For Rent: Kerrytown apartment, $575

When I've talked to people at Zingerman's about NeNo, they say the city needs its "workforce housing." As an example, several have told me their own employees would like to live closer to the Deli. Yet no one there was interested when I told them that Mrs. Seeley had a newly refurbished 2-bedroom apartment for rent. Her house is one short block from Kerrytown, and two from the Deli.

At $650 a month, two people could have shared that apartment for $325 each--but I was told that their staffers prefer to live alone. Now that option is available, too: Mrs. Seeley rented the 2-bedroom, but she now has a vacant 1-bedroom. The rent is $575 a month, and anyone who's interested can call her at 662-9716.

If you do the math, you'll find that this apartment costs $199 LESS than than the $774 ceiling for NeNo's 1-bedroom "workforce" units. But of course, few entry-level workers would rent a 1-bedroom in the first place. Mrs. Seeley's rents are a bargain, but even she charges an appropriate premium for having your own kitchen and bath.

That's why 1-bedrooms are by far the most expensive type of rental housing. I just did a quick search on arborweb.rentlinx.com, looking at 1- and 2-bedroom apartments currently offered for rent within one mile of the NeNo site. The first ten 1-bedrooms that came up rent for an average of $836. The first ten 2-bedrooms average $1,060, or $530 per person. That's $244 PER MONTH less than NeNo's $774 ceiling.

No wonder people trying to save money typically share apartments and homes. It turns out that some are even doing that again in 3 Oaks' houses on N. Main. Margaret Schankler recently spoke to a tenant who's moved into the gray house. It's a 3-bedroom and the rent is $1,000 a month. With three people sharing it, each is paying $333 a month. That's just a hair less than the $337 a month average we found in our own survey of Main Street rentals in May.

NeNo would provide less workforce housing than already exists on this site, at well over twice the cost. Tell us again--what's the "public benefit" here?

Housing the Homeless

"40 units at Near North will be set aside as supportive housing for persons with special needs"

--developers' website

We've constantly been surprised that so many well-informed people think the NeNo site plan includes forty units of "supportive" housing. In fact, only one-third of the building--fourteen units--would serve people with special needs. The developers have always acknowledged this during the Planning process, and it's documented in the June Planning Staff report.

Thanks to Cindy Pomerleau, we've finally tracked this error to its source--which turns out to be the developers's own website!

As noted previously, the great majority of the units in NeNo will have little or no value to the community. They're supposed to be targeted at working people--but because 3 Oaks wants so much money for the site, they would be more expensive than thousands of existing Ann Arbor apartments.

We hope this web posting is an oversight, not a deliberate attempt to mislead. Many Avalon supporters, including Paul Saginaw of Zingerman's, have argued that the county's Blueprint to End Homelessness justifies blowing away fifty years of planning for our neighborhood. It's past time for Avalon to come clean about just how few homeless people NeNo would house.

Test Your NeNo Knowledge

1) If Avalon Housing has 600 people are on its waiting list, and Near North is built, how many people will be left on its waiting list?

a) 300
b) 560
c) 586

2) The eight homes that will be demolished to build Near North have a total of 26 bedrooms. Before 3 Oaks vacated these houses, what was the rent per bedroom?

a) $337 per month
b) $555 per month
c) $774 per month

3) Near North will have 24 “workforce” apartments targeted at people earning no more than 50% of the area’s median income. How much can the developers charge for these units?

a) $337 per month
b) $555 per month
c) $774 per month

4) How many such "workforce" units does the county Affordable Housing Needs Assessment recommend building in the Downtown and Campus areas?

a) 5
b) 50
c) 500

5) Which of these will NOT be part of Near North?

a) housing for people with substance-abuse issues
b) underground parking for every unit
c) a liquor store


Answers:

1) c: 586. The people on Avalon’s waiting list need “supportive” housing. However, Near North will have just 14 “supportive” units.

2) The developers have never revealed how much they charged when they rented the existing houses. However, comparable houses and apartments on this block rent for an average of $337 per bedroom

3) c: $774 per month, including utilities.

4) a: 5 units. The county's Blueprint to End Homeless seeks to add 500 units of "supportive" housing. However, "workforce" units are a much lower priority. The Needs Assessment calls for building 100 citywide, with just 5 in the Downtown and Campus areas.

5) None of the above. Near North will have housing for people with substance-abuse issues, underground parking for every unit, AND a liquor store in the building!


Comments:

1: Many people who support Near North mistakenly assume that it's a classic Avalon project, made up entirely of supportive housing for formerly homeless people. In fact, the building is THREE TIMES the size needed to accommodate its 14 “supportive” residents.

2: The other 26 units are described as “workforce” housing. That is exactly what the existing homes provided--before the developers moved their tenants out.

3: Because 3 Oaks wants to be paid more than $2 million for the property, the "workforce" units will rent for more than many existing Ann Arbor apartments.

4: The study notes that "the private sector and the market will absorb many of the units needed for lower-income households." With 2,000 new student bedrooms recently opened or under constuction, rents are falling citywide.

5: Sad, but true. Contrary to city policy to limit retail sprawl along major arteries, the Near North site plan includes commercial space. The developers have said repeatedly that they want to move the Summit Party Store into the Near North building.