Detroit — Ch. 22 Art. III Inclusionary Housing Requirements (preempted-pending-review) § 22-3-2
Definitions
Operative Text
For purposes of this article, the following words and phrases shall have the meaning respectively ascribed to them by this section: Affordable housing means, as generally defined by the U.S. Department of Housing and Urban Development, housing for which the occupants are paying no more than 30 percent of their income for gross housing costs, including utilities. Area Median Income means the median family income for the Detroit-Warren-Livonia Metropolitan Statistical Area, as published by the U.S. Bureau of Census and the U.S. Department of Housing and Urban Development. ARPA means the federal American Rescue Plan of 2021, being Public Law 117-2, as amended. CARES Act means the federal Coronavirus Aid, Relief, and Economic Security Act, being Public Law 116-136, as amended. Certificate of Acceptance means the certificate issued where a Building, Mechanical, Plumbing or Electrical permit has been pulled, work has been completed, and the Buildings, Safety Engineering and Environmental Department has inspected and confirmed the repairs or improvements are in compliance with current codes. Certificate of Occupancy and Compliance means the certificate issued by the Buildings, Safety Engineering and Environmental Department required by Chapter 8, Article II, of this Code, Building Code, where a building or structure, or part thereof, and the use of the land covered by such certificate, conforms in all respects with the provisions of Chapter 50 of this Code, Zoning. Consumer Price Index means the U.S. Department of Labor Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Detroit Metropolitan Area, or some other comparable index stated in the administrative procedures promulgated by the Director of the Housing and Revitalization Department in accordance with Section 22-3-9 of this Code. Developer means the legal or beneficial owner or the representative thereof, of a parcel of land proposed for inclusion in a development, including the holder of an option or contract to purchase who performs the functions necessary to obtain land control and financing to construct or rehabilitate a property and expects to assume the risks and rewards upon completion of the project but does not mean a governmental entity or a commercial lending institution other than a commercial lending institution affiliated with the developer. Development means the division of a parcel of land into two or more parcels, or the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any residential building. Dwelling means a building, or portion of a building, designed for or occupied in whole or in part as the home, residence, or sleeping place of one or more individuals, continuously, permanently, temporarily or transiently, but does not mean a hotel, motel, bed and breakfast, hostel, or other lodging. Dwelling unit means a building, or portion of a building, offered or to be offered for rent or lease, designed for use for residential occupancy by a single household and that includes exclusive sleeping, cooking, eating, and sanitation facilities. Eligibility criteria means, with respect to rental housing, at the time of the rental, or any subsequent lease renewals or extensions, 20 percent of the dwelling units are required to be affordable to households earning up to 80 percent of the Area Median Income. Fund means the Detroit Affordable Housing Development and Preservation Fund established under Section 22-3-7 of this Code. Occupied housing project means a residential housing project in which at least one dwelling unit is occupied by a tenant as the tenant's primary residence in exchange for rental income. Qualifying transaction means any of the following: (1) Type 1 -- The sale or transfer of City-owned real property at less than true cash value which is intended to be developed for a residential housing project; (2) Type 2 -- Direct monetary support from the City of at least $500,000.00, adjusted annually based on changes in the Consumer Price Index, for a residential housing project; (3) Type 3 -- Award of Community Development Block Grant funds of the U.S. Department of Housing and Urban Development controlled by the City of at least $500,000.00, adjusted annually based on changes in the Consumer Price Index, for a residential housing project; (4) Type 4 -- Award of HOME Investment Partnership Program funds of the U.S. Department of Housing and Urban Development controlled by the City of at least $500,000.00, adjusted annually based on changes in the Consumer Price Index, for a residential housing project; (5) Type 5 -- Award of funds of at least $500,000.00 for a residential housing project through an as yet unidentified State of Michigan or federal housing development program; or (6) Type 6 -- Issuance of a Tax Abatement Certificate for any residential housing project that abates all or a portion of ad valorem property taxes. Rehabilitation means repairs or improvements to a residential structure. Residential housing project means one or more buildings that collectively contain at least 20 dwelling units offered for lease or rent on one or more tax parcels or lots marketed as a single or unified project or sharing common elements, including, but not limited to, dwelling units for lease or rent within a mixed use development or in a planned development district as set forth in Chapter 50 of this Code, Zoning, which are offered for rent or lease. Special developer means a developer of a residential housing project in the City of Detroit, which includes funding provided under the ARPA and/or CARES Act. Substitute structure means a separate structure, or separate structures, that meet the criteria contained in Section 22-3-4 (d)(3) of this Code. Tax abatement means the abatement of ad valorem taxes under the Michigan Neighborhood Enterprise Zone Act, being MCL 207.771 et seq. ; the Michigan Obsolete Property Rehabilitation Act, being MCL 125.2781 et seq. ; or the Michigan Commercial Rehabilitation Act, being MCL 207.841 et seq. Tax Abatement Certificate means a certificate for a tax abatement issued by the City or approved by the City Council that has the effect of reducing all or a portion of ad valorem property taxes for property within a City Council approved tax abatement district or zone.
Detroit — Ch. 22 Art. III Inclusionary Housing Requirements (preempted-pending-review) § 22-3-2 establishes the official definitions that govern the entire inclusionary housing article. Key terms such as 'affordable housing,' 'Area Median Income,' 'qualifying transaction,' and 'residential housing project' are given precise meanings that determine when and how the article's requirements apply. For example, a 'qualifying transaction' includes six distinct types of city support—ranging from below-market land sales to tax abatement certificates—each of which can trigger inclusionary obligations. These definitions set the interpretive foundation for all other provisions in the article.
Plain English — not legal advice.
Property owners and developers operating under Detroit — Ch. 22 Art. III Inclusionary Housing Requirements (preempted-pending-review) § 22-3-2 should familiarize themselves with each defined term, since the definitions determine whether a project qualifies as a 'residential housing project,' whether a transaction is a 'qualifying transaction,' and whether affordability requirements attach. Compliant operators typically review whether their financing or land acquisition involves any of the six qualifying transaction types—such as direct city monetary support of $500,000 or more or the issuance of a Tax Abatement Certificate—before proceeding with development plans. Understanding the 'eligibility criteria' definition, which ties affordability to 80 percent of Area Median Income for at least 20 percent of units, is also central to structuring a compliant rental project.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Detroit — Ch. 22 Art. III Inclusionary Housing Requirements (preempted-pending-review) § 22-3-2 defines 'affordable housing' as housing where occupants pay no more than 30 percent of their income for gross housing costs, including utilities, and sets the 'eligibility criteria' requiring that 20 percent of units in covered rental projects be affordable to households earning up to 80 percent of Area Median Income. Tenants living in or seeking housing in projects that received qualifying city support may have rights tied to these definitions, including protections at lease renewal or extension. Those who believe a covered project is not meeting its affordability obligations can explore options such as contacting the Detroit Housing and Revitalization Department or reaching out to a local tenant-rights organization for guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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