News
June 26, 2026

Michigan Brownfield Grant Supports 330-Unit Affordable Housing Development in Ann Arbor

Construction Owners Editorial Team

Highlights

  • Michigan awarded a $1 million brownfield redevelopment grant for a 330-unit affordable housing project in downtown Ann Arbor.
  • The $209 million development will replace a surface parking lot with a 20-story residential tower.
  • The project includes upgrades to the adjacent Blake Transportation Center.
  • Environmental remediation work will address contaminated soil and remaining foundation materials.
  • Tenant occupancy is expected to begin in fall 2028.

Public agencies and developers continue using brownfield redevelopment funding to support affordable housing construction and transit-oriented development in urban markets with limited housing supply.

The Michigan Department of Environment, Great Lakes, and Energy approved a $1 million Brownfield Redevelopment Grant for a downtown Ann Arbor project planned at 350 South 5th Avenue.

Affordable Housing and Transit Improvements

The redevelopment will transform a 0.8-acre surface parking lot into a 20-story mixed-use residential tower containing 330 affordable rental units.

Project plans call for all units to be priced at no more than 80% of the area median income, with 110 units designated for households earning up to 30% of area median income.

The development also includes approximately 6,500 square feet of ground-floor retail space expected to support new commercial activity and job creation.

Adjacent transportation infrastructure improvements at the Blake Transportation Center will include expanded bus lanes, upgraded bus shelters and enhanced pedestrian crossings.

Project stakeholders stated the redevelopment is intended to strengthen connectivity between downtown Ann Arbor and nearby University of Michigan campuses.

Construction completion and tenant occupancy are scheduled for fall 2028.

Environmental Remediation Scope

The project site previously contained multiple structures, including residential buildings, a church, a furniture upholstery operation and a YMCA facility before demolition activities were completed by 2003.

Environmental assessments identified petroleum-related compounds and metals within site soils, with contamination linked to fill materials brought onto the property after earlier demolition work.

Grant funding will support demolition of remaining foundation elements and transportation and disposal of contaminated soil materials.

Brownfield redevelopment projects often require coordinated environmental remediation, site preparation and infrastructure upgrades before vertical construction activities can begin.

Public Funding and Urban Redevelopment Activity

Additional project funding is being provided through the Michigan State Housing Development Authority, Michigan Economic Development Corporation, Ann Arbor Housing Commission, the city of Ann Arbor and Washtenaw County.

State and local governments across the Midwest continue using brownfield incentive programs to advance affordable housing and mixed-use redevelopment on underutilized urban sites.

What This Means For Construction Owners

For construction owners, developers and contractors, projects combining environmental remediation, transit improvements and high-density residential construction typically require extensive coordination among public agencies, environmental consultants and vertical construction teams.

Source: Michigan Govt.

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