Warren City Council approves ordinance for workforce housing project

WARREN — The Warren City Council recently voted to move forward with a project that will create two new rental homes and an ordinance that will allow for more in the future.

At its Oct. 28 meeting, council members heard the second reading of an ordinance that will allow for a payment in lieu of taxes program aimed at generating affordable workforce housing. They also approved a project that will create two rental properties under the ordinance.

The proposed resolution authorizes a 15-year PILOT program on two parcels, located at 11076 and 11082 Maxwell Avenue. It would replace traditional property taxes, including a 4% annual service charge. Currently, the city is receiving nothing in property taxes, as the properties are tax-reverted vacant parcels being held by the city.

The project will create two brand-new rental homes.

City Council Secretary Mindy Moore was supportive of the project, stating many people would prefer to rent rather than own a home.

“I was told by many people across the country that there are a great many people that don’t want to buy a home. They want to be in a rental home,” Moore said. “And for this being an absolute brand-new home … I think that’s very exciting for somebody that’s renting a home to walk into a brand-new home.”

However, Councilwoman Melody Magee said she thinks the south end would be better suited with more properties available to own.

“It may not be everywhere, but in south Warren, most of the people tell me they’re looking to own a home. I don’t want a bunch of rentals in that area in which they cannot purchase,” she said.

Not only is it state law that the homes be rentals, but the program is aimed at addressing the “missing middle,” according to the City Council’s attorney Jeff Schroder.

“It’s individuals who make too much money to qualify for subsidized housing incentives, but they don’t make enough money to get affordable housing, so they’re stuck in the middle,” he said.

While both the ordinance and the project were approved, the city is doing it on a test run with the first two houses, Schroder said. It is a good way to assess the program and determine if the city wants to move forward with more without causing a lot of liability, he said.

“The city’s doing a test run of this to see how these houses are, how the project looks, how it works, so that the city can make an assessment of whether it wants to continue and do more,” he said.