Ferndale Adopts 
Requirement for Affordable Housing in New Developments
Ferndale, MI – The City of Ferndale adopted an inclusive housing policy Monday night that requires developers building with 25 or more units to reserve 25% of the units for affordable housing. The requirement applies to future projects, not ones currently under construction. It also applies only to those that involve city-owned land or tax incentives.
“The history of Ferndale is the story of working class people putting down roots and being successful. In a time of rapidly rising real estate values, it’s important that people of all 
income levels still have that opportunity. There continues to be great interest in creating new housing in Ferndale, and this policy is our attempt to make sure it reflects that diversity,” said Mayor Dave Coulter.
A memo to council from City Planner Justin Lyons explains the history and details. “Over the past year, City Council requested staff explore an inclusive housing policy to help ensure future housing developments incorporate units that are affordable to a variety of residents and income levels in the City,” Lyons wrote.
“The idea behind inclusive housing is that a typical household should not spend more than 30% of its income on housing (rent or mortgage), because it limits resources for other needs, such as food, clothing, transportation, etc. Planning for future and existing housing was a key portion of the City’s recent Master Plan update and creating a plan for inclusive 
housing was a specific action item in the plan.”
The city held a workshop in May to discuss possibilities for this ordinance and came up with a recommended policy that “For any City -owned or City -acquired land proposed for multiple family housing that would be 25 units or larger, 25 % of the units be set aside for inclusive housing.
The 25% would be made up of the current area median income (AMI $56,142 gross ) at the percentages listed below.
-10% of units equal to or less than 80% AMI ($44,914)
-10% of units equal to or less than 60% AMI ($33,685)
-5% of units equal to or less than 50% AMI ($28,071)
Also included are stipulations to maintain the inclusive housing for 30 years.
“If a housing project fails to perform as agreed -upon, the applicant would be subject to a fee of $500.00 per unit per day for each day that the owner is in noncompliance. The penalty would be deposited in the payment in lieu of inclusive housing fund,” and “The sale of any rental inclusive housing unit that would be converted to an owner-occupied condo minimum unit prior to 30 years would be subject to a $50,000 recapture fee.
AMI and penalties would be adjusted annually based on the Detroit -Warren -Dearborn Metropolitan Statistical Area (MSA) median income in the most recent United States Census.
Mayor Pro Tem Melanie Piana stated “This policy is making sure the people who take care of us can stay in the community they love I personally had a sense of urgency to get the policy because of the new developments being proposed. A community where all income levels can afford to live is an inclusive community.”
Coulter said this is likely the first time a city of Ferndale’s size has adopted an inclusive housing policy in Michigan.
