Council removes $2 million allotment for Fellowship Chapel housing after city says tax‑credit not yet applied

The Detroit City Council’s budget committee voted during its executive‑session meeting to remove a $2,000,000 allocation from line item 148 that had been set aside as gap funding for the Fellowship Chapel housing project.

The committee heard from Julie Schneider, director of the Housing and Revitalization Department, who said the proposed Fellowship Estates development is a two‑phase project totaling 90 units and that “the most recent application closed on April 1 … and we confirmed with MSHDA today twice that they did not apply for the LIHTC award at this time.” Schneider added that without a LIHTC award the project lacks the usual financing pathway.

Councilmember Angela Whitfield Calloway, who led the conversation, told colleagues the nonprofit behind the project has a funding gap of roughly $1 million to $2 million and urged the city to support it. After Schneider explained the timeline for future low‑income housing tax credit application rounds, Calloway moved to remove the $2,000,000 allotment from the spreadsheet and to place closing‑resolution language that would keep the city engaged while the nonprofit pursues the October application window. The motion carried by voice vote with no objections recorded.

Why it matters: the LIHTC process is the primary financing mechanism for projects of this scale; council action keeps the project eligible for future municipal support but removes an immediate cash allotment pending the developer’s application. The council directed staff to continue discussions with the nonprofit and flagged the October LIHTC application deadline as the next critical milestone.

The committee moved directly to other pinned budget items after the action; the council did not record a roll‑call vote in the transcript on this motion.

The council is scheduled to reconvene for final budget action at its formal session tomorrow.