Housing Is a Marathon

Guest Opinion

By Yarrow Brown | Sept. 21, 2024

Housing is a marathon, not a sprint. It took years to get into the current housing crisis, and it will take a lot of time to get back to a healthy balance, but I believe we can do this.

One of the avenues to address housing is zoning reform, allowing more density and opportunities to build in underutilized areas or on smaller lots. But these changes and their impacts take time. While we wait for our region’s 187 units of government to look at the data, review the information, and decide how they can bring the housing opportunities they need to support their communities, we can still make progress ourselves.

We can’t lose sight of how many people are in need of housing who make less than 50 percent of the Area Median Income or AMI. There is a huge need for rental units that are less than $1,000/month and for sale housing that is less than $200,000 to purchase. We need projects that provide many different types of units at different price points.

So how are some communities able to do this? What partnerships are they forming and what projects are happening in each of our counties? Below are just a few projects in the region using the new tools for housing and involving collaboration and innovation that I am excited about and that I hope will inspire action in your community.

The 50-unit Bellaire Lofts missing middle housing project was one of the first Housing Tax Increment Financing (HTIF) projects in the state. This is a new tool for housing adopted in 2023. This project is a partnership with the village, township, and Antrim County to create a Brownfield Plan using HTIF to provide year-round workforce housing. Their commitment means these cannot be short-term rentals and will be provided at specific rental rates for a specific time period.

In this case, their master plan identified the need to invest in housing and to support the township and villages in their efforts to bring more housing. The meeting was standing room only when this was passed at the county. The developers are actively engaged in the community and responded to a community need.

Benzie County was proactive in adopting a Payment in Lieu of Taxes or PILOT policy for their county. This will allow developers to use this tool in 2025. We hope other communities will follow suit.

I am excited that the City of Frankfort created pathways to use two tools including an attainable housing district and residential facilities district, opening up more opportunities for smaller scale investment in housing in their community. The City of Traverse City, Grand Traverse County and other counties also have adopted PILOT ordinances and approved projects using this tool.

In Emmet County, the Maple Block project will provide over 200 units using the HTIF. This partnership with Great Lakes Capital, the City of Petoskey and Emmet County Brownfield Redevelopment Authority is allowing a contaminated site to be cleaned up and bring some of the first workforce housing to Petoskey in over 20 years. We will see rents ranging from $975 for a studio to $1,850 for a two-bedroom unit. For this project, at least 102 units will be held for households with incomes no greater than 120 percent of the AMI, which includes 25 units for 100 percent AMI households.

The Leelanau County Land Bank Authority has provided many opportunities for housing in Leelanau County by partnering with nonprofit developers Homestretch and Habitat for Humanity Grand Traverse Region. In the last three years, at least 28 units have been built or are being built with this partnership.

Recently, a Brownfield Tax Increment housing development was approved for the Ida Tompkins building in Traverse City. I walked this property twice and have been involved in discussion since 2020 about how to create housing in this building. I am excited to have recently met the developers and for their vision to include workforce housing. Not only will this building be preserved, but the HTIF will allow 12 units to be affordable to those making less than 120 percent of the AMI. The developers are committed to historic preservation, and while this won’t bring in as many units as if the building were torn down and rebuilt, it is a win for both housing and the neighborhood.

This project is taking advantage of the changes in state law that make housing development an activity that qualifies for reimbursement, although the old building needs some asbestos and lead paint removed as well. Rents would range from $1,000 per month for a studio apartment, up to $1,575 for a large one-bedroom or two-bedroom unit, which are aimed at tenants earning 60 to 80 percent of the AMI. Tenants earning up to 100 percent of the AMI could still qualify.

All of these projects took incredible time, effort, and collaboration and are not only going to provide much needed housing, but allow our community and economy to grow and prosper.

Yarrow Brown is the executive director of Housing North, a 10-county housing agency serving northwest Michigan.