January 2023 Newsletter
Northern Homes Breaks Ground on Two New Homes
Northern Homes Community Development Corporation broke ground last month on two homes near downtown Petoskey that will be affordable for local workforce families. The project is possible through funding from Charlevoix State Bank and the Federal Home Loan Bank of Indianapolis.
Each home will be sold to households earning less than 80% of the area median income, which is around $63,000 per year for a family of four. The homes will remain permanently affordable to future homeowners through the Northern Homes Community Land Trust (CLT) program.
Each home has three bedrooms and two baths, and their designs will serve as models for future projects in the region. One home is located at 53 Bridge Street and the other at 54 Fulton Street, Petoskey.
Northern Homes Community Development Corporation is a 501(c)(3) nonprofit whose mission is to create and preserve quality affordable housing in northern Michigan. For more information, contact Executive Director Jane MacKenzie, at jane@northernhomes.org.
Scott’s decision to step back from his active leadership role of the Partnership provides an opportunity to reflect on what the LTBHP has accomplished in its first five years. As Scott often notes, the success of the Partnership is a community effort. Other LTBHP charter members (who began by meeting in a bowling alley) include Rachel Smolinski, then Director of Harbor, Inc., Tom Adams, Mary Catherine Hannah, Sarah Ford, and Carlin Smith, supported by a small administrative grant from the Petoskey Harbor Springs Community Foundation.
From the beginning, the group was guided by a clear goal: to increase the number of affordable housing units for full time residents in Emmet County. The goal was backed up by a practical and integrated four-part Action Plan. At his last LTBHP meeting as Chair, Scott listed what has been accomplished in each of these four areas so far, with a caution that there is much work yet to do.
Increase community support for expanding housing availability, options, and affordability: Thanks to presentations and publicity generated by LTBHP, many community groups, foundations, local governments, and planning commissions now actively support new affordable residential project proposals in the region and have made the housing crisis a central theme in their updated Master Plans.
Work toward local and state policy changes that encourage affordable housing development: Prodded by LTBHP members, Emmet County and several local governments have also adopted zoning ordinance changes that make higher-density residential development possible. The State of Michigan enacted its own set of affordable housing policy proposals in 2022.
Develop effective local funding solutions to support affordable housing development: The Petoskey-Harbor Springs Area Community Foundation established the Emmet Housing Solutions Fund in 2021 which was used to purchase a site in Petoskey for a 60-unit residential development. Three other projects in Emmet County (Lofts at Lumber Square, Victories Square, Habitat for Humanity) have been awarded major funding from State-administered programs. Other projects are using or planning Community Land Trusts to guarantee long-term affordability.
Identify and provide technical support to implement affordable housing projects. Housing North joined with LTBHP to raise funds from Petoskey, Harbor Springs, Resort Township, regional foundations, and individual donors to hire Andrea Jacobs as Emmet County’s first full-time Housing Ready Program Director in 2022. Andrea helps property owners, developers, local governments, construction, and supply companies identify project opportunities and find what’s needed for them to succeed.
CURRENT HOUSING PROJECTS IN EMMET COUNTY
SCOTT SMITH AND LTBHP’S FIRST FIVE YEARS
Defining Housing Needs
What are our housing needs, really? We all know that the past few years have changed our area’s demographic, economic, and real estate landscape: our residents are getting older; we are more dependent on a seasonal resort economy; and the housing industry is facing rising land and construction costs. The pressure we felt in the region on our residential inventory reflected in the Emmet County Target Market Analysis in 2019 has only increased.
One way for us to understand exactly how things have changed is by looking at the numbers. Housing North has commissioned Bowen National Research to prepare an updated Housing Needs Assessment for the entire region, including a breakdown by county, which will be published this Spring. Such ongoing analysis is imperative for responsible community development and design.
Numbers are important but so are stories. Another way for us to understand what our community needs is to ask people. Ask friends and family, local business owners, students, even retirees about their experiences finding homes or looking for homes that meet their needs. Some people might be surprised at how many different stories all come to the same conclusion: there are simply not enough choices. A lack of inventory across all types of homes at all price points has put pressure on nearly every resident. And for those of us who might be well housed for now, what would our options be if disaster struck? It can be uncomfortable to think about, but if something changed -- change in household size, house destroyed by fire, job/income loss -- would we be able to find a place to stay or could we realistically afford to? As an evolving community, we need to be looking beyond one type of house. We need to be thinking about the people inside, and what home means to all of us.
HOUSING READY DIRECTOR UPDATE
HOUSING NORTH RECEIVES MATCHING GRANT FROM CONSUMERS ENERGY FOUNDATION
Housing North raised the matching funds required for a $100,000 Consumers Energy Foundation grant to support its Rental Preservation Project. The $200,000 will be used to keep two housing units in Leelanau County permanently restricted as long-term rentals.
The project will be implemented by Peninsula Housing, a Community Land Trust, to guarantee the properties remain affordable for Northern Michigan’s workforce. Housing North aims to use the project as a model that could be replicated throughout their ten-county service area.
Founded in 2018, Housing North is a nonprofit organization that works to build awareness, influence policy, and grow capacity and resources for housing solutions in Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, and Wexford counties. More information is available at www.housingnorth.org.
PROJECT UPDATES
LOCAL POLICY UPDATES IN PLANNING & ZONING FOR EMMET COUNTY
BREAKING GROUND
Andrea Jacobs
andrea@housingnorth.org
*Phase:
Predevelopment:
In the site plan and construction approval process.
Funding:
Identifying (usually multiple) funding sources.
Building:
Construction is underway
Contact Andrea Jacobs at andrea@housingnorth.org for more information about a particular project. The table will be updated regularly on the LTBHP website at www.ltbhp.org.
Emmet County is starting the new year with plenty of activity in planning and zoning.
The Emmet County Planning Commission has authorized public hearings to consider several zoning ordinance amendments proposed by the Planning & Zoning Department. The changes related to housing would:
Increase allowable density when water or sewer are available for a housing development.
Reduce minimum lot size in residential zoning districts when water or sewer is available on a site.
Allow dwellings in all zoning districts, except Industrial districts.
Allow 3-family and 4-family dwellings in residential zoning districts.
Modify definitions to align with state and federal terminology.
Public hearings will begin at 7 p.m., February 9, 2023, at the Emmet County Building, 200 Division Street, Petoskey.
The Planning Commission will also consider a proposed mixed-use development in Maple River Township which includes a campground and workforce housing.
The Emmet County Board of Commissioners has approved a rezoning of a 7- acre property zoned R-1 One & Two Family Residential to R-2 General Residential, which allows multiple family units in Bear Creek Township.
Read more to learn more about the importance of zoning reforms.
A quarterly update from Emmet County Housing Ready Director Andrea Jacobs
Scott Smith, charter member and retiring chair of the Little Traverse Bay Housing Partnership (LTBHP), was recently honored with Housing North’s 2022 Housing Leadership Award at its Annual Housing Summit in Traverse City. Scott was lauded for his tireless efforts in raising community awareness of the housing needs in our region. “Every successful initiative needs a champion, and Scott Smith has been Emmet County’s Housing Champion” said Tony Lentych, Executive Director of the Traverse City Housing Commission who presented the awards. “Under Scott’s leadership, the partnership found its footing and started to have an impact in Emmet County. He has been an advocate for housing by attending meetings of planning commissions, township boards, and village and city councils. He’s been and organizer of events to engage members of the community in the housing effort, and an educator of many about the housing crisis.”
Scott Smith accepting the 2022 Housing Leadership Award
SEASONAL POPULATION STUDY PROVIDES INSIGHT
Understanding the seasonal patterns of a resort community like ours is critical for finding realistic solutions to the need for more full-time residential housing. Seasonal homes add pressure on capacity and costs, and together with residences used as short-term rentals (STRs), can remove housing from the supply available to full-time residents. Seasonal population increases also create demand for more employees in local businesses and professional services, who in turn need a place to live. A new study published by Networks Northwest in October 2022 updates seasonal population data for northwest Michigan, including those using short-term rentals.
The year-round population of Emmet County is approximately 34,000. Adding part-time residents and overnight visitors, however, more than doubles our population during the resort season, reaching a high of more than 89,500 in July and August. Residents in seasonal homes vary monthly between almost 1,700 to more than 13,500, while overnight visitors using STRs range from just under 1,900 in April to more than 5,000 in July and August. Similarly, the County’s seasonal workforce increases 15% in the summer, reaching almost 2,800 in July. Building more full-time residential capacity in face of these fluctuations creates unique and challenging demands. A copy of the report can be found here.
CONGRATULATIONS TO HABITAT FOR HUMANITY
The Northwest Michigan Habitat for Humanity was recently recognized with the prestigious Chairman’s Award at the 2022 Celebration of Champions event hosted by the Petoskey Chamber of Commerce. The award was presented as the grand finale of the ceremony held at the Great Lakes Center for the Arts last month in front of a crowd of more than 300 people.
The award recognizes significant, long-term contributions to the community. Habitat’s 18 home-building projects currently underway, plus its Foundations For Our Future Campaign aimed at raising $5 million dollars to build 43 more homes by 2025, are examples of why the organization is so deserving. No one is doing more at that scale to impact the housing shortage crisis than Northwest Michigan Habitat for Humanity.
Earlier in the year, Northwest Michigan Habitat for Humanity was also recognized as Affiliate of the Year in Michigan by the statewide Habitat organization. For more information about NWMichigan Habitat for Humanity, go to https://www.northwestmihabitat.org.
LOCAL PROJECTS EARN “MISSING MIDDLE” STATE AND FEDERAL SUPPORT
Governor Gretchen Whitmer announced last month that two projects in Emmet County will be awarded more than $1.6 million out of a statewide distribution of $8.4 million in grants to help create more affordable housing units for middle-income families in Michigan.
The grants come from the Missing Middle Program which is administered by the Michigan State Housing Development Authority (MSHDA) using federal dollars from the American Rescue Plan Act (ARPA) of 2021. The first round of funds was targeted at non-profit organizations working to develop affordable housing in both the rental and sales markets.
Northwest Michigan Habitat for Humanity will receive a $1,020,000 grant to support their Meadowlands Subdivision project in the Alanson area. Currently Habitat has 18 houses completed or under construction with a goal of 43 new homes by 2025. Habitat’s Foundations For Our Future capital campaign is working to raise $5 million to complete the project.
The other grant recipient in Emmet County is the Petoskey-Harbor Springs Area Community Foundation. They will be receiving $585,000 for the Lofts at Lumber Square Project at 900 Emmet Street in Petoskey. The property is known locally as the former Hanky Lumber or the Gruler Property. The Community Foundation now owns the parcel and is working with Haan Development of Harbor Springs on plans to build a 60-unit apartment complex.
“They say luck is the intersection of preparation and opportunity,” said Carlin Smith of the Little Traverse Bay Housing Partnership and President of the Board for Housing North. “These funds are coming to Emmet County because we’ve been working for several years as a community on developing new housing, and we had projects that fit the Missing Middle criteria that were ready to go,” he said.
GOVERNOR SIGNS NEW LAWS TO EXPAND HOUSING OPPORTUNITIES
Governor Gretchen Whitmer signed a package of bills last month designed to boost attainable housing development across Michigan. The bills will give housing agencies, developers and communities new tools to expand housing opportunities for residents throughout the state.
The package of bills caps more than two years of work by the partners of the Housing Michigan Coalition which included several organizations around the state including Housing North and the Northern Michigan Chamber Alliance. “It’s been a total team effort to get these bills over the finish line and to the Governor’s desk,” said Housing North’s Executive Director Yarrow Brown. She praised the bipartisan support of the package in Lansing, noting that former Senator Wayne Schmidt of Traverse City was one of the bill’s sponsors.
The four bills designed to address barriers to workforce housing development include:
Establishing Attainable Housing Districts that will offer tax incentives for housing developments targeting income-eligible households, including dormant properties previously used as commercial and industrial sites.
Creating residential facility exemptions offering specific tax exemptions for income-eligible housing projects.
Expanding PILOT, or Payment in Lieu of Taxes, pacts with local governments for projects dedicated to long-term workforce housing.
Expansion of the state’s Neighborhood Enterprise Zone legislation offering financial incentives for the creation of workforce housing.
Brown says work is underway on ways to help implement the new laws. Housing North is planning a set of webinars in early 2023 to explain the PILOT and Neighborhood Enterprise Zones legislation. She also notes that the Michigan State Housing Development Authority (MSHDA) is reviewing their programs and procedures to see how to utilize the legislation and to educate communities about implementation.
