Eastpointe's City Council took the first formal step this week toward building 26 fully ADA-compliant senior cottages on the site of the former Oakwood Elementary School, approving the initial reading of a tax agreement that will shape how the development gets built and funded. The project, known as Oakwood Manor Senior Living Phase 2, pairs affordable housing with on-site medical and social services aimed at helping older adults avoid nursing home care altogether.
The council held its first reading of the ordinance addendum during a regular meeting at Eastpointe City Hall last Tuesday, according to MLive. The measure passed its first reading, setting up a second reading and final vote at a future council meeting once city administration prepares the necessary documents. The arrangement at the center of the vote is a Payment in Lieu of Taxes, or PILOT, agreement — a tool often used to encourage affordable or specialized housing by having a developer make annual payments to the city instead of paying traditional property taxes.
Who's Building It and Why Here
The development comes from Bingham Farms-based MHT Housing, Inc., led by President T. Van Fox, with management handled by affiliate Continental Management, according to background compiled by the Ann Arbor Chronicle. Fox presented the development plans to the council, outlining the timeline and design of Oakwood Manor Phase 2 and emphasizing that the project is tailored specifically to Eastpointe's aging population, per the same MLive report. Council members expressed support for the push toward high-quality, accessible senior housing during the discussion.
The 26 cottages will be built on the site of the former Oakwood Elementary School, part of a broader effort by the city to revitalize vacant properties. That approach lines up with Eastpointe's 2025-2026 Master Plan, which prioritizes residential infill projects and the repurposing of underutilized former municipal and school properties to expand accessible housing stock, according to the city's own planning documents. If the PILOT agreement is approved, construction on the senior cottages is expected to begin in fall 2026.
Medical Care Built Into the Design
What sets Phase 2 apart from a typical senior housing project is its partnership with PACE, the Program of All-Inclusive Care for the Elderly, which will offer medical and social services directly within the community. PACE is a capitated benefit program managed by the Centers for Medicare & Medicaid Services and the Michigan Department of Health and Human Services that provides comprehensive care at no out-of-pocket cost to dual-eligible seniors who qualify for nursing-home-level support. The care model is designed to prevent or delay the need for nursing home placement altogether.
The cottage design itself reflects that same goal: it allows couples to remain together even when one spouse requires a higher level of medical assistance, letting residents receive care while maintaining independence and staying in their own community. That distinction matters in a city where, according to U.S. Census Bureau QuickFacts data, roughly 13.4% of Eastpointe's 34,318 residents are 65 or older, and the median household income sits at $62,325.
Financing Beyond the City's Tax Deal
The PILOT structure itself draws on a decades-old state framework. Under Michigan's State Housing Development Authority Act of 1966, codified at MCL 125.1415a, local governments can grant PILOT tax exemptions to housing projects receiving state or federal financing, substituting standard property taxes with an annual service charge based on shelter rents, per state statute. City council discussion this week focused on the terms of that arrangement and its long-term impact on city revenues and services.
The tax deal isn't the only public money involved. Macomb County's Community Development Block Grant program issued a public notice in April confirming county grant funding to support MHT Housing's Oakwood Cottages project on Nehls Avenue, according to a Macomb County notice. Affordable developments backed by the Michigan State Housing Development Authority typically carry 30- to 50-year deed restrictions that keep units reserved for residents earning at or below 60% of the Area Median Income, ensuring the tax breaks translate into long-term affordability rather than eventual market-rate conversion.
A Waitlist Years Long
The demand for this kind of housing is already visible next door. Oakwood Manor Senior Living Phase 1, the existing 55-and-over complex at 14825 Nehls Avenue, has reportedly built waitlists as long as 2.5 years for available units, according to community housing trackers and local applicant reports from June. Phase 1 offers one- and two-bedroom units, which makes the 26 additional ADA-compliant cottages proposed for Phase 2 a meaningful expansion of local capacity for seniors seeking a place to live.
Eastpointe has moved on affordable and accessible housing before. Kelly Court's ADA-friendly debut last July delivered eight modular units as part of a $1.8 million infill project aimed at increasing local affordable housing options. Oakwood Manor Phase 2 now stands as the city's next major test of that same strategy, with the second reading and final vote still to come before construction can begin.
