Questions and Answers

What is the status of this project?

Thanks to some very generous donors, we have acquired our first home in the Harbor Springs area. It has been placed into the community land trust and is being renovated. It will shortly be offered for sale to the first buyer.

Is this low-income housing?

No. Our objective is helping year-round people buy homes in the Harbor Springs area. Everybody has their own definition of low income or high income though. See the target income ranges on the “For Buyers” tab on this site. For instance, a family of 4 could have an annual income between $60,000 - $140,000 to participate. You can decide if those levels are “low-income”.

Is this subsidized housing?

No. That usually refers to government funded rent assistance. But HART donors do provide the funding that can be used to reduce the price of a home for a buyer. That price reduction could be called a “subsidy” in the same way that the Humane Society subsidizes pet adoptions, the Lyric Theatre subsidizes entertainment, or the Chamber Foundation subsidizes July 4th fireworks. Harbor Springs has a deep tradition of private philanthropy for the benefit of the community, and this idea fits right in.

Is this workforce housing?

Yes, if your definition of this term is housing for people who work in our community. No, if your definition is rental units for seasonal workers.

Is this affordable housing?

Maybe, but what is “affordable” for one potential buyer may be out of reach for another. This approach is one way to address “Missing Middle” housing needs.

This is not affordable enough for a lot of people who need housing.

Agreed. This is a solution for the subset of people who are ready to make the move to home ownership and have incomes that can support it. This is just one of the housing solutions that the area needs.

 How many homes do you want to bring into the community land trust here?

This is a project of modest scope but huge potential impact for local people who become home buyers. This effort would be extremely successful if we can buy or build 5 homes in the next 5 years. That would help an average of 15 local families over 20 years based on national averages.

 Where will the homes be located?

They could be anywhere in Cross Village Twp., Readmond Twp., Friendship Twp., Pleasantview Twp., Little Traverse Twp., West Traverse Twp. or the City of Harbor Springs. It will depend on donations of homes, land, and money.

I heard the need is actually higher for new apartments in our area. Why aren’t you working on that instead of home buying?

We saw an opportunity to make a faster impact by focusing on helping with the homebuying process. We liked that the community land trust model doesn’t require any approvals, permits, zoning changes, etc. We decided to focus on local people who are ready for home ownership and making a long-term commitment to the Harbor Springs area.

What kinds of people would be buyers for one of these homes?

It could be a single person, a young couple just starting out, or any size family of any age. Regardless, the buyer(s) needs an income which allows them to qualify for a mortgage like any other homebuyer. Following is a list of some occupations and the average annual salary for each in Emmet County. (Source = indeed.com)

Medical Assistant                                  $ 32,000

Emergency Medical Technician              $ 35,000

Administrative Assistant                         $ 37,000

Artist                                                    $ 41,000

Insurance Administrator                       $ 41,200

Carpenter                                              $ 44,800

Police Officer                                         $ 47,600

Electrician                                              $ 50,500

Plumber                                                 $ 52,000

Manufacturing Supervisor                       $ 59,000

Sales Executive                                     $ 60,000

Non-Profit Accountant                             $ 61,800

Medical Technician                                  $ 63,000

Teacher                                                 $ 67,000

Is this an effort by governments to bring low-income housing into their areas?

No, this is just a handful of area people and community organizations who want to make a small but meaningful start in addressing our housing challenges.

This sounds perfect for my daughter and her husband. They want to stay in the area and have been looking for a house for more than 2 years. Are you accepting applications or reservations to buy one of these homes?

People who have an interest in buying a home can contact Northern Homes Community Development Corp. at (231) 582-6244. We are building a list of interested possible buyers.

The idea of a homeowner leasing the land on which their home sits is disturbing. They probably won’t take care of their yard since they don’t own the land.

We have a great deal of experience with “ground leases” in our area since that is the approach used by resort associations like Bayview and some others. Community Land Trust homeowners (and resort association owners) have the same pride in their home and yard as anybody else.

Will this hurt property values in Harbor Springs?

We can’t predict the future but have 4 thoughts on that question.

1.) Our group didn’t find evidence of diminished property values in the resort communities we researched. Instead, home values in those places have increased consistently over the 20+ years that community land trusts have been operating there.

2.) There are an estimated 6,700+ “housing units” in the greater Harbor Springs area (our target area) Our goal is to buy or build 1 home per year. It seems unlikely that such a small number could have any affect – positive or negative.

3.) Economic factors have the most impact on housing prices. These include demographics, the supply of new and existing homes, mortgage rates, employment, consumer sentiment, as well as the tax and regulatory climate.

4.) People in our group said that they would generally prefer to have a year-round family living next door than say, a short-term rental house with weekly turnover.

If someone can’t afford to buy a house in Harbor Springs then they shouldn’t live here.

OK, but let’s say a new teacher buys the house next door. It seems like she is going to be a good neighbor. Getting to know each other, she mentions that her family helped by providing the down payment and some renovation expenses for this house. Would you think less of her and want her to move away because she doesn’t deserve to live here?

The fact that home buyers agree to a resale price formula doesn’t sound right to me. Shouldn’t they make as much money as anyone else on rising home values?

Understood, but that resale formula is the mechanism which preserves the “affordability” of the home for subsequent buyers and helps the community land trust fund additional projects. That formula has been proven to help buyers get into their first home, build equity, and move up when the time is right. Buyers decide up front whether help getting into their first home makes sense in light of future selling price restrictions.

You should do this in Alanson, Conway or Pellston instead of Harbor Springs. Real estate is cheaper and year-round people can live there.

Those areas have severe housing challenges too. But a vibrant community like ours needs residents of all ages and life stages.

There are new housing developments happening through Habitat for Humanity in Alanson and through the Community Foundation in Petoskey. So – problem solved. We don’t have to do anything in the Harbor Springs area.

Those projects are very welcome but just scratch the surface of the housing shortage in our area. We do need action here too (see above answer).

Is this like a commune, kibbutz, or some other socialist thing?

No – just the opposite. This is a market-based solution. First, there is no government involvement. Second, this is all about helping people buy their own private homes. Third, it benefits home buyers as well as the businesses where they work.

Does this idea take funding away from schools or reduce revenue for townships, city or Emmet County?

No. Owners pay full property taxes. There is no loss of revenue for any taxing entity.

 What is the timing for this project?

We have the capacity to buy and renovate at least 1 home per year in the greater Harbor Springs area. All we need is the funding to make it happen.

Is this really going to work? Will it make a difference?

Yes! It is an approach that is growing in Michigan and throughout the country. It would be a small but meaningful first step for the Harbor Springs area in addressing our housing gap.