Running head: HOUSING 1

Policy Paper

Michele Gillespie

Spring Arbor University

SWK510: Social Welfare Policy and Services

Randy Baxter

September 14, 2019

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Policy Paper

Affordable Housing Crisis in Northern Michigan

The problem and hence related policy discussed in this paper is the lack of affordable

housing in Northern Michigan and the dire need for housing. Housing is a basic need of all

people and no one should be denied access to housing that is affordable and meets their needs.

The lack of affordable housing is also causing business to struggle and inhibiting new business

growth. As stated in an article written in August of this year, “Local leaders and housing

advocates say a lack of affordable housing is one of the greatest barriers to the region’s economic

growth.“(VanHulle, 2019).

Identify the Causes to That Helps to Frame the Problem Identified

There are multiple root causes to the housing crisis in Northern Michigan, and the

problem cannot be pinpointed to one reason. However, one of the reasons is housing is short is

due to the housing collapse of 2008/2009. During this period many people lost their homes to

foreclosure, and those homes were snatched up by investors to either flip or rent. However, there

were so many people looking for homes during that time, that the houses that came for rent were

easily snatched up. In addition, during the housing crash there was a nationwide recession, and a

state-wide recession and many of the builder in the area were out of work since most all building

stopped. Those builders either went into a different line of work or moved to other areas of the

country to build. Since that time, there has not been a large increase of builders to our area nor

new construction happening. If you consider NW Michigan, most of it falls into the seasonal

resort category. Not only is it a seasonal resort area, but most of NW Michigan is also rural in

nature. The combination of this leads to a disparaging housing gap as we have many lower

income residents along with many second home owners who are very high income“ seasonal”
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residents. In General, developers are not motivated to build housing for lower income residents

as there is not significant money to be made. Developers are attracted to building very high-end

homes, where the profit margins are much greater. So, most of the new housing that is being

built in NW Michigan are high end homes near or on the lakefront

What Are the Values and Beliefs That Make the Events of Concern Defined as a Social

Problem?

Housing and the lack of housing, is a social problem, not just a personal problem. If

families do not have adequate housing how will they be able to provide a safe and nurturing

environment for their children, or be productive members of society and thrive in the

workforce? I personally know of families who have had to camp all summer in rustic

campground and have not had access to basic things like showers, to be able to be clean and

presentable for work. They then lose their jobs and are slid further into a hole and less likely to

climb out of it.

Why Is or Not This Concern Being Raised?

Thankfully in the past few years the shortage of affordable housing in Northern Michigan

has been brought to the attention of the community, media and the political realm. Organizations,

housing commissions and housing summits have sprung up all around Northern Michigan to help

address this problem. One of the recent partnerships that formed is called the “Northwest’s

Regional Planning & Development Department “, which is an offshoot of Networks Northwest.

This is their mission :

“Providing housing choices to all residents in the regions continues to be a

priority for much of Networks Northwest’s service area. Networks Northwest’s

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Regional Planning & Development Department works with local partners, both

in the private and public sector, to ensure that the region’s workforce has access to safe,

economical, and desirable housing. Some of our activities include

communication and outreach; technical assistance and resources to assist

communities in updating policies that affect affordable housing; and best practices research and

analysis for communities.“ (Networks Northwest, 2019)

The latest offspring of Networks Northwest Regional Planning is the Northwest

Michigan Rural Housing Partnership. This partnership is very new and in development

stages. The partnership developed as a collaboration of Traverse City-based regional planning

agency Networks Northwest and the Northern Michigan Community Health Innovation Region,

along with other public, private and nonprofit contributors, including Grand Rapids-based Frey

Foundation. The partnership’s efforts will be focused on a 10-country region that includes

Antrim, Kalkaska, Grand Traverse, Leelanau, Benzie, Manistee, Charlevoix, Emmet, Missaukee

and Wexford counties.

Identify the Way This Problem Fits Into Its Current Historical Context. Is This a “New”

Problem?

This is not a new problem, housing shortage has been a problem for at least 20 years in

Northern Michigan. However, the problem has gotten worse in the last decade and even so more

in the last three to five years.

F. Who Is Now Defining This Issue as a Social Problem and How Is That Different From

the Past? What Conditions Are Different? How Is Society Different?

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A decade ago, the housing problem in Northern Michigan was smaller in scope and

mostly only those in the housing realm were concede about it. However since then the housing

issue has become such a crisis that it really has become a widespread social problem in Northern

Michigan, in Michigan as a whole and even across the nation. There is a large increase of those

in need of affordable housing in our area, and the inability to find housing is affecting business,

schools, and the community as whole.

“Shortages of affordable rental housing have far-reaching community impacts.

Employers in some communities are reporting difficulties in finding workers,

due in part to the lack of affordable housing and rental choices. Homelessness

needs have also increased, as many individuals struggle with issues connected to finding,

affording, and maintaining stable housing situations. Stakeholders report that

even when housing assistance or income is available to help transition

individuals out of homelessness, the needed rental housing is not available.“(Framework for our

Future, 2014, p. 10)

What Social Welfare Policies and Programs Are Relevant to the Problem? Is There a Role

for Social Work? If So, What Is the Role of Social Work?

I believe that Social Work organizations need to connect to these new ideas and

initiatives that are in the works so they can provide insight on the population in need and also

provide additional insight, ideas and resources. Social workers can help to facilitate the new

housing initiatives and make sure they will practically work for the target population.

Policy Goals
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Policy needs to change to accommodate the need for affordable housing in Northern

Michigan. Current policy in regard to local zoning, does not allow for multifamily housing

except for in very limited areas. One policy goal would be to changing the zoning across the

board in several Northern Michigan counties to allow for additional housing beyond the standard

single family residence.

Some local planning and zoning policies can raise the costs of development or prohibit

certain types of development. These “regulatory barriers” can be major obstacles to creating

certain types of housing – particularly affordable housing. Studies have determined that a

number of regulatory barriers exist in the area—such as limited opportunities for alternative

types of housing such as multi-family or accessory dwelling units (granny flats) Strength

Perspective Relating to These Goals

A strengths based perspective looks at these policy goals and see how they will best

correlate with the strengths of the population who is in need of the affordable housing.

What Are the Goals of the Policy? What Did Any Policy Makers (Legislators, Government

Officials, etc.) Hope to Accomplish?

Here are some of the main policy goals:

 Develop greater financial and programmatic capacities to support and enhance housing

efforts of existing nonprofits.

 Support and encourage new housing development that is affordable, well designed, and

compatible with the regions unique character.

 Encourage affordable housing that is accessible to the growing numbers of seniors and

persons with disabilities.

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 Coordinate planning and zoning policies that encourage greater housing choices across

government boundaries.

To elaborate, revising zoning to allow for additional housing types or densities, especially

in cities and villages, would make it easier for developers and nonprofits to create additional

affordable housing. Also, some communities use incentive-based zoning to encourage developers

to incorporate affordable housing into their residential or mixed-use projects. This zoning

technique offers higher density, design flexibility, parking reductions, or other incentives in

exchange for a certain amount of affordable housing.

Another policy goal would be to create land bank authorities in the local communities. A

land bank authority is a governmental body that can be established by counties to manage the

tax-foreclosure process. “When properties are foreclosed upon for non-payment of taxes, land

bank authorities can take ownership of and/or manage the property. They may also buy land and

buildings, or receive donations of property. Once a property is held by a land bank, it can be

sold, rented, redeveloped, or simply held and maintained tax-free until it’s ready for sale or

redevelopment. And, when a property is owned by a land bank authority, it is eligible for other

types of financing or tax incentives that can make affordable housing easier to develop.”(Grand

Vision Housing Solutions Network, n.d.)

Another additional positive policy that local communities could set up are housing trust

funds. Revenues from certain taxes, fees, or sale of publicly-owned property are dedicated by a

local government to a fund that may only be used for designated housing activities – such as

building new housing units, providing rental assistance, or meeting needs of homeless

populations.(Grand Vision Housing Solutions Network, n.d.)

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There are additional “policies” that can be created and implemented, such as creating

zoning that allows for Accessory dwelling units (ADUs)—also known as accessory apartments,

in-law apartments, granny flats, or secondary units. These units are a great way to increase the

housing supply within existing neighborhoods without taking away from the character. ADUs

are small rentals that are built upon a lot within an existing home. (Community Housing Choices,

n.d.) Another great policy to implement to assist with developing affordable housing are to

implement a technique known as inclusionary zoning or inclusionary incentive zoning. With this

tool, developers include certain amount of affordable housing in new, mostly market rate,

residential developments.

“To encourage builders to participate in inclusionary programs, most ordinances offer

incentives that can offset costs and provide valuable flexibility for a project. Density bonuses,

which allow a developer to build more units than normally allowed, are a common incentive; but

incentives may also include flexibility for parking, height, and setback standards. Regardless of

the incentive used, it’s important that its attractive to developers, in order to encourage the use of

voluntary inclusionary regulations. By offering carefully designed incentives, local governments

can ensure that the inclusion of affordable housing makes economic sense to the builder.

” (Northwest Michigan Council of Governments, n.d.)

What Is the History of the Policy, Human Condition, and Environment as It Relates to

These Goals?

The history of the housing crisis shows that it has been largely unpublicized and little

comity involvement until the last decade in Northern Michigan. The Housing Solutions Network

was developed in the late 1990’s to address the housing crisis, but this network did not make

large strides in reaching all the communities through grass roots efforts.
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Stated Goals vs. Unstated Goals. Are the Goals Clear and Measurable?

The policy goals are clearly stated, not only in this paper but in several of the references

cited in this paper. Creating policies that would expand the affordable housing in Northern

Michigan are clear. If these policy ideas are implemented, such as zoning to allow for more

multi-family residences, and updating low-density zoning rules, can allow for a large increase in

affordable housing.

Benefits or Services Provided

Currently Northern Michigan has several agencies that provide housing benefits. One of

the main ones, is the Northwest Michigan Community Action Agency. Northwest Community

Action Agency has a number of programs. Habitat for Humanity is another one, and they

provide homes to qualifying participants, that are 0 percent interest , however they usually only

build one or two homes per year per county. Goodwill Industries is another organization and they

provides shelter housing and transitional housing.

Strength Perspective Relating to These Benefits and Services

The Northwest Michigan Community Action Agency provides several services that focus

on the strengths of the clients they serve. For example, they provide first time home buyer

seminars that teach people how to purchase a home the right way. They also offer down payment

assistance, which is a strength based program. The down payment assistance program requires

participation from the recipient, as they need to bring $1,000 of their own finances to the

program and participate in educational classes for home buyers. (Northwest Michigan

Community Action Agency, 2019)

MSHDA provides housing vouchers for low income families to get subsided housing of

their choice. These vouchers pay the difference between what someone can afford to rent a
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property at based on their income and what the landlord is asking for in rental fees. As it states

on the MSHDA website, “This federal program provides rent subsidies for very low income

people who find their own housing in private homes and apartment buildings.”(Michigan State

Housing Development Authority, 2019)

B. What Are the Expected Benefits or Services Provided? Are They From a Worthy vs.

Unworthy Perspective? Do They Provide Choice for the Recipients?

As mentioned above, there are currently service providers who provide home buying

education to prospective buyers, those who provide emergency shelters (in Grand Traverse

County), those who offer housing vouchers to offset rent costs and organizations that build

homes for low income people and provide 0 interest loans. If a person or family is in need of

housing, there are a variety of organizations they can approach to take steps towards finding the

housing they need. Many of these programs are based need and income, as those who receive

the benefits many times must meet the low income guidelines. There are not many “choices”

available currently for recipients as what is available is so low and there typically is a waiting

list.

Are They Cost Effective?

Most of the current benefits in terms of housing are affordable for those who meet the

income guidelines. The costs are offset by MSHDA and a variety of organizations mentioned

above that assist with housing needs.

Identify Outcomes Resulting From These Factors

Currently there are some good programs available for those who need housing benefits to

be able to meet their housing needs, however there is not enough housing to go around. There
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are more homes, apartments and multifamily homes that need to be built, renovated and made

available to those who are looking for housing through one of the channels mentioned above.

Eligibility Rules

Currently, income is main guideline that determines edibility for the programs that

provide housing assistance to the at need population. The programs mentioned above all have

income guidelines to be eligible to apply for their programs. For example, to be eligible for a

MSHDA housing voucher, applicants must have income at or below HUD-specified income

limits for their area.(MSHDA, 2019)

Strength Perspective Relating to Eligibility

Those who many need housing, many times are low income and are benefited by these

housing programs. Many times, they may be able to gain some “advancement” in the status of

their life, by finding affordable housing that can meet their needs. Housing provides a solid

foundation for people to be able to thrive in terms of working, raising a family and being

proactive members of their community.

What Are the Rules of Eligibility?

As mentioned above, the programs for housing assistance are income based, and those

guidelines vary per the organizations policy. Most organizations that are local also require that

participants qualify on the basis of citizenship or the eligible immigrant status of family

members.

Do They Address Social Justice, Including Economic and Environmental Justice?

Currently, I do not feel that the eligibility rules are socially just, as they do not include a

large portion of the population that could use assistance with affordable housing in Northern
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Michigan. There seems to be help provide for only those who are in the very low income

section. There are many low to moderate income families such of those who are police, teachers,

services workers who cannot afford housing in Northern Michigan.

Service Delivery System

From what I can assess, the current main delivery system is through MSHDA - Michigan

State Housing Development Authority. However, many of their services are facilitated through

local organizations, such as the Northwest Michigan Community Action Agency (NMCAA).

Strength Perspective Relating to This Delivery System

As mentioned above, NMCAA, looks to partner with people in education, and assistance

in a way that helps them but also empowers them through programs such as home buyer

education, home down payment assistance and homelessness prevention through foreclosure

assistance. MSHDA, the parent organization that many local organizations are tapping into, such

as NMCAA offer many strength based programs as well, such as home owners with assistance in

their Step Forward program, helping potential home buyers with down payment assistance and

helping those who are low income and renting, with housing vouchers.

Describe the Anticipated Service Delivery System for Implementation

As the housing crisis continues, there is a need for a broader range of housing assistance

for those who are looking to rent, buy or keep their home. Income guidelines need to be looked

at and revamped, as currently many low to moderate income families do not qualify for benefits.

Communities could continue to utilize delivery systems such as NMCAA to provide a

range of benefits to those who need housing. I think their needs to be one main organization that
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people start at to apply for and received housing assistance. This organization then could spread

into multiple offices throughout Northern Michigan. NMCAA might be a good start.

Is the System Adequate to Meet the Desired Goals? Does It Include? I. Incorporation of

Client Choices Ii. Inclusion of Existing Resources/History Iii. Reflection of the Target

Population Iv. Ability to Achieve Desired Outcomes v. Accessibility for the Clients to Be

Served

The current delivery systems do make a difference in our community. However the

services are limited and do not reach to a wide range of the population that is in need. In

addition, there is a severe shortage of housing which makes it a challenge for the system to help

those who could use it. Many times, those seeking services are very limited by the choices that

may be available and those choices may not truly meet their needs. For example, the only

housing available that is income based or willing to accept MSHDA housing vouchers may be

very small apartments that are not adequate to house a family of four or five or greater.

The main struggle for the service delivery providers is the lack of housing, again as

presented in this policy. An increase of available and affordable housing is the main issue at

hand. Even the NMCAA website states, “*Please note: There is a shortage of housing resources

in certain areas of this region and NMCAA is not able to help all people experiencing a housing

crisis with immediate housing access.“(Northwest Michigan Community Action Agency, 2019).

Financing

Describe the Financial Means to Pay for, Support and Sustain the Policy. Identify Its

Connection to Policy Goals or Other Factors Above

Currently the main source of financing for the organizations mentioned above is

government based financing through both the federal government and the state government. As
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stated in A Framework for Housing Choices in Northwest Michigan, “Affordable housing

providers and developers depend on support from state and federal agencies to respond to

housing needs. However, housing policies offer little flexibility for communities to respond to

changing trends, while decreases in funding funding leave many agencies struggling in the face

of increased demand.” (Framework for our Future, 2014)

Public v. Private Funding

As just discussed, most of the funding for housing assistance in Northern Michigan is

public funds. The federal government provides grant to agencies along with the State of

Michigan. Those funds are very helpful but are not enough to meet the needs. There are some

local agencies that provide funding for housing initiatives, such as Habitat for Humanity in a

nonprofit way. However, the funds that Habitat for Humanity has are designated in very specific

ways, such as building one or two homes per year for qualified candidates. More local private

funding needs to be established. One way to do this is through local housing trust funds.

Establishing local housing trust funds can help to meet the specific and growing need and it can

be tailored to our local communities. (Framework for our Future, 2014).

Conclusion

Has the Policy Been Effective? Did It Follow a Strengths Perspective? If So, How? If Not,

Why Not and What Could Have Been Done to Ensure This?

Currently the housing assistance policies in place and administered through local

organizations are effective to a degree. As mentioned above, organizations such as NMCAA

strive to offer assistance to participants from a strength based perspective. As I researched the

variety of organizations that are involved in assisting with housing, it seems they have are

focused on operating from a strengths base perspective. For example, the Goodwill Inn provides
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immediate housing for homeless, but then the goal is to transition them into “transitional

housing” that would facilitate them in getting back to a place of stability while guiding them in a

way that would utilize their strengths. (“Goodwill Inn Homeless Shelter”, 2019).

What Changes Can You Identify in the Policy Since Its Enactment? Did These Changes

Make a Difference Either Positively or Not?

MSHDA was developed in 1966 and has been creating and administering housing

programs since it was founded. Many of these programs have been successful, such as the

housing vouchers, which aid low income households by paying a portion of their rent each

month.

Northwest Michigan Community Action Agency was formed in 1974, as a mergers of

two established community action agencies. Since then, NMCAA has been focused on

strengthening communities by helping individuals and families achieve economic stability. A

portion of the efforts of NMCAA has focused on assisting people with housing. The efforts of

NMCAA in our area have been effective from a limited standpoint. A small portion of the

population in need has been able to receive education, coaching and others services to become

more stable in terms of purchasing a home. NMCAA has also been effective at assisting those

who are facing foreclosure and has helped many people and families stay in their home.

Does the Problem Still Exist? If So, Why?

There is still a housing crisis in Northern Michigan. As discussed in detail previously,

there is a lack of housing. The main issue at hand is that there is not enough housing that

actually exists that is affordable for the working class, the disabled, and seniors living on a

What Are Your Recommendations for Future Action From a Strengths Perspective Based

on Your Analysis, Including Suggested Policy Changes or Approaches Toward More

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Effective Outcomes Regarding the Problem You Identified? Consider Each of the Headings

1-6 and Make a Recommendation That Addresses Each of These Topic Areas in Some

Manner.

I live in Northern Michigan and on a daily basis am affected by the lack of affordable

housing. As a Realtor, I get calls almost daily of people looking for local rentals, many of those

calls are from families who need a home. Also, I represent many qualified buyers who cannot

find an affordable home because there are limited homes for sale in their price range and most of

them are sold quickly. There is an abundance of homes that are for those who are wealthy and

can afford a vacation home, second home or an extravagant retirement home.

Even though there are currently programs in place to assist with housing, I feel as they

are fairly limited and for those who are very low income, disabled or seniors. Local policy need

to change to make house assistance available for a broader range of people, especially the “low

to moderate” working class. However, even if these policies are put into place, additional

housing needs to be constructed and old, vacant homes, those maybe with tarnished titles and the

like need to be renovated. Housing developments needs to be created that are a mix of homes.

New homes needs to be built within the local towns and communities so it properly blends in.

A mix of current policy change and new policies put in place is a good start to solving the

houses crisis. Zoning can be revised, as stated in the Citizen’s Guide, “ to allow for additional

housing types or densities, especially in cities and villages, and this would make it easier for

developers and nonprofits to create additional affordable housing.“(Grand Vision Housing

Solutions Network, n.d.). Additionally, housing trusts could be created. A housing trust is is a

local source of revenue that’s used to support affordable housing activities. This can include

building new homes including multifamily homes. Housing trust funds provide a stable source of
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funding that local housing developers can depend on for projects that meet the community’s

greatest needs (Grand Vision Housing Solutions Network, n.d.).

In regards to benefits, new polices need to be created that allow for a broader range of the

population to receive assistance with housing. The benefits in Northern Michigan for housing

are limited to those with very low incomes and those who are disabled or senior status. This

applies to Eligibility as well, as the income guidelines need to be expanded to the working class.

The Citizen’s Guide to Housing Solutions lists those in the working class who fall in certain

guidelines including those workers who fall 80% less than the local median income, 50% less

than the local median income and 30% less than the local median income. Some of the class of

workers include teacher, police officers, beauticians and counselors. Many of these workers are

spending 40%, 50% or more of their income on housing alone.

In regards to a service delivery system, the current form of delivery through the NMCAA

could be a good option to continue to provide housing assistance and thus facilitate it to a

broader range of the population based on need and income. This organization could head up the

entire housing assistance and branch out to local towns and villages.

Financing is the most challenging part of the housing crisis in Northern Michigan.

Federal and State grants are helpful but they are not enough to solve the problem and they are

limited because of the guidelines that are associated with them. To solve this problem it is going

to take a partnership between public funding, private not profits and other private parties, such as

wealthy community members, to come together to subsidize the creation of affordable houses.
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References

Community Housing Choices. (n.d.). HOUSING AFFORDABILITY STRATEGIES LAND USE

STRATEGIES

Accessory Dwelling Units. Retrieved from

http://www.newdesignsforgrowth.com/pages/ndfgprograms/communityhousingchoices.ht

ml

Framework for our Future. (2014). A Framework For Housing Choices In Northwest Michigan.

Retrieved from https://www.networksnorthwest.org/userfiles/filemanager/3189/

Goodwill Inn Homeless Shelter. (2019). Retrieved from https://www.goodwillnmi.org/homeless-

housing/goodwill-inn-homeless-shelter/

Grand Vision Housing Solutions Network. (n.d.). Citizens Guide to Housing Solutions. Retrieved

from

http://www.thegrandvision.org/local/upload/file/Citizen’s%20Guide%20to%20Housing%

20Solutions(1).pdf

Michigan State Housing Development Authority. (2019). Housing Choice Voucher Program.

Retrieved from https://www.michigan.gov/mshda/0,4641,7-141-5555_41607---,00.html

MSHDA. (2019). Eligibility Admin Plan. Retrieved from

https://www.michigan.gov/documents/mshda/Chap_03_Admin_Plan_600771_7.pdf

Networks Northwest. (2019). Housing. Retrieved from

https://www.networksnorthwest.org/community/housing-choices/housing.html

Northwest Michigan Community Action Agency. (2019). Housing. Retrieved from

https://www.nmcaa.net/housing.asp
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Northwest Michigan Council of Governments. (n.d.). HOUSING AFFORDABILITY

STRATEGIES: LAND USE PRACTICES

Inclusionary Incentive Zoning. Retrieved from

https://www.networksnorthwest.org/userfiles/filemanager/2914/

VanHulle, L. (2019). High housing costs in Traverse City now hurting more industries in region.

Retrieved from https://www.bridgemi.com/michigan-government/high-housing-costs-

traverse-city-now-hurting-more-industries-region