Benton Harbor City Commissioners are preparing to take some action to help clear the way for major renovation projects coming up at the Buss Avenue Apartments and the Harbor Towers high rise.
The city Legislative Committee this week discussed the transfer of the Buss property to the Benton Harbor Housing Commission for the sum of $1, a step that will be necessary for the project to proceed.
Mayor Marcus Muhammad tells us this will enable the housing commission to work through HUD’s Rental Assistance Demonstration program to fix up Buss after commissioners previously approved a similar property transfer for Harbor Towers.
“The first project will be Harbor Towers, which we know has suffered from a plethora of problems from the heating system, plumbing, old inundated equipment, elevator issues, smoke detector problems, and many, many more,” Muhammad said. “The Benton Harbor Housing Commission has entered into an agreement with the Housing and Urban Development Program. They can partner with a private developer under the RAD program. What this does is it gives the Benton Harbor Housing Commission, through that partnership, tens of millions of dollars to renovate both Harbor Towers and bus apartments, which will give residents an entirely new and better quality of life by having better housing.”
Under the RAD program, the housing commission can partner with a private developer for the project while the developer receives tax credits. Muhammad says HUD’s looking at a $52 million investment in the community.
“As the mayor of the city of Benton Harbor, I’m absolutely ecstatic. This is something that I have wanted to see and have been working toward since I’ve been in office since 2010.”
Muhammad says the Harbor Towers project received momentum after he led Congressman Bill Huizenga on a tour of the facility in 2024.
“When he walked in, I could immediately see on his face that he was greatly disturbed. He assured me that he would go back to Washington, D.C. and he would do everything he could to help the residents in Harbor Towers.”
Muhammad says this is a case of “promises made, promises kept.”
The city Legislative Committee was told this week that the housing commission currently only owns the Buss Avenue apartment buildings, but not the property on which they sit. To qualify for RAD, the commission must own both before finalizing its plans with HUD for work on the two housing developments. Muhammad says the full city commission will consider that property transfer at its next meeting.
“We will approve a PILOT resolution and then the resolution to transfer the property so they can move forward with the work. The second part of that is two things. The city receives revenue, which we know is much needed. And then the big thing is the residents will see the improvements on the facilities.”
Under the arrangement, the city will receive $50,000 per year in lieu of taxes while the RAD credits are in effect, although City Manager Alex Little noted to the Legislative Committee this week that housing commissions typically don’t pay any taxes.
Muhammad says these are major renovations coming up.
“I believe it’s about $93,000 per unit, which would totally give it a complete facelift. It’s characterized or categorized as a level one renovation.”
Muhammad says work on Harbor Towers could start later this year. The Buss work would come later.
