Dearborn Earmarks Low-Income Housing Funds for Artspace Project

The city of Dearborn will dedicate a portion of U.S. Department of Housing and Urban Development funds to assist the Minneapolis-based nonprofit Artspace with the conversion of city hall into artist lofts.

The Dearborn City Council voted 4-1 on Tuesday to approve the request of the city's Economic and Community Development Department to give Artspace $250,000 from a $437,145 low-income housing grant administered by Wayne County. The remainder of the money, roughly $187,645, will help first-time homebuyers with their purchases and low-income residents rehabilitate their houses.

Council President Tom Tafelski was the lone dissenting vote. Councilman Mark Shooshanian and President Pro Tem Suzanne Sareini were absent.

"The reason why I voted against using the money for Artspace is because I believe that money could be better served in our neighborhoods," Tafelski said. "We need to protect our families who are already struggling to rehabilitate their homes."

Typical projects eligible for low-income funds include homebuyer assistance (financing the acquisition, rehabilitation or construction of housing for homebuyers); homeowner rehabilitation (assist existing owner-occupants with the repair, rehabilitation or reconstruction of their homes); rental housing; or tenant-based rental assistance (financial assistance for rent or security deposits). 

Mayor John B. O'Reilly, Jr. said Artspace qualified for the money because it plans to renovate the wings of city hall into 46 units of affordable apartments for tenants whose income falls below 60 percent of the county’s mean average.

That project and the subsequent sale of city hall hinges on Artspace receiving a low income housing tax credit through the Michigan State Housing Development Authority, however. The nonprofit submitted its application on Aug. 15 and will learn by November if it will receive the credit in this cycle. If not, it can apply again in 2014.

O’Reilly said giving Artspace the $250,000 is one of several things the city is doing to help the nonprofit score points with MSHDA.

"We're trying to show the state that we're being transformative," O'Reilly said.

In July, the council approved allowing the city to sell city hall, 13615 Michigan Ave., to Artspace for $1.65 million. If Artspace's application to MSHDA is approved, the sale will move forward and city offices will move to the former ADP building, located at 16901 Michigan Ave. The city purchased the building for $3.2 million in 2012 with the goal of it becoming the Dearborn Administrative Center.

Tafelski, a vocal advocate against the sale of city hall, said the council jumped the gun by earmarking the $250,000 for Artspace.

"We don't even know if Artspace's application with MSHDA will be approved or if the project will move forward yet," he said.

Artspace officials were unavailable for comment Thursday morning.