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Partnerships work to tackle housing shortage in Michigan

Kelley Kuhn

LANSING – While a lack of affordable housing remains a top issue, there are “bright spots” in the state’s housing situation, according to Kelley Kuhn, the president of the Michigan Nonprofit Association.

“If a community is looking to build housing or do economic development improvements in the community, they may be working in partnership with a local unit of government, like a city or a county,” Kuhn said.

“But likely they are also partnering somewhere with a nonprofit organization focused on economic development as well,” she said.

Kuhn said public-private partnerships between state and local government institutions, such as the Michigan State Housing Development Authority, and private entities like local nonprofits can help solve housing shortages.

With government support, these nonprofits can also target the specific needs of the communities they assist as priorities.

“They are going to refurbish buildings and communities and repurpose land, but they’re going to center people who are going to be using that housing, and what they need and what that looks like,” Kuhn said.

A lack of affordable housing is not unique to Michigan.

Proposed solutions have received bipartisan support in many states, according to an article by Stateline, a national nonprofit news service.

In 2022, Gov. Gretchen Whitmer signed legislation intended to reduce housing costs and solve shortages.

The bills included the establishment of tax-exempt residential housing districts, as well as funding for building new homes and repurposing existing buildings and land.

In the same year, MSHDA released a statewide housing development plan, which included goals for the following five years.

Those goals would be implemented by private partnerships receiving state support, including 15 regional partnership agencies.

Nearly four years later, Lisa McKenzie, a regional planner for the Western U.P Planning & Development Region based in Hancock, says progress since has made for many happy homeowners.

The projects completed in the region so far include 54 single-family home rehabs, with 10 more on the way.

Current projects include homes in Houghton and Hancock as well as Iron County.

McKenzie said the partnerships have had economic impact and improved stability.

Michele Wildman, the senior vice president of community planning and development readiness of the Michigan Economic Development Corp., said growing vibrant and resilient places is an integral part of the agency’s economic development work, including housing that is affordable for Michigan’s workforce.

In each of its 10 regions, the MEDC has community development managers who accept applications from local partners.

“Through our placemaking tools, the MEDC, in partnership with communities and developers, then makes investments in vacant and underutilized properties across the state,” Wildman said.

Notable recent projects from the MEDC include Preserve on Ash in Detroit, Lofts at Lumber Square in Petoskey and Sawmill Lofts in Grayling.

Wildman said that the affordability of housing in MEDC’s projects is ensured differently based on the project and community.

“Sometimes projects may include funding from other public partners that monitor for affordability. Other times, there may be a local municipal partner, such as a local unit of government or local housing authority, working with onsite property management to help connect families with differing affordability needs,” Wildman said.

“These investments help communities revitalize key corridors, create more inclusive economic opportunities and build places where people want to live, work, and grow,” Wildman said.

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This story was provided by Capital News Service at Michigan State University.

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