As Michigan's real estate costs continue to rise and homes are being bought for rental and vacation use, experts say there's a lack of attainable housing across the state. This is especially true in rural areas, like northeast Michigan.
This is where the Lake Huron Regional Development Corporation comes in. A subgroup of the Target Alpena Development Corporation, Lake Huron is a new 501(c)(3) nonprofit looking to help create new housing across the 11 counties of northeast Michigan and attract talented workers to become a part of local communities.
A recent housing needs assessment through Target Alpena discovered that northeastern Michigan is 11,000 units short of breaking even in housing, a 0.8% vacancy rate. According to Lenny Avery, Target Alpena's executive director, and the head of Lake Huron Regional Development Corporation, this means there are essentially no vacant homes for people to move to.
"We need more single family housing to attract young people who are first time homebuyers to attract talent to move into this area," Avery said. "We have a lot of manufacturing and opportunities."
In the corporation's pilot program, the team is working with the city of Onaway to built four units downtown through a MI Neighborhood grant with the Michigan State Housing Development Authority (MSHDA).
Using the grant, Lake Huron purchased the lots from the city at a discount and will prepare them for manufactured homes, with the corporation passing those savings off to the eventual homebuyer.
"Corporations say they would expand if we can find workers, or if the workers that they have could find housing," Avery explained. "We can bring in engineers and talent, but...the housing market or the apartment rental(s) are so slim."
To be eligible, a person must have a credit score of at least 600, be a resident of Michigan and have been approved for a mortgage. Once the home is built at a relatable cost to the homebuyer they will be required to use the home as their primary residence and live there for a minimum of 10 years. The restrictions are in place to ensure the housing goes to someone building a life in the community over someone who would use it for a vacation home or to flip it.
"Home buying is a key to economic mobility. You can really raise yourself out of your tax bracket with a home loan purchase," Avery said. "You can leverage your home to do a lot of things. Home buying does that. It unlocks the potential for that individual to gain wealth."
Lake Huron has also received a $500,000 grant to help with housing rehabilitation in Alpena, Presque Isle, and Alcona counties. With that, they were able to help 19 families rehab their homes and remain as they age.
"We added ramps, bathrooms, fixtures and remodels, new furnaces and new roofs to aging housing stock," Avery said. "And that was just one step."
For the pilot program, the corporation is connecting with potential home buyers and work with grant programs to build their homes at an affordable cost.
"So let's say you are given a home loan. Well, look at vacancy rates, look at the pricing, and now you can't find a home in your wheelhouse, because most homes are $350,000 to $375,000 or higher," Avery explained. "This is why Lake Huron Regional Development Corporation was created, to bridge that gap."
