Community Development

The Community Development Division invests federal, state and local funds in programs and services that benefit neighborhoods, business development, and low-income households to address critical needs in our community. This division works closely with neighborhood associations, nonprofit organizations, foundations, and others community groups to build strong and sustainable neighborhoods. 

Payments in Lieu of Taxes (PILOT)

Michigan Public Act 346 of the Public Acts of 1966, and Section 15a of MCL 125.1415a, created the Michigan State Housing Development Authority (MSHDA), and authorized tax exemptions and Payments in Lieu of Taxes (PILOT) for selected categories of housing projects. Kalamazoo's Code of Ordinances provides for the possibility of a residential housing development within the City to be considered for a PILOT. More information can be found in the pdf PILOT Checklist (93 KB) .


The City of Kalamazoo receives annual funding from the U.S. Department of Housing and Urban Development (HUD) under three programs: the Community Development Block Grant (CDBG) Program, the HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grants (ESG) Program. To receive these funds, the City must have a Consolidated Plan and annual Action Plan approved by HUD. 

The City distributes a portion of the HUD funding to our community partners through a yearly competitive application process that is managed by City staff and the Community Development Act Advisory Committee (CDAAC). The grant cycle generally occurs as follows:

    • November - Mandatory pre-application submission training
    • November - Applications made available
    • December - Applications due
    • December through January - Review by the CDAAC
    • January - Draft recommendations approved by CDAAC
    • February - 30-day comment period on draft recommendations
    • March - CDAAC public hearing
    • April - City Commission public hearing
    • May - Action Plan sent to HUD

Grant eligible neighborhoods

The U.S. Department of Housing and Urban Development allows federal grant monies to be spent in Census tracts where at least 51 percent of the households are low- to moderate-income. HUD defines low- to moderate-income as 80 percent or less of the area medium income. Currently, these Census tracts and there corresponding neighborhoods are:

    • Eastside, Census tract 1.00 - 1301 E Main St, (269) 381-0700
    • Edison, Census tract 9.00 and 10.00 - 816 Washington Ave, (269) 382-0916
    • Fremont/Douglas - Census tract 5.00
    • Northside, Census tract 2.02 and 3.00 - 612 N Park St, (269) 344-5490
    • Vine, Census tract 6.00 - 511 W Vine St, (269) 349-8463

The Kalamazoo City Commission has prioritized utilizing federal resources in these neighborhoods. A pdf map (887 KB)  of the grant-eligible Census tracts can be found pdf here (887 KB) .

Plans and reports

To qualify for funding from the U.S. Department of Housing & Urban Development, the City must have an approved Consolidated Plan and Action Plan. The Consolidated Plan identifies five-year goals for CDBG, HOME, and ESG funding and outlines the City’s strategy to address the housing and community development needs of its low and moderate income families and individuals. Action Plans are prepared each year and detail how HUD funds will be spent each year to achieve the broader goals established in the Consolidated Plan.

At the conclusion of each grant year, the City prepares the Consolidated Annual Performance and Evaluation Report (CAPER). The report details the outcomes achieved during the grant year and how the utilization of the funds was consistent with the Action Plan.

Current and previous year Consolidated Plans, Action Plans, and CAPERs are available here

City of Kalamazoo

Home to the Kalamazoo Promise, three institutions of higher education, two nationally recognized healthcare systems, cutting-edge medical research, world-class brewing and dining, outstanding parks, and an extensive variety of music, art, theatre, and cultural attractions.

 (269) 337-8000
 (269) 337-8182
 241 West South Street
     Kalamazoo, MI 49007

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