NSO, and Olympia Development of Michigan, the Ilitch family's real estate company, had a verbal agreement about the purchase of the Tumaini Center at 3430 Third Street. That deal apparently did not come to fruition.

MHT was not immediately available for comment Thursday afternoon. But a statement from MHT and Olympia Development indicates that Olympia is still involved with the project.

"MHT Housing, Inc. has been working with the Neighbored Services Organization on a plan to purchase their Tumaini location that would then enable NSO to relocate to and develop their new location. MHT Housing, Inc. and Olympia Development have been actively working together since last year on a formal joint venture agreement for future development of the Tumaini site," the statement said. "Discussions will remain private and confidential."

MHT is NSO's development partner for the supportive housing piece of a $20 million shelter and apartment complex planned near the intersection of Mack Avenue, just east of Gratiot, Little said. The site was home to the former Deroit Police 7th Precinct which closed in 2006 and was subsequently demolished.

Little said NSO and MHT plan to break ground in June on the supportive housing component of the project.

"MHT Housing will allow us the time we need to continue to operate the Tunaimi Center while we construct the new shelter site," Little said.

The Detroit News reported that the Ilitch family's Olympia Development earlier this year backed out of the deal to purchase the Tumaini Center on Third Street near Martin Luther King Jr. Boulevard for $1.5 million.

Little would not comment directly on the Ilitch family's decision, and Olympia Development did not immediately comment.

Little declined to share details of the financing already in place for the new 100,000-square-foot facility that NSO will move to. But she confirmed financing for the project will include a mix of federal dollars, tax credits for affordable housing, foundation grants and the proceeds from the sale of the Tumaini Center.

The new facility will include an overnight shelter, 45 supportive housing apartments and on-site services for the homeless.

"Instead of a drop-in center, we're providing more continuum-based services for the homeless population," said Little, who succeeded NSO's longtime CEO Sheilah Clay in October.

"We're really expanding our service delivery to the homeless population with this move."

The move aligns with NSO's longheld goal of moving the social service agency's homeless services into a larger, more modern facility close to major bus lines.

Beyond its services for the homeless, NSO also provides services for people with development disabilities and mental illness.

It operates four sites in Wayne County, serving 15,000 people each year. Through a state contract, it also provides screening of Oakland County seniors with mental illness and co-occuring conditions to ensure nursing homes are the best place for them.

It's operating on a budget of $20 million this year, Little said.