Housing Summit brings updates, solution as region reaches capacity

Advocates and policy makers were reminded just how off-balance the region is when it comes to housing capacity this week.

They gathered for this year's Northwest Michigan Housing Summit to discuss progress being made and potential solutions to the crisis.

The summit was organized by advocacy nonprofit Housing North and continues a nearly decade-long tradition of convening officials.

The event at Park Place Hotel & Conference Center saw over 200 participants. It included presentations from local and state government officials, nonprofits, developers, business owners and more.

"Housing can be really complex and often daunting and divisive," said Yarrow Brown, director of Housing North. "To have this many people here that care about housing and solutions, coming here to learn and collaborate has been really awesome."

REHASHING DATA

In July, Housing North released a nearly 600 page report called the Northwest Michigan Housing Needs Assessment. Extensive research revealed the growing region of Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, and Wexford counties needs around 31,000 new units to keep up with demand.

Patrick Bowen, the founder and president of the firm that conducted the research, dove into specific data points during his presentation

All but one county (Missaukee) is expected to experience household growth between 2022 and 2027, with Grand Traverse County representing nearly three-quarters of region’s growth.

Most of those people moving to the region will be older millennials and seniors.

The highest demand for for-sale homes in the region comes from households earning between 81 and 120 percent of the area median income. But all 10 counties have for-sale housing availability rates at 1.1 percent or lower, most have rates of 0.5 percent or lower.

The situation is similar for rental units. According to the report, out of 130 apartment complexes surveyed representing over 7,000 individual units, only 51 units were vacant. That's a 99.3 percent occupancy level — well above the typical range of 94 to 96 percent.

Bowen said there are a number of hurdles ahead to add more units including the overstock of seasonal housing.

According to census data, 48,000 homes in the region are noted as seasonal or recreational housing out of around 185,000 total homes in the region.

Said differently, about one-fourth of all housing stock in the region is being used for seasonal housing.

In Benzie County alone, 40 percent of all homes are seasonal. That's the highest percentage out of any individual county included in the study.

“It is ultra relevant. In a time when you don't have very much rental or for sale available. If you had better vacancy rates, this would not be an issue," Bowen said. "But in a time when you have very, very limited availability, [seasonal housing] is adding to your challenges.”

Bowen also spoke on how the lack of options is having a negative impact on employers from multiple fields.

ENDING HOMELESSNESS

The only solution to homelessness is more housing. That was one of the key messages in a presentation from the Northwest Michigan Coalition to End Homelessness.

Executive Director Ashley Halladay-Schmandt said the group remains committed to ending homelessness in Traverse City by 2028. But there's still work to do before the needed 75 supportive housing units are developed.

“Supportive housing is not just we take someone off the street, placing an apartment, say good luck, have a nice life and walk away," Halladay-Schmandt said. "Supportive Housing is walking alongside the person every step of the way. We provide in home case management for them so they never experience homelessness again.”

She said there are about 90 people sleeping outside within the city limits and that almost all of them had previous residencies in the area.

Earlier this month the Record-Eagle chronicled the life of a family who lived in the Pines, a tent community near Grand Traverse Commons. The family found housing in the Goodwill Inn, which has 11 suites for families and is the only shelter in Traverse City that takes in families.

Halladay-Schmandt said her group is in the early stages of developing a yearround homeless shelter within the city.

She said Safe Harbor, an 83-bed seasonal homeless shelter, is at the table in those discussions but no concrete plans have been set.

She said she hopes the "exploratory committee" will have a solution by the time Safe Harbor closes for the season in April.

"What that could look like is opening Safe Harbor year round," Halladay-Schmandt said "Right now, we don't have enough beds year round to meet the current need. When Safe Harbor's open in the winter, we do have enough beds to meet the need. But we need that year round."

Anew development will dedicate a portion of its apartments to those experiencing chronic homelessness in northwestern lower Michigan.

The developers of “Annika Place II” will set aside 19 of the proposed 52 units in the building for those considered most vulnerable. In exchange, Traverse City will grant them a tax break.

The Northwestern Coalition to End Homelessness andGoodwill Northern Michigan, will also provide support like rental assistance.

BROWNFIELD EXCITEMENT

Earlier this summer, Gov. Gretchen Whitmer signed Public Act 90 of 2023, an amendment to theBrownfield Redevelopment Financing Act making housing an eligible activity for brownfield funding.

Brownfield sites are typically land that was used for industrial purposes, such as abandoned factories or closed-down businesses.

Under the new law, a property no longer has to be considered blighted, contaminated, functionally obsolete, historically designated or owned by a land bank to qualify as a brownfield. Meaning, new opportunities for grant funding have opened up to incentivize developers to turn brownfields into housing projects.

Many officials and advocates were excited to explore the new tools at the summit.

Nikki Devitt was one of them. She's the president of the Petoskey Regional Chamber of Commerce and serves as vice chair of the Northern Michigan Chamber Alliance. She said the new laws "open up a whole new world."

What could be one of the largest housing projects in the region is planned for the brownfield site of the Michigan Maple Block Company in Petoskey. The site was chosen to eventually become an apartment complex with approximately 200 units.

Devitt said the project just recently received brownfield redevelopment funding from the Michigan Department of Environment, Great Lakes, and Energy (EGLE).

"There's still a few more gaps. And still a few more things that need to happen. But you know, the momentum is rolling faster than it's ever been. Because of that type of financing," she said.

LOOKING AHEAD

Representatives from many small municipalities were in attendance. Yarrow Brown said while urban areas like Traverse City and Petoskey prove to be "housing ready," more education and infrastructure is needed in the smaller, rural areas.

Ryan Fiebing, 33, sits on the Elberta Village Council in Benzie County. He moved back to northern Michigan after leaving the area after studying architecture in Chicago.

With more than 40 percent of housing in Benzie County being used seasonally he said he's paying attention to population loss.

"It would be great if Elberta could have at least the population that it once had. I think it had upwards of 800, now it's half that," he said. "It would be great if Elberta could have the population to support things like a grocery store. I think those are great goals."

He said he wanted to move back to Traverse City but the type of housing he needed for a young professional wasn't there.

Fiebing said he's lucky he found a community in Elberta and hopes to bring housing solutions so new residents don't have the same experience.