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EGLE grant will help bring 330 new affordable housing units to downtown Ann Arbor

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding a $1 million Brownfield Redevelopment Grant to a project that will create a 20-story high rise with 330 affordable rental units in Ann Arbor. The city will simultaneously overhaul the bus station next door for improved public transportation access. This redevelopment is the culmination of nearly two decades of planning and the city considers it a cornerstone project for downtown Ann Arbor.

The 0.8-acre site at 350 South 5th Avenue is currently a surface parking lot. It was first developed by 1888 with a church and houses. The property was later home to a furniture upholstery repair shop and YMCA. All buildings were demolished by 2003. Environmental assessments found petroleum compounds and metals in soil. The contamination is believed to have come from fill material brought onto the site following demolition. The EGLE grant will pay for demolition of old building foundations and for transportation and disposal of contaminated soil.

The $209 million brownfield project will help reduce the city’s affordable housing gap, which currently shows the need for 4,075 units. All 330 units will be priced at no more than 80% of the Area Median Income (AMI). Of that, 110 units are reserved for families making up to 30% AMI. The high rise includes 6,500 feet of ground floor retail space that’s expected to create 29 new jobs. The improvements to the neighboring Blake Transportation Center include expanded bus lanes, safer pedestrian crossings, and better bus stop shelters. The project is expected to make the community more walkable and will strengthen the talent hub that is growing in between the University of Michigan’s central and medical campuses.

Additional funding is coming from the Michigan State Housing Development Authority, Michigan Economic Development Corporation, Ann Arbor Housing Commission, city of Ann Arbor, and Washtenaw County. The high rise is scheduled to be ready for tenants to move in by the fall of 2028.

More than half of EGLE’s annual budget supports local projects, protects public health and the environment, and helps create economic growth and jobs for Michigan workers. Redevelopment increases the value of brownfield sites and other nearby properties. In 2025, the EGLE Brownfield program provided more than $23 million in brownfield incentives to 76 projects in 52 Michigan communities. These projects are projected to create more than 440 housing units, 600 jobs, and result in more than $675 million in capital investment.

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