Two days after economics junior Hanson Pulickal moved to a home on Virginia Avenue in August, he learned that his rental could be leveled next year.
If approved for a $2.3 million loan from the U.S. Department of Housing and Urban Development, the city plans to buy and demolish 24 houses on Virginia Avenue from Snyder Road to Burcham Drive. Condominiums, townhouses and single-family homes would be built in their place on the 600 block.
Negotiations and appraisals of the properties will start once the city finds out if they received the loan, which could be at least six months.
When Pulickal's lease is up next August, he will have to find another housing option for his senior year.
City officials hope the project will revitalize the neighborhood by attracting more homeowners to help stabilize the shrinking enrollment in the school district, said Stephanie Gingerich, an East Lansing community development analyst.
The block was selected because of its location near Marble Elementary School and its low number of permanent residents, Gingerich said. Officials are also planning to help renters and residents with relocation assistance during their displacement.
The revamped block will consist of six townhouses and 12 condominiums, in addition to 21 new, single-family homes. The attached units will start at $100,000 to $200,000 and houses will range between $125,000 to $250,000 to compensate for low to moderate income families.
"The way our city is set up it's easy to rent year to year but it's not easy to settle down," Gingerich said. "It's just really going to anchor a neighborhood that has a mix of renters and owners."
She said that the city is confident the Department of Housing and Urban Development will approve the loan.
About half of the homeowners were receptive to the development and are interested in staying on the street and moving into the new homes, Gingerich said.
"If it proves to be a helpful tool, then we might consider using it again," she said.
Pulickal's roommate, Matthew McDonald, said he understands the intention of providing cost-efficient homes for young families, but thinks that students are being pushed farther away from the city.
"They are trying to get us out of the neighborhood which is kind of sad because it's a big part of Michigan State," the political science senior said. "Why would you want this around your kids?"
Mayor Mark Meadows said he hopes the older neighborhood's declining status will improve by replacing an entire block at once instead of house by house.
The proposal has angered some landlords who are unhappy with how the process is being conducted.
"I don't disagree with the idea … of having affordable, single-family homes," said Hagan Realty agent Matt Hagan. "So far I'm frustrated with the way the city has handled it."
Hagan Realty leases two homes to MSU students on Virginia Avenue.
"Once they get the feather in their cap, is this something they will try elsewhere?" Hagan said. "As a developer and a business owner, it's really hard to compete against something like this."
Some residents including Ken Marable think the proposed development will bring a needed balance to the community.
"It would be nice to have more family homes this close to all the schools, since right now there are so few owner-occupied homes on this block" said Marable, who plans to buy one of the new houses with his wife and three children.
