October 2022 Newsletter

HELP HOUSING NORTH MEET THE MATCH
Housing North is a nonprofit organization working to build awareness, influence policy, and expand capacity to enable communities in its 10-county service region to create housing solutions that meet their unique needs.

In Emmet County, Housing North employs Andrea Jacobs as our full time Housing Ready Program Director. Carlin Smith represents Emmet County and the Little Traverse Bay Housing Partnership on the Housing North Board of Directors and currently serves as Board President.

Housing North has recently received a matching grant opportunity of $10,000 from an anonymous donor As a proponent of housing, we hope you will consider a contribution. Send your donation to Housing North, P.O. Box 1434, Traverse City, MI 49685 and put “Matching Grant Emmet” in the memo line. Or you can donate online at www.housingnorth.org and mention “Matching Grant Emmet” in the notes field.

Let's help make Northwest Michigan a place where families of all income levels can find homes that are safe and affordable. Donate today!

The costs of residential development in Emmet County make it extremely difficult to build new homes that families who live and work here can afford. Local Governments can guide growth to areas that have been identified as priorities for residential development. They also have—or can access—tools that aren’t available to others, and partner with investors, businesses, and nonprofits to help address the need for more affordable housing. Here are examples of what local governments can do.

  • Revise zoning ordinances to allow for greater density and more creative use of space, thus reducing per unit costs. (Note that the cities of Petoskey and Harbor Springs; Pleasantview, West Traverse, Little Traverse, and Resort Townships; and the Villages of Alanson, Pellston, and Mackinaw City all have their own zoning codes. Emmet County ordinances cover the rest of the county.)

    Examples:

    • Creating a Planned Unit Development (PUD) Residential Overlay option: Emmet County, Petoskey, and Harbor Springs

    • Allowing Accessory Dwelling Units (ADUs): Emmet County, Petoskey

    • Permitting duplexes in some residential areas; Emmet County and Harbor Springs

  • Reduce the cost and complexity of the approval process by assigning more projects to administrative rather than Planning Commission review.

    • Examples: Emmet County and Petoskey

  • Help defray the up-front costs of land and utilities. In exchange for guarantees on long-term affordability, communities can reduce water and sewer tap fees, seek grants to expand infrastructure to properties where responsible residential development is targeted, and donate, or sell at a reduced price, land appropriate for residential development.

    • Example: City of Charlevoix: Development Assistance Grant Program

  • Apply Brownfield, TIF, Land Bank, PILOT, Federal Trust Lands or other State or Federal government sponsored programs to provide land, help fund on-site infrastructure, or reduce future property taxes, in exchange for commitments on long-term affordability. (click here for a glossary of housing terms).

    • Examples include

      • Emmet County: Donating property from the Land Bank for the NW Habitat for Humanity’s Luce St. Development in Oden

      • Little Traverse Bay Bands of Odawa Indians: Using Tribal Trust land and access to grants for the Victories Square development

      • Emmet County and the City of Petoskey: Considering the use of Brownfield Authority and TIF funding for Lofts at Lumber Square apartment project in Petoskey

In Emmet County, there were no new zoning changes that took place over the summer. Harbor Springs recently completed a review and update of their Master Plan. The Planning Commission and City Staff have recently begun a review of the Zoning Code to bring it into alignment with the Master Plan. The process is expected to take about two years. The Little Traverse, Readmond, and Resort Townships are beginning the process of updating their own Master Plans.

Local Governments Are Essential Partners in Residential Development

A quarterly update from Emmet County Housing Ready Director Andrea Jacobs

As leaves disappear from branches, we feel an urgency to finish building projects and make physical changes in our community that meet priority needs. Our current housing crisis is one of those priorities, making thinking, discussing, and developing strategies for guiding growth more important than ever. Winter can be a good season for community planning.

I believe it is imperative for our planning commissions and boards to take this time to identify community priorities, share ideas about where and how to build, and think about what role they play in development. As community members, we can contribute ideas to our local officials during this planning season. Sending an email to your local planning commission is a great way to allow your thoughts to be considered by board members without having to be physically present at each meeting. Your message often serves to inspire dialogue about a particular subject that otherwise might not be discussed.

Right now, many local townships are reviewing and rewriting their Master Plans, and others who have completed their Plan are combing through ordinance language to make sure it is consistent. Planning Commissions can take one further step toward proactive community planning by listing Community Benefits and Incentives in their Master Plan. This list is a valuable tool to communicate clearly to potential developers, both residential and commercial, how they can be successful with a project that is contributing to the priority needs of the community. Communities that are actively guiding growth are like investment partners in the future viability of their economies. Be part of the process of building our future!

Housing Ready Director Update

Project Highlight

Northwest Michigan Habitat for Humanity’s Foundation for our Future Campaign
With a growing housing shortage pushing working families and individuals away from Northern Michigan, Northwest Michigan Habitat for Humanity (NMHFH) has recently launched a new housing initiative aimed at increasing their building capacity by almost 400%. By launching the Foundations For Our Future campaign, NMHFH is undertaking the biggest building campaign in their history, aiming to build 43 new homes across Emmet and Charlevoix counties by 2025.

To build these homes, NMHFH has begun utilizing high quality, indoor-built modular homes. The homes are constructed in Bay City, then delivered to a prepared site and completed by Habitat’s construction team and local volunteers. This has allowed NMHFH to build homes twice as fast while still maintaining their energy efficiency and accessibility standards. While this campaign focuses on home builds through 2025, the Habitat Team sees this as an opportunity to permanently increase their building capacity from 1-4 homes per year to 13-14 homes.

  • NMHFH is raising $5 million to fund the construction of these homes, and as of September they are over halfway there! By donating to this campaign, you are investing in the future of our community as your donation will be reinvested multiple times through the building and selling of new homes. To learn more, visit www.northwestmihabitat.org/futurefoundations or call the Habitat Team at 231-348-6926. Keep up-to-date with volunteer opportunities and events by following NMHFH on Facebook.

Policy And Legislative Updates:

Brownfield TIF Legislation – Senate Bills 1152-1155

Legislation to allow tax increment financing (TIF) to support housing development activities was recently introduced in the State Senate. Allowing TIF to support homeownership in addition to rentals and rehabilitation offers communities a significant opportunity to expand affordable housing for full-time residents. The legislation is targeted to households earning less than 120% of the area median income.

LTBHP Glossary of Housing Terms

TAKING ACTION

Andrea Jacobs
andrea@housingnorth.org

State Legislative Activity

Short-term Rentals – Senate Bill 446 & Housing Bill 4722

Lawmakers are currently debating two pieces of legislation that would impose a one-size-fits-all solution for short-term rentals (STR) in all Michigan communities. These bills would allow unlimited STRs in all communities in Michigan regardless of each community's unique housing needs. It would take the decision-making away from each community. With increasing tourism in northern Michigan there is the increase in STRs, reducing the amount of affordable housing stock and creating a situation where many people cannot afford to live where they work. It is essential that each community has the ability to regulate their own STR numbers to balance the needs of long-term residents with those of tourism.

The Little Traverse Bay Housing Partnership has expressed its opposition to these bills through the Northern Housing Alliance and Housing North. We encourage our readers to contact your legislators and express your opinion. We need to be able to control our own future.

Community Land Trust (CRT) Legislation – Senate Bills 1141-1142

These bills seek to strengthen Community Land Trusts that support more affordable housing for lower-income residents without reducing local revenues from property taxes. CLTs are private, nonprofit organizations designed to ensure community stewardship of land. They promote housing affordability and sustainability by retaining the ownership of the land while selling the house to an income-qualified household at a reduced price and leasing the land to the buyer. The land is still taxed because it is leased to a private entity. CLT’s pass these taxes on to the income-limited homeowner.

Local Policy Updates: Zoning and Master Plans

Accessory Dwelling Units (ADU’s):  Sometimes referred to as “additional” dwelling units, ADUs are residential units located on the same property as a single-family dwelling and constructed with the intention of being used by a separate household.  For the relevant Emmet County zoning ordinance, see https://www.emmetcounty.org/wp-content/uploads/2015/11/Accessory-building.pdf 

Community Land Trust (CLT):  CLTs are nonprofit, community-based organizations governed by a local board that are designed to ensure sustainable community stewardship of land as a community investment.  CLTs can be used for many types of development but are primarily used to ensure long-term housing affordability by retaining the ownership of the land while selling the house to an income-qualified household at a reduced price and leasing the land to the buyer. For more information see  https://www.housingnorth.org/community-land-trusts    For a local example see the Harbor Area Residential Trust (HART) at https://www.harborarearesidentialtrust.org   

Federal Tribal Trust Lands:  The US Department of Interior acquires the title to a land and holds it in trust for the benefit of a tribe or tribal members.    LTBB used Tribal Trust Lands for the Victories Square Development.   For a map of Little Traverse Bay Bands of Odawa Indians Trust Lands, see   https://ltbb.maps.arcgis.com/apps/View/index.html?appid=b939b250bbe647b89b4e533c3e34378b   For regulations, see https://www.bia.gov/sites/bia.gov/files/assets/bia/ots/ots/pdf/2017.12.29_Little_Traverse_Bay_Bands_Odawa_Indians_Approved_Bus_Res_Ag_W_S_508.pdf 

Land Bank Authority: A Land Bank Authority is a government authority that traditionally manages distressed, abandoned, or tax foreclosed properties, usually in a county.  More recently, Land Banks have been open to purchasing or receiving donations of other properties in order to develop them.  In Michigan, properties owned by a land bank automatically qualify as brownfield sites for purposes of benefits available from local Brownfield Redevelopment Authorities. Land Bank Authorities are governed by a Board appointed by County Commissions and are managed by the County Treasurer.   For more information, see https://www.emmetcounty.org/community-resources/land-bank-authority-2/ 

Planned Unit Development (PUD): A form of development guided by a comprehensive site plan usually characterized by larger site areas which emphasizes residential use, provides for cluster building, includes dedicated common open space, and promotes an efficient layout of public utilities, all in accordance with a unified architectural theme. For the Emmet County PUD Ordinance, see Article 16 of the Emmet County Zoning Ordinance at https://www.emmetcounty.org/wp-content/uploads/2021/12/PZ_2021-updated-county-zoning-ordinance.pdf 

PILOT (Payment in Lieu of Taxes):  A temporary, partial reduction of future taxes awarded by local governments to applicants that commit to projects that benefit the community but would not occur without the PILOT.  For a local example, see https://www.housingnorth.org/news/new-affordable-rentals-coming-to-traverse-city 

(TIF) Tax Increment Financing: Tax increment Financing is a procedure that allows municipalities to “capture” the additional, or incremental, taxes from property as it increases in value. Property owners continue to pay taxes as usual, but a portion of the money is diverted to pay for development activities that have a public benefit. Allows local governments to invest in public infrastructure or other improvements up-front which are repaid by capturing future anticipated increases in tax revenues generated by the project.  For housing examples, see …….   Other applications allow all tax increase revenues to be allocated for a specific project of community benefit such as downtown development.  Recently proposed legislation would create a “Brownfield TIF” option which would allow for housing projects on  Brownfield properties to be eligible for TIF funding .  For a local downtown development example see the Harbor Springs’ Downtown Development Authority’s TIF plan at https://www.cityofharborsprings.com/wp-content/uploads/2018/10/fs15-1531313898-25603.pdf 

For more comprehensive glossaries of housing terms, see:

Harbor Light Community Partners: 

https://harborlightcp.org/glossary-of-affordable-housing-terms/  

Housing Toolbox.org

https://www.housingtoolbox.org/writable/files/resources/17e.-Affordable-Housing-Glossary2016.pdf 

Nonprofit Housing.org

http://nonprofithousing.org/wp-content/uploads/Media-Packet-Affordable-Housing-Glossary-copy.pdf 

Generation Housing.org

https://generationhousing.org/wp-content/uploads/2020/01/200121-Gen-H-Glossary-of-Housing-Terms.pdf