Across the region, communities are struggling with changes in the economy. One piece of the economic puzzle that many communities are attempting to address right now is the need for more affordable housing. In the Greater Grand Traverse Area, community housing needs were identified in The Housing Needs Assessment and Development Strategy commissioned by HomeStretch - a nonprofit housing developer serving Grand Traverse, Leelanau, Kalkaska, Antrim, and Benzie Counties - in 2003. The study indicated that 14 percent of homeowners in the region were paying more than 35 percent of their income toward housing costs. Twenty-three percent of renters paid more than 35 percent of their income on housing. These percentages indicate a large number of people paying excessive and unaffordable costs for housing. The total projected housing need[1] for owner units for people making 80 percent of county median income or below for the five-county region is 1,265 units. For rentals, the projected figure for those making 80 percent of area median income or below is 2,219 units. A housing study conducted by Northern Homes Community Development Corporation - an affordable housing provider in Antrim, Charlevoix, Emmet, Cheboygan, Otsego, and Crawford counties - revealed similar results for the northern counties of Council of Governments' region.
So, what do these data mean? A scenario from the Housing Needs Assessment offers a glimpse of a typical housing situation: Suppose a family of three - a man, a woman, and their child - would like to purchase a home in Traverse City. The man is an assistant manager at a local restaurant and earns $26,775 annually. The woman works part time as a hair stylist, earning $8.12 an hour. The family earns about $34,535 a year, about 80% of the county's median income according to 2000 Census figures. With this income, they can afford a home priced at $93,000. Only 15 percent of the 183 homes sold in Traverse City in the year the study was completed were in this range. Those homes averaged 939 square feet and most needed considerable repairs or maintenance.
Where land prices are high, even small, modestly built homes can be unaffordable to the average family. Likewise, negative credit issues and the inability of many families to come up with conventional down payments or financing through alternative programs have limited appropriate housing situations.
Local economic development corporations, downtown development associations, and others interested in the well-being of people and our economy recognize that diverse housing options create healthy communities. Many local affordable housing providers are looking at ways to encourage or provide incentives for developers to construct affordable housing. Some nonprofit groups are working in partnership with private developers to "package" affordable housing opportunities. Local units of government are also exploring policies directed at providing incentives to support affordable housing through local zoning and permit processes. The Council of Governments is committed to supporting these public and private partnership initiatives and will continue to provide leadership as a neutral convener and housing resource liaison. Our staff regularly hosts forums, participates in meetings, provides research, prepares reports, and presents balanced information and resources for communities who are working to address the need for affordable housing.
Let These Resources Work For You:
- Housing Needs Assessments
- Community Housing Choices website (www.communityhousingchoices.org) - This web-based resource for northwest Lower Michigan was created in 2005 by the Michigan Land Use Institute with funding from Rotary Camps and Services of Traverse City.
- HomeStretch Non-profit Housing Development Corporation (http://www.homestretchhousing.org/) - HomeStretch builds affordable housing in Antrim, Benzie, Grand Traverse, Kalkaska, and Leelanau Counties.
- Michigan State Housing Development Authority (http://www.michigan.gov/mshda) - MSHDA provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income Michigan residents
[1] "Need" is a function of those now paying excessive amounts (more than 35% of income) toward homeowner or rental costs (and are projected to move within the next five years) plus projected formation of new households.
Below are plans created by Northwest Michigan Council of Governments Regional Planning & Community Development to explore homelessness issues in the region.
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