The Habitat Company is withdrawing from their agreement with the city of South Haven to purchase and develop affordable housing on the former location of the Overton factory at 229 Elkenburg Street. The project was initially approved by the city council in 2021, but Habitat vice president Jeff Head tells city officials they do not believe they will be successful in securing the 9% Low Income Housing Tax Credits required for the project. The company says that is after a meeting last month the the Michigan State Housing Development Authority on those prospects. MSHDA also shared concern over the level of local controversy with the project and noted they had received numerous calls raising technical issues with their October 2022 application. Additionally, Head says local support for the project “has eroded” and notes the development is “one of the most visible issues in the upcoming election.” He says if the city has a renewed political consensus for the project after the election, they are open to talking again.
