The Township’s population would have grown by 20-30% under the current proposal with no increase in property tax revenue to cover associated costs for public services. Under Michigan law, these housing units are built on a chassis, rather than a foundation, and are not subject to property taxes.

Property Tax Implications

The Township’s financial analysis estimated that the cost to current Township residents for public services for the proposed mobile home park residents would have exceeded $500,000 annually.

The development proposal called for housing units costing between $250,000 and $350,000 on 149 acres not served by public water or sewer. In addition to loans needed to purchase the mobile homes, also referred to as manufactured homes, residents are responsible for monthly rent and park fees, as well as gas, electricity and internet bills.

Other Considerations

The Township evaluated the type of units proposed and did not consider them to be the type of affordable housing typical of a mobile home park.  This project targeted households with annual incomes 50% higher than Ann Arbor’s median income of $95,000 for 2 people. With the recommended housing cost ratio of 30% of gross income, an annual income of $145,000 would be needed to cover an estimated $2,400 monthly payment for a 20-year loan on a $300,000 unit (with a 5% down payment), estimated monthly park fees of $900, and $300 estimated monthly fees for gas, electricity and internet. Standard mortgages and loans longer than 20 years typically are not available for units located on rented land.

The Township also considered other issues related to the ownership of these housing units.  “It’s difficult, expensive or outright impossible to move these homes and so residents are forced to tolerate escalating rents, arbitrary fees, lack of transparency in billing and failure to invest in the maintenance of park properties, all which contribute to their housing insecurity,” testified University of Colorado Sociology Professor Esther Sullivan at a committee hearing of the Michigan Senate (as reported by Detroit Free Press in March 2024). A package of bills to address these issues was introduced in the Michigan Senate.

“The Township decision to enter into an agreement with the developers was reached after months of analysis and negotiations,” said Township Supervisor Diane O’Connell. “While not easy, it has been one of the most important decisions we have deliberated for the future of our Township.”

The agreement reached between the Township and J A Bloch & Company and Sun Communities includes the Township’s purchase of the acreage for $10 million, and the sellers or their successors disavowing any future interest in the property. No bonds or property tax increase are needed to fund the purchase.

The Township is reviewing future options for the acreage which has natural features such as wetlands and a stream. Options include a possible sale of some of the land to developers for houses on 1-acre lots and preserving existing farmland under the Township’s Farmland and Open Space Preservation program whose agreements are funded by the Township’s preservation millage and federal, state and local grants.