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Once a luxury hotel, Detroit’s Lee Plaza sat vacant for nearly 30 years before its conversion from an eyesore to a building with affordable apartments for older residents.
The renovation began last year. Lifelong neighborhood resident Craig Davis Sr. says he’s happy to see the Art Deco landmark poised for a new and needed purpose.
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“I’m all for it,” says Davis, a retired carpenter. The city needs more housing for older adults, he notes — and not everyone has been able to retire with a huge nest egg.
Lee Plaza is one of several creative efforts underway to address an affordable housing crisis facing older Michiganders. In addition to local projects, proposed state legislation could encourage more accessory dwelling units — known as ADUs — and additional homestead property tax relief.
“I’m very optimistic that we’ll see some real impactful changes in the coming weeks and months,” says Jason Lachowski, who is the AARP Michigan associate state director of government affairs.
The demand for affordable housing for older adults far exceeds the supply in most Michigan communities, according to a 2025 housing report by the State Advisory Council on Aging.
Many older Michiganders live on fixed incomes, and as everyday costs rise, housing takes up a larger share of their budgets, says Katie Bach, a spokeswoman for the Michigan State Housing Development Authority.
“At the same time, our senior population is growing quickly, which means demand for affordable, accessible housing will only increase,” she adds.
Between 2005 and 2025, the number of Michigan residents over 65 grew by 800,000 — about 64 percent, according to the Michigan Center for Data and Analytics, a state agency. While the growth will slow in coming years, it still will add more older Michiganders to the state’s population.
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The first phase of the Lee Plaza redevelopment, scheduled to wrap up later this year, will add 117 apartments for income-eligible people 55 and older. Market rents will start at $450 a month and no rent will exceed 30 percent of a resident’s income.
Launching the job wasn’t easy, says Ryan Hertz, president and CEO of Lighthouse, Lee Plaza’s nonprofit co-developer.
It required complex private and public partnerships and a variety of funding sources.
“It was a miracle ... that we were able to get everything to align, to close on financing and make this project real,” Hertz says.
Other Michigan communities are looking to boost the stock of affordable housing with new construction, zoning code reforms and downpayment assistance programs.
Last year, Lansing voted to allow ADUs in certain areas of the city. ADUs are separate residences on an existing family lot; they’re commonly known as granny flats or mother-in-law apartments. AARP Michigan worked with a grassroots citizen effort and local leaders to develop the plan.
Older people especially can benefit from ADUs as either a smaller, cheaper place to live or as a rental option for additional income, Lachowski says.
A bipartisan bill introduced in the state Legislature in February and supported by AARP seeks to encourage ADU adoption by passing statewide ADU rules on size, setbacks, location and design. As of now, more than 20 communities have adopted their own guidelines and restrictions.
In Jackson, the city has partnered with a private developer to build new affordable homes on vacant city-owned lots. Jackson, in southern Michigan, will contribute up to $50,000 downpayments on 100 homes using federal and state funds.
Income-eligible participants choose their location and layout — a ranch or two-story — and buy the house and property for $178,000, minus the downpayment and any other assistance.
Older people are prime candidates, especially those who want to downsize into a more efficient home with less upkeep, says Shane LaPorte, Jackson’s director of community development. Applicants don’t need to be first-time homeowners to qualify.
“This is a once-in-a-lifetime opportunity for an aging population to get a brand-new home built for them, in which they can age in place comfortably at an affordable price,” he says.
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