Novi affordable housing tax deal stalls; 267-unit Grand River project not on council's agenda

A developer's request for a tax break to build 267 affordable apartments on Grand River Avenue in Novi has stalled, with no council action at its last hearing and no sign of it on Monday's agenda.

Lincoln Avenue Communities asked the Novi City Council on Sept. 28 for conditional approval of a payment in lieu of taxes, or PILOT, and a municipal services agreement for the project at 45500 Grand River, the former DiMaria site at Taft Road. As an alternative, it asked for a Michigan State Housing Development Authority tax increment financing arrangement.

No council member made a motion, and no vote was taken, according to the meeting minutes, which were on the council's Oct. 12 consent agenda. The project was not on the Oct. 12 agenda.

What the developer asked for

Under a PILOT, a housing development pays the city a set share of its rents instead of regular property taxes.

The project would have 267 units, all limited to households earning up to 80% of the area median income, with a weighted average of no more than 60%, according to the minutes.

The developer cut its proposed term from 40 years to 30. It offered to pay up to 3% of shelter rents for the first 15 years and up to 10% for the next 15. The developer projected about $12.7 million in payments over 30 years, compared with about $2 million to $2.2 million under the site's current use.

The financing plan also includes federal low-income housing tax credits, an $8 million MSHDA loan and about $3 million from Oakland County, according to the minutes. The developer said it faced a $5 million gap without the PILOT.

At an Aug. 10 meeting, a developer representative told the council the project "is dependent on receipt of a PILOT or TIF," and is not feasible without one, according to those minutes. The developer said it needed to document the project's tax treatment in an October application to MSHDA for gap financing, or wait a year.

Where the council stands

According to the Sept. 28 minutes:

• Mayor Fischer said he could not support any motion as presented. He criticized late materials and questioned the developer's math. In August, he said he would not support either a TIF or a PILOT with the numbers presented.
• Members Martinez and Smith said they weren't ready to give conditional approval. Martinez said he supports affordable housing but wants a PILOT ordinance and metrics first, calling the sequence "cart before the horse."
• Member Staudt objected to the two-building design with surface parking and suggested waiting for MSHDA guidance, expected in 60 to 90 days.
• Member Heintz said he strongly supports affordable housing and asked for design alternatives showing tax impacts.
• Member Gurumurthy said she had "more questions than answers."
• Mayor Pro Tem Casey asked for materials earlier and said she is open to new approaches.

City Manager Cardenas said the state Treasury has indicated corridor improvement authorities can't capture MSHDA PILOT revenue. City Attorney Schultz said Novi's ordinance has no process for this kind of early review. He estimated it would take "a few months" to draft a PILOT ordinance, and said no action was required without a motion.

Two speakers supported the project during public comment, including Kityana Alexander of Abundant Housing Michigan.

It is not known whether Lincoln Avenue Communities submitted its MSHDA application this month.

This story uses Novi City Council minutes from Aug. 10 and Sept. 28, 2026, and the council's Oct. 12, 2026, agenda.