GRAND RAPIDS, MI - Zoning incentives and voluntary agreements for developers are among four measures the Grand Rapids city commission passed Tuesday, marking the body's first formal action to address the city's affordable housing crisis.

After more than two years of research and debate, the commission still had some last-minute tweaks to make to two of the measures they approved on Tuesday, Jan. 31.

The four proposals are the first out of a list of 11 "Housing NOW" proposals the commission is planning to vote on in 2018.

They are:

-Adding an option to the fee structure for the payment in lieu of taxes program to funnel money into the city's Affordable Housing Fund. (recommendation #1 of 11)

- Changing the criteria for Neighborhood Enterprise Zones to put more of an emphasis on housing affordability. The zones allow developers to apply for tax incentives when they're building or repairing rental units. (#4 of 11)

- Creating the option for developers to agree to voluntary equitable development agreements with the city to set joint goals and interests when a project is either on city-owned property, costs more than $5 million or is seeking assistance from the city's Affordable Housing Fund. (#5 of 11)

-Creating a new city policy to allow the city to invest in part of a developer's project in order to control the cost of the units. The city can't dictate rents in a private development - but it can control the rent in property it owns. (#7 of 11)

At the end of its 7 p.m. meeting Tuesday after unanimously approving all four measures, the commission made the rare move of backtracking and amending something it had just passed.

Third Ward Commissioner Dave Allen proposed the change to the Neighborhood Enterprise Zone criteria as a result of criticism during public comment.

As initially approved, the criteria stated projects with rents affordable for people who make 80 percent of Area Median Income (AMI) were considered "affordable housing."

However, Grand Rapids resident Jim Howe pointed out to the commission that the 80 percent figure is out of line with what programs like Low Income Housing Tax Credits consider to be "affordable housing." The LIHTC program considers affordable housing to be rents affordable to those who make 60 percent AMI.

"In this particular situation Jim Howe is right," Allen said. "It should not be labeled 'affordable housing,' it is 'housing affordability.'"

On Allen's motion, the commission approved changing the wording of the criteria to from "affordable housing" to "housing affordability."

Earlier in the day Tuesday at their 9:30 a.m. committee of the whole meeting, the commission lowered the threshold from $10 million to $5 million for projects that would qualify for a voluntary equitable development agreement.

The city deems housing to be "affordable" when renters or homeowners are spending no more than 30 percent of their annual incomes on housing.

It uses a federal definition of Area Median Income to define what is affordable for households of different sizes.

Grand Rapids has a goal to create rental housing for people with household incomes at 60 percent or less of the Area Median Income, and to help residents with household incomes at 80 percent AMI attain home ownership.

In Kent County in 2017, a two-person household making a combined $31,680 was considered to be at 60 percent AMI -- and an affordable rent would be $796 per month, according to the Michigan State Housing Development Authority.

At 80 percent AMI in Kent County in 2017, a two-person household would make $42,480 per year and an affordable rent would be $1,062.