Housing Projects & Developers to Keep an Eye on in Traverse City
It is estimated that Grand Traverse County needs to add over 800 rental units per year to satisfy housing demand. Building housing in Traverse City can seem impossible, but some developers already have exciting projects in the works, and recently passed housing legislation has the potential to help even more.
Innovo Development Group
Innovo Development Group describes themselves as “passionate about improving lives by providing people with a great home to live in, build their own memories and enrich our community”.
The Development Group is currently working on The Godfrey, a mixed-use development on 125 and 145 Hall Street in Traverse City. The plans include 97 workforce housing designated apartment units, with retail space on the ground floor.
Innovo was the development group behind the Breakwater Apartments, also located in Traverse City. The Breakwater project was finished in August of 2020, but Innovo is seeking a Payment in Lieu of Taxes (PILOT) from the City of Traverse City to offer workforce housing within the building. The apartment complex currently has 78 units, but if the PILOT is approved, Breakwater will be renovated with additional studio and one-bedroom units. Under the PILOT agreement, Breakwater will house more than 90 workers earning 80 to 120 percent of the area median income (AMI). Use of PILOTs by local communities in this way was only recently made possible by new legislation passed in Michigan. Click here to learn more about Housing North’s involvement in this legislation.
Innovo believes that “workforce housing is a critical piece of the fabric of a community” and says they are “fighting hard to make sure workforce housing remains a community priority and actually gets done”.
“We are fighting hard to make sure workforce housing remains a community priority and actually gets don
Innovo Development Group
Woda Cooper
Make it stand out
Woda Cooper is an affordable housing firm, meaning they develop, construct, and manage affordable housing projects. Woda says they “believe that affordable housing options are the cornerstone of strong communities.” Their most recent projects in Traverse City are Ruth Park and Annika Place.
Annika Place is located at 947 S. Garfield, and broke ground on December 1st 2022. The apartment building will have a mix of one bedroom and two bedroom apartments, with 53 units total. The project received funding from the Michigan State Housing Development Authority’s (MSHDA) Low-Income Housing Tax Credits (LIHTC) program. The building will provide affordable rental housing for residents that earn 30% to 80% area median income, as well as eight units that will utilize vouchers from the Traverse City Housing Commission.
Woda’s other project in Traverse City, Ruth Park, is nearing completion. Ruth Park is located at 947 S Garfield and hosts 53 rental apartments, including one bedroom, two bedroom, and three bedrooms options. Very similar to Annika Place, the project also received funding from MSHDA’s LIHTC program, and will target residents that earn 30% to 80% area median income. Once construction is done, it will be certified Leadership in Energy and Environmental Design (LEED) Silver by the US Green Building Council.
HomeStretch
HomeStretch is a nonprofit housing developer based out of Traverse City that has been creating affordable housing since 1996. Their mission is to “provide decent, affordable housing for persons of low and moderate income [...] and preserve the quality and affordability of housing for present and future low to moderate income residents of the community.” HomeStretch has been involved in several recent housing projects in Traverse City, as well as Honor and Suttons Bay.
Their most recent project is only in the beginning stages of development, and is only referred to as “Lot O”. The proposed development will have 60 apartments and ground floor commercial space. Two floors of the building will include shared housing spaces. HomeStretch is committed to having 80% of the apartment within the building remain at an affordable rate in perpetuity. Homestretch has planned to construct using mass timber; an innovative technique that is more energy efficient and environmentally friendly than traditional building. The proposed development site is currently a large parking lot on the corner of Cass and State street.
Supporters of the project believe that this project will not only add additional housing to the downtown area, but also support the local economy by helping local businesses in their hiring. In the past Homestretch has made use of PILOT agreements within Traverse City, and it remains to be seen if they will ask for another with this new project. The capabilities of PILOTs within local governments has been expanded under the new housing bill package recently signed into law, so this could be the first project in Traverse City to use an updated PILOT.
Commongrounds Cooperative
Located at 414 E. Eighth Street, Commongrounds is a new mixed-use development that will be completely finished and open to the public in April 2023. The building received its first residents in November of 2022. The building’s upper floors contain 20 long-term rental units, with approximately 75% of the housing units renting at below market rate. Rent varies based on the applicant’s income because it is calculated using AMI levels annually determined by MSHDA. The lower floors of the building contain business spaces, an event space, a food market, and an early childhood center.
One exciting aspect of this project is its fundraising strategy, which utilizes a unique cooperative model that emphasizes community investment and tenant ownership in the property. Real estate co-ops only exist in a few other places across the United States, making this an innovative project at the state level.
Combined, these projects will bring almost 300 crucial housing units to Traverse City over the next few years. Recently passed legislation allows for more local control and new use of property tax exemptions and PILOTs for housing. With these tools available, we hope to see even more successful housing workforce projects in the works in Traverse City. Read more about the Neighborhood Enterprise Zone Act, Residential Housing Facilities Act, Attainable Housing Facilities Act, and expanded PILOTs.
Housing North will continue to be a partner of any organization that is seeking to create affordable housing in Northern Michigan.
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