Our community is facing a housing crisis. We do not currently have enough safe, affordable housing options to meet the needs of our community's workforce. One solution to this problem is the Lofts at Lumber Square, a new 60-unit housing development located in Petoskey.
Want to know more about this project? Check out the FAQ below.
This development is designed to meet the needs of our "missing middle" or middle-income community members. These are people who work here, but still can't find an affordable place to live here. The Lofts at Lumber Square will provide a safe, affordable place to live for households earning between $50,400 (one-person household) and $101,880 (five-person household), assuming they will pay no more than 30 percent of their income.
As of fall 2024, the rents for these units are expected to be $1,150 to $1,550 per month.
The project will be owned and managed by Northern Homes Community Development Corporation. Northern Homes is a nonprofit organization based in Boyne City whose mission is to create and preserve quality affordable homes in Northern Michigan. They have a successful track record of owning and operating apartments in the Petoskey Area.
Workforce housing is housing that is affordable to an area's workforce.
Affordability can be deeply personal and can mean different things to different people; what one household might consider affordable could be very different from another. When it comes to government housing programs, however, there are some parameters and definitions for what is considered affordable.
In short, affordability is based on area median income, aka AMI. Low-income typically refers to households earning less than 80% of AMI. Workforce housing typically refers to households earning 80-120% of AMI.
For your reference, as of Fall 2024, Emmet County's area median income for a four-person household is $90,000, and the AMI for a single-person household is $63,000.
The Lofts at Lumber Square will be available for less than area market rents thanks to funding from generous donors, government grants, and the work of our nonprofit partners.
The high cost of building materials, labor, and land results in new homes costing more to build than the local workforce can afford.
To fill the gap in funding and keep the apartments affordable, developers need to turn to alternative funding sources.
The Lofts at Lumber Square housing development is made possible thanks to the generosity of donors. Every dollar donated unlocks over three dollars in grants and low-interest loans. Thanks to $3.7 million in donations, we will meet our $18 million budget.
Construction is underway, but we are still fundraising for this project.
The Lofts at Lumber Square are currently under construction. An official waitlist will be created about six months before move-in. In the meantime, those interested should contact Northern Homes to be the first to know about leasing opportunities.
We are getting closer to our goal every day, but we still need your help! As of fall October 2024, we have raised $2.7 million in philanthropy.
We still have just under $1 million in donor funding left to raise.
Click the donate button to donate now, or contact us at (231) 348-5820 to discuss ways you can support this project.
We know there is no one-size-fits-all solution to our area's housing crisis. We need housing options in all shapes and sizes. Thankfully, many area individuals and organizations are working to provide more housing options for our community, and the Community Foundation is proud to be able to support many of them.
Some innovative housing solutions include work by the following nonprofit partners:
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Thank you to the project partners recognized above.
In addition to these important organizations and agencies, this project would not be possible without the help of numerous private donors.
A heartfelt thank you to our generous friends and neighbors who recognize the urgency of this issue and are playing a vital role in helping solve it.
