 440 & 450 Hidden Meadows Drive, to house six families. Each duplex will contain two roughly 1,600-square foot units with four bedrooms, two bathrooms, and an attached garage. The rental units are expected to be move-in ready by early 2025.

The developer has proposed for the second phase a mix of “for sale” and rental single-family homes on the remaining acreage in the Three Meadows Subdivision they currently have under exclusive option.

“Hillsdale is experiencing a surge of energy as investment in the community continues to grow,” Brian Farkas, director of workforce housing for Allen Edwin Homes, said. “Allen Edwin Homes is thrilled to be part of this momentum by bringing more housing to Hillsdale.”

Allen Edwin’s project in Hillsdale marks the first time the city has taken advantage of new legislation, adopted in 2022, which allows developers of workforce housing projects to enter “payment in lieu of taxes” — or PILOT — agreements with cities. Previously, the incentive only applied to developments qualifying for low-income housing tax credits, which typically involve large apartment complexes. By contrast, this new tool can be applied to smaller apartment developments and single-family homes.

Hillsdale City Council approved the new form of incentive on Nov. 20, 2023, which allows Allen Edwin to afford to build the workforce housing. The agreement with the city requires Allen Edwin to keep rents affordable to families earning up to 120% of the median household income for 15 years.

“We are excited to be working with Allen Edwin Homes to bring additional housing options to Hillsdale,” Hillsdale Mayor Adam Stockford said. “Housing is a need, not only in Hillsdale but across the entire state. This project builds on the recent growth we’ve been seeing as investors realize the opportunity our community has to offer.”

A state housing report published in 2022 found approximately 47% of the state’s housing units are more than 50 years old and that Michigan needs 190,000 more units to meet current housing needs. The report also found, as of 2019, about 26% of Michigan residents were considered “housing-cost burdened” because they spent more than 30 percent of their income on housing.

“Preserving our aging housing stock and developing new units are both critically important to tackle our housing shortage and grow our local economy,” Hillsdale City Manager David Mackie said. “These new homes will help address the need for affordable housing for working class families, young professionals, or retiring residents who are looking to downsize. This project is a significant step forward.”

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