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Thank you very much for coming tonight for this joint meeting, this joint housing meeting. Today, if you're thinking of official, I have a two-legged, official chair, mayors set, and townships, to the right and the right side. If you can, we'll call you to board a set board, mayors from the community members.

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First, how about we have an honor to see it up?

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So, everybody is from the United States.

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I'm just going to say that we'll call this,

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so we're all going to call off the roll.

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All right.

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Thank you.

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Thank you.

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Thank you.

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Thank you.

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All right.

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Thank you.

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All right.

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Thank you.

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Thank you.

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All right, and both of you are planning to meet over and out.

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Thank you very much.

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I know that both of you would like to get some of your information on the board.

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So if you'd like to come up here, thank you very much again for coming to our housing workshop.

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Just a couple of cool things.

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We anticipate this to go to about a matter of fact based on a little comment in the presentations.

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I do anticipate a small five-minute break after Mr. Kilpatrick's presentation case.

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Anyone has two directions, which will be located out to this quarter and middle of the hallway.

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Thank you again for coming here.

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We are going to be talking about a detailed positive plan.

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Mr. Kilpatrick has prepared for our two communities, the city of Southay and the Southay and South Georgia.

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We will be discussing what is in that plan.

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And we'll also be just discussing a number of options and barriers that are facing our communities.

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And I know another you may know about an over-tune site.

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This is not necessarily the focus of over-tune tonight, but we keep that effect in your head

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if you know our relationship with the habitat is no longer.

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This city will have to explore what our options are next to the over-tune site.

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Also today, we have a planning commission chair for Township,

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our island up here to kind of go over some of the township projects that are outlined

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or in the case of a shoot, and some of you may have known what those are, so I'm glad I was

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getting a brief fight in the presentation. Anything else Mayor Smith or Supervisor Stein?

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Okay, what's that? I'll have one. I'll put it up in a given short presentation. Thank you.

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Thank

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you. Thank you. I've been asked to do a brief high level overview of what's happening

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in self-saving township right now in terms of different levels of housing that we're working on.

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And I do want to let you know that our focus in the township is broad.

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We look at it from the perspective that we need housing at all cost levels, and that's

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the focus where we are, and as I go through this, I think you'll quickly see that that's

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what we're doing.

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So we're going to start with a project that's already in the works that has been approved.

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20 acre site, 12 parcels, six are sold already.

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This is the Woodcriss subdivision on 77th Street.

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There are three completed homes, 200 construction, and another one in the phase of developing the plans for it.

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So, this one is on Doctors' Road, 77th Street,

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and some of those lots have late views.

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Some of them are at Forest and Blueberry Hill views.

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Coming soon is a property that we have re-sold,

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and we have approved from the Planning Commission

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in public hearings, and we'll be going

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to the top ship border next week.

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This is a 10-year parcel immediately next to the Holiday Inn, just east of the

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Holiday Inn in Southeast. Two acres, commercial ten acres, multi-family housing.

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There will be 100 market-grate housing units, apartments, one to bedroom.

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There are four 16-year buildings, two 18-year buildings, total 100, 227

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parking spaces and 48 graduates and you just get a look at the site plan here it's pretty

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efficient use of space these are market rate so the market will determine really what these are

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we are hoping that this is the type of project that teachers, teachers, school teachers, police officers,

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others that other lines cannot find housing in South-Aid and we'll find a

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tractor. So that one is ready to roll. Happen next week. Very

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recognizable developer that we think will do a good job for it.

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The next one that

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I want to talk about is it's called trailside but it's not to be confused with

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the trail site subdivision in South Africa.

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I'm not sure why he chose that name or whether he will leave it that way.

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But what this is is a total of 18 tiny homes

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of no more than 600 and 80 square feet.

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Most of them will be less than that.

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They are detached.

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There are 25 toy barns.

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Somebody asked me just a few minutes ago.

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It's a toy barn.

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It's a story game for folks, RVs, stuff that you otherwise don't have ready for.

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Seven of those toy barns have a loft with just a bathroom.

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Seven of those toy barns have a 472 square foot residence within the unsightly story.

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That has gone through a public hearing preliminary site plan review.

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We're waiting for the developer to come back and offer us some information about some of the requests that we have on that project.

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The next one is really another interesting project.

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What makes it really interesting is it's rural.

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part of it is in Geneva Township, part of it is in Sausage, in the township, it will have its own private

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subject, subject, and sewer system built on the private land. There are a total of 15 rental

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units on this property, 20 storage units, more toy farms, 30 RV sites, and 80 camping sites.

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Again, this has gone through preliminary public hearing and we're waiting for our back

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from the developer on the request that we had in this program.

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Next, I'm going to spend just a couple of minutes talking about master plan considerations.

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We are working on that right now. We're working with the same firm for the city used.

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And we've had several meetings including an open house back in May.

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we've done a survey. What we're seeing so far is population has been

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steady and continues to show a slight growth pattern. More than a third of the

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timeshift residents are between ages 50 and 69 and the median age is increased.

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South Haven and Township may have a need for additional assistive living

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skill nursing and senior living. If you know what it was, senior living, assistive

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is living a project in the township approved and built

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or looks within the last year.

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And that is a beautiful facility.

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And I guess it's another one that you would consider

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housing for seniors.

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Developmental pressure in the township is growing.

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There's no question about the number of requests

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that we're getting.

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And so we're being cautious, very cautious about working

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on a master plan in such a way that we

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We encourage certain types of housing, but we also want to preserve the rural nature of the township to the extent possible.

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Let's talk a little bit about affordable, attainable housing provisions.

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And this is really part of what is permitting these projects to take place to the township.

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First, we have a special use provision that provides for micro-housing developments in the township.

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The micro housing development is between 5 and 10 acres, it's served by water and sewer.

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The maximum square footage of any house built is 600 feet square feet and there are no

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opportunities for additions to that home.

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So you're maxed out at 600 feet square feet, you can build less.

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the main level has to be at least 12 by 24, 280 square feet so you can go on in each unit must have two part of the spaces.

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The next provision that most people are not aware of, that's unique to South David Township as opposed to your zoning partners in the city,

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is all of our zoning districts permit multifamily due to places to family residences

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in township, and that is creating some opportunities for us to begin to look at, perhaps expanding

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that even, into four plexes, Ryan has shared some really good information with us, and

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many of these are very attractive, and they tend to fit well into rural areas, so we think

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opportunity is already there but we're looking at densities and height limitations of those as well

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we want to make sure to grow up in the opportunity possible. The next one I wanted to share with you

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with us will be the last one is the public utility residential overlay district. This is a new

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district in the last two years. What it does it reduces the lot size down to 16600 square feet,

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66 feet minimum on a roadway. It must be served by water and sewer and so these are really areas where

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they're underdeveloped, water and sewer is available and the opportunity is there for us to

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improve some smaller lives, smaller residences as well. So that's a quick overview of what's happening in the

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And with that, Kate will turn it over.

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Do I have to get it done environment?

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Good, thank you.

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All right, thank you so much Mark.

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And at this time, I think we'll ask Ryan,

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we'll pack it, come on up, and talk about our detail housing plant

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for the city of Southgate and Southgate for sure.

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As you know, Ryan has been a consultant here with the city

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for some time.

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He has had a vast experience with housing,

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working with, I think, any U.C.,

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another housing that has something on it.

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So he has a pretty big history,

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and is well known for its efforts in housing, so with that,

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I'll bring them back.

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Can I use this?

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Thank you so much.

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Yeah.

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Is that a little bit?

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Yeah.

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Thanks.

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Oh, sorry.

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You guys were pulling that up.

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Great.

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So thanks, everybody, for coming out tonight.

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It's a gorgeous evening.

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And you chose to spend it here with us.

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So, appreciate you doing that.

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Again, my name's Ryan Chilpatrick.

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I have a little consulting firm called Flywheel.

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Our goal is really to work with local communities to help build momentum around their vision.

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So our intention is to really spend a lot of time in the community, understand where

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you're headed, work towards incremental progress, but those incremental games turn into big momentum

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over time.

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So we've been working with the city of South Haven for quite a while, a couple of years

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and I'm really thrilled that we've got more South Haven charter township members and residents here tonight.

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I think you all need to be applauded for working together collaboratively as a region.

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One of the things that's really important to keep in mind is that most residents of a community

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don't care very much about the political boundaries.

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What they're really thinking about is, do I have access to jobs and do I have access to good schools?

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can I get where I need to go, and can I afford where I'm going to live?

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And so those are the things that people are really thinking about,

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and if there's a better housing opportunity on the other side of

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a political boundary, most people will take it.

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So the fact that you're working together is really important.

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Okay, I've stalled long enough that this is okay.

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Talked about what flywheel is.

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Oh, can we adjust this?

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Yeah, let me work on it.

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Do I need to pull the screen down a little bit?

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No, it's, okay, they're lacking a program

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that makes it work better.

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Got it, okay.

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So housing is regional.

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Housing is also highly indicative

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of the regional workforce, right?

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So I'll talk a little bit about this today,

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in your housing plan.

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Some of our interventions that we recommend

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are really specific to housing related strategies.

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But a couple of the recommendations are really specific to workforce development because all new housing is going to have a minimum price, right?

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There's the cost of construction doesn't get below a certain threshold. Right now, we're seeing average costs around $220 a square foot to build new residential housing in West Michigan.

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And so the township should be commended for allowing the tiny home village 600 square feet

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and less.

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So that's easily bringing the price of that housing down.

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But there's still a certain floor there.

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And so when you have households that are earning less than $25,000 a year,

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what we really need to focus on is workforce development.

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Is how do we get those households connected to higher paying jobs?

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or where they have a disability or they're aging seniors, how we get them connected to the

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federal benefits that are available. So it looks like we're up.

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To kind of level set baseline

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expectations, some of the things that are really important to keep in mind is that our current

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The housing market is plagued by these three shortages. We have a shortage of land available for the types of housing that are needed in our communities. There's no shortage of land, right? We are still the great American open space community. There's lots of land available. But land that has access to infrastructure and that is zoned to allow for the types of housing that people can afford today is highly limited.

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And I'm not particularly picking on South Haven or South Haven township across the state of Michigan.

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A roughly 78% of all residentally-zoned land is owned for single-family only on lots

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that are a quarter of an acre or larger.

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So when we have to start with a quarter acre log and we can only build single-family homes.

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Again, when we know that we have to spend $220 a square foot for any residential product,

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we automatically are setting the floor on the cost of the house.

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So the second shortage is labor and materials.

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Since the Great Recession, almost half of our Michigan labor workforce in the construction

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trades have either migrated south or into other employment opportunities.

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We didn't get all of those residential contractors back after they left in 2010 and 2012.

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In 2018, 2019, 2020, we had significant material shortages, partly due to COVID, partly due to tariffs, partly due to a really blooming housing industry that wasn't really expected at the time.

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And then lastly, the thing that we've been talking about a lot for the last year is rising interest rates, which means we have a shortage of available capital

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to build the kind of a residential product that we need.

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So there are constraints, right?

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I'm not here to promise you an easy path forward,

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but I am here to promise you

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the incremental steps that should work.

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So in light of those shortages,

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even before we started to experience shortages,

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what this graph is trying to depict,

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there's read it like a comic book, right?

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Left to right and then top to bottom.

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These are starter home sales.

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You can see 1999 to 2006. We were up at about 350,000 nationwide on an annual basis and

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then fell off a cliff in late 2006, early-tech 2007. Again, that was the mortgage crisis.

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Those mortgage-backed securities, the financial scheme that really failed in 2007 had a huge impact

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on starter homes. And at that time, starter homes were typically homes that were priced

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around $150,000, maybe $175,000.

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They used to make up about 42% of the overall housing

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construction in the marketplace.

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It then dropped down to about 17%

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of the overall housing construction in the marketplace.

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So if we think about, if we used to build almost half

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of the new housing was for young families

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that were just coming up, or first time home buyers

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who were just entering the housing market,

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price very affordably for the middle class if we stop that if that amount of

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housing declined by more than half we begin to understand what has happened

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over the ensuing 12 years right now all of those middle income households who

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could have afforded that $150 to $175,000 loan are forced to continue renting

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because there aren't other good options in the marketplace and because they're

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forced to continue renting but they earn enough to potentially buy a house just

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not a super expensive house. They're now crowding out our middle and lower income renters.

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And so what then happens is those lowest income renters get crowded out of the market entirely,

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which means they're forced to double up with other renters, they're forced to double up with

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family or they're pushed out of the community. And oftentimes it's those lower income workers who

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are essential workers, our grocery store clerks, the folks who are cleaning every place,

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keeping us clean especially during pandemics, those really important people, our nurses,

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age, our preschool teachers, all of these folks starting less than $18 to $20 an hour

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are getting squeezed out of the marketplace. And it's largely due to the fact that in 2006 and

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2007 we stopped making starter homes one of the largest product commodities in the housing

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market.

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So this slide, I'm going to skip it because it just repeats what I just said for

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the most part. So what we have done is we created a housing plan but embedded in this housing

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plan is a housing needs assessment where we looked at the census data, the changes in census

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data from 2010 to 2022. You'll actually find in the report when you read it most of the census

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data is 2011 to 2021 because those of the years we have the best most consistent data across

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census years there is an acknowledgement that the population of the township has gone up between

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2021 and 2022 and yet you'll see most of our data is rooted in the 2021 calculations so quick

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to caveat so in that plan we've made a series of recommendations and we've made those recommendations

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based on household income so there are different solutions depending on a household's income

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to the extent possible we want to encourage people to move toward homeownership but as I said

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there's a minimum cost to get into homeownership. We don't want to push people into that too soon

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when they don't have dollars available for maintenance or taxes or insurance. So some of the solutions

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are early on are more rental product and then as people gain more income we want to make sure

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that those runs on the economic ladder of opportunity are low enough that they can get on the ladder

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and start building equity and wealth over time. So tonight I'm going to give you a high level

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overview. The full document is available I think should be posted online later on this evening.

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There's also a little teaser document, a flyer that is kind of a one-page summary

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in infographic form that will be available for all of you. But real quickly we're looking at both

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city of township and all of Sally and charter township as our study area. We did include casco

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township in this one, maybe sometime in the future we'll kind of expand north or south or east.

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But for today, I think this is going to be really helpful.

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If you've looked at the census data, you will have noticed that the population across

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the South Haven community, both city and township, has declined among most of our generational

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cohorts, except for our baby boomers, baby boomers are up.

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And our youngest generation, generation alpha, and these are our kids.

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These are typically kids under 15 years old.

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So they actually grew by 100% over the last 11 years.

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Interesting, given that our millennials and Gen Z have declined.

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So I think that there was a number of years there where we had families

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where their kids were growing up and growing up and moving out of the house.

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Actually just watched this happen in my neighborhood.

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When I moved into our neighborhood, I think it was 2016.

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And I was my wife and I were almost the youngest couple in the neighborhood.

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at the time our boys were nine and five.

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And over the last five or six years,

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we've become one of the older couples, weirdly enough,

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right, I'm in my mid-40s.

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And suddenly I feel like the old guy on the block.

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And it's because a lot of the older generation

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that had lived in our neighborhood

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have decided that we're moving to Florida or Arizona

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or maybe South Haven.

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And so there's lots of younger Gen Z and millennials

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who are moving in.

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And so I can see how my neighbor could probably look similar to this community being that the oldest generation has moved out.

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We've got some younger families moving in and lots of those younger families are having kids.

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So what we'll start to see is recommendations specifically for that baby boomer generation.

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But also recommendations to be thinking about how we bring millennials and Gen Z into town because that's your workforce.

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course, that's the future of the employment base in the community.

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And then as was mentioned by Mark earlier, median age across the two communities is 56

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years old compared to Van Vieren County, which is just 40, it's like 40.7 years old, so

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we rounded up.

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Okay, so the other important thing is we're thinking about housing stock is what is the size

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of the household in the community, where's our average household size?

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And we talked about this in previous presentations and it turns out it bears out actually quite in alignment with state and national numbers here.

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You're roughly a third, a third, a third.

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27% of all households in the South Island community are one adult, no kids.

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37% are two adults, no kids at home.

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And mind you, this is no kids at home.

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So remember all those baby boomers whose kids have grown up and moved out of the house.

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They have kids, they just don't live in the classroom.

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Another, a little over a third, are households with kids.

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So, as we start to think about,

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what are our housing solutions for these households?

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A third are households should be oriented towards kids, right?

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Families and kids in the school district,

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and maybe we can even grow this to be closer to 40%

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if that's a goal for the community.

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But it's probably not going to be more than half

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of your community, as families with kids.

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And so as we think about what are the housing types that are most appropriate for the demographic groups in the community,

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you probably don't need a ton of single family homes on large lots.

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There are definitely people who prefer single family homes on large lots.

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It's an important part of the marketplace and the ecosystem and where there's demand.

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We want to satisfy demand.

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But I think you're also going to find a lot of demand for smaller homes,

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A lot of demand for attached homes, sometimes demand for stacked flats for condominiums closer to the walkable amenities.

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So what we really want to be thinking about is how do we serve all three of these groups well?

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Because for the most part in Michigan and in most of the US, we've really focused all of our housing attention on this group.

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We are kind of stuck in the 1950s mentality that everybody is a nuclear family, mom, dad,

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two kids and a dog, and everybody wants that suburban dream of, you know, white pick

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offense and a nice house with a two-star garage.

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And I think many people are still aspiring to that, and it's an important product.

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But it's not the only thing that we should be building.

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And to illustrate that, it's not the only thing that you're building here.

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South Haven community compared to the Van Buren County community at large.

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You've got greater diversity of housing product in South Haven than Van Buren as a whole.

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So as a whole Van Buren County's housing product is 78% single-family detached,

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whereas the South Haven community is only 64% single-family detached.

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So you're already in moving in the right direction.

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I think finding more ways to build in more opportunity of housing choice in diversity

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is going to be valuable, but kudos to you for already being creative and innovative in your

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housing solutions. Now this graph even though the bars look the same, now what we're talking about

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is housing 10-year, meaning is it owner occupied or rent or occupied. In South Haven about 67 and a half

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percent of all households are owner occupied, whereas about 33 percent are rent or occupied.

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In

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And this is important because I think for a long time we have maybe over-mythologized

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home ownership, it's a really important opportunity for people who want to be

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homeowners. And I think being able to build wealth in your home is definitely

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something that should be available to as many households as possible. And there

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are maintenance obligations that come with home ownership. There are cultural

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obligations that come with homeownership. There are time-oriented obligations that come with

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homeownership. And not everybody wants or needs to be a homeowner. If we look at how

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things appreciate over time, if you were to invest the same $20,000 either into a down payment on a home

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or in the stock market, you will see a much what's the word I want. In the stock market, you're

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see dips and valleys on a greater basis, right? And it's less likely than in a home that

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you will always see growth. But over time, over a 30-year investment horizon, you end up

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at close to the same place if you continue to invest in a stock market than the way that

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you invest in your home. And that's not to advocate for one or the other. It's just to say that

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people can build wealth if they're making the same kinds of investments year after year after

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year after year. In other financial vehicles, as opposed to always making your only investment

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in your own. I spend a lot of money trying to keep up my yard and replace the driveway

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and my windows need to be repaired. I've got a 92 year old house. And so to me, it doesn't

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always feel like, gosh, is this the best place for me to be putting all my money? Know that

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some people don't want to be owners. And the reason this graph is important is because

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because I think sometimes communities set goals where they say, hey, we don't ever want

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to fall below 60% when we're occupied housing.

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And I think the more appropriate goal, I think what we're actually trying to drive towards

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is the number of people who take great care and pride in their neighborhood.

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We don't ever want fewer than 80% of households to take great care and pride in their neighborhood.

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And oftentimes, home ownership is a proxy for that metric.

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And the real question is how do we get more renters to take great care and pride in their neighborhood?

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How do we build a cultural expectation that, hey, we're going to really care for this place together collaboratively as a community?

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And oftentimes that's done through a partnership but it doesn't have to be.

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Oh, so this graph is illustrating the number of households who are cost-brewed.

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It's showing you how many households are spending more than 30% of their income on a house.

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Now, 30% is kind of a rough metric.

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Some families can afford to spend 40% of their income on housing.

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It would be just fine.

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Some families, when they get over 20, 22% of their income on housing gets to be really sticky.

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Nationally, the federal standard is more than 30% of your income on housing is cost overburdened.

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Guys like Dave Ramsey tend to say the same thing. Your mortgage broker probably says, hey, we don't really lend to folks that are spending more than 28, 30, 35% of income on housing.

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So, it's a fairly standard metric. But what you can see here is our renters tend to be more cost burden than our homeowners. So, plus one another ownership category.

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When we look at in Bearing County, we have fewer households to our cost burden than South Haven.

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And so this is illustrating what you already knew, is that housing prices have gone up more quickly in South Haven than they have in Bearing County as a whole.

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And middle and low income households are struggling more in South Haven than they are in Bearing County as a whole.

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We'll talk a little bit about that going forward.

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Now, the other thing here is vacancy rate, and this is going to be a fun way, it'll be

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interesting to talk through this.

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So the total vacancy rate, depending on how we calculate it, is 30 and a half percent,

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however, the way the Census Bureau thinks about vacancy is any home that is not occupied

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year-round.

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00:31:16,700 --> 00:31:23,980
And so, when we think about second homes, and when we think about RV parks, and when we

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think about all of the other places campgrounds, all of those things are considered vacant,

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00:31:29,240 --> 00:31:33,400
if they're not occupied your rent, but they are considered housing, they're included

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in the tally of total housing stock.

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00:31:36,340 --> 00:31:43,340
So even though 30% feels like a giant number, when we go down, when we eliminate vacation

401
00:31:43,340 --> 00:31:48,200
homes, either second homes or seasonal rentals, the vacancy rate is actually 8.6 percent across

402
00:31:48,200 --> 00:31:56,520
the community. Your effective vacancy rate is about 6.2 percent. So now this is still compared

403
00:31:56,520 --> 00:32:03,520
to a lot of other communities that are high demand scarce housing neighborhoods or communities.

404
00:32:04,040 --> 00:32:10,400
6.2 percent is still a somewhat high number, right? What that tells me is there is opportunity

405
00:32:10,400 --> 00:32:15,420
to go find some of those vacant homes, figure out who the homeowners are.

406
00:32:15,700 --> 00:32:18,380
It's probably in the absentee landlord that decided,

407
00:32:18,920 --> 00:32:20,940
oh, it's not really worth renting this thing out anymore,

408
00:32:21,440 --> 00:32:23,300
or maybe they got an inspection and realized,

409
00:32:23,480 --> 00:32:25,200
gosh, I need to invest a bunch of money in that,

410
00:32:25,380 --> 00:32:27,140
I'm just going to let it sit vacant for a while.

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00:32:28,360 --> 00:32:31,100
I think there's going to be an opportunity to start to explore

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00:32:31,100 --> 00:32:34,500
what are some of those vacancies that are non-seasonal non-second homeowners,

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00:32:35,180 --> 00:32:37,100
and how do we get those back on the market,

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00:32:37,100 --> 00:32:43,470
especially for our low and middle income household income distribution.

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00:32:43,670 --> 00:32:45,510
This is another interesting one for the community.

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When we compare to Van Buren County, the overall share of households earning less

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00:32:51,590 --> 00:32:55,190
than $50,000 in South Hayden is greater than Van Buren County.

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00:32:56,130 --> 00:33:01,990
But our combined households earning $100,000 a year or more as a percentage

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00:33:01,990 --> 00:33:03,750
is more than Van Buren County.

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00:33:03,750 --> 00:33:09,490
So you've got sort of a barbell in South Haven where you've got a greater number of high

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00:33:09,490 --> 00:33:15,310
wealth, high income households and a greater number of low, well, low income households.

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00:33:16,350 --> 00:33:18,970
And you all experience this all the time, right?

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00:33:19,170 --> 00:33:24,650
We can see the income inequality in South Haven more readily than we see in other communities

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because of that wealth differential and proximity.

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00:33:30,230 --> 00:33:36,730
So then, if we really just look at the cost burden by price point, we can start to see

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how many households who can afford a housing payment of $250 a month or less.

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00:33:43,430 --> 00:33:45,690
We've got 324 of those households.

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00:33:46,230 --> 00:33:48,410
These are basically zero income households.

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00:33:49,430 --> 00:33:54,390
So think about an individual who's on social security benefits is probably over the age

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00:33:54,390 --> 00:33:59,610
of 65 is on Medicaid or Medicare, unable to work, right?

431
00:33:59,830 --> 00:34:01,430
These are those households more than likely.

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00:34:02,390 --> 00:34:05,150
300 households, who can afford rent or mortgage

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00:34:05,150 --> 00:34:10,470
of 250 to 500, and so this is 500 to 850 to 1250.

434
00:34:10,990 --> 00:34:13,230
This is what helps us understand, all right,

435
00:34:13,630 --> 00:34:17,030
if we were gonna try to solve for our housing equation tomorrow,

436
00:34:18,070 --> 00:34:20,050
where do we need the most housing

437
00:34:20,050 --> 00:34:21,770
and what kind of housing do we need?

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00:34:21,770 --> 00:34:25,030
This is a snapshot in time of what we would need today.

439
00:34:25,870 --> 00:34:29,550
So we'll talk a little bit about what all those numbers look like.

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00:34:30,310 --> 00:34:34,770
But in the meantime, this actually, this should have been the previous to the last slide.

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00:34:35,390 --> 00:34:38,590
This comes from a company called AirDNA.

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00:34:39,490 --> 00:34:46,370
AirDNA scrapes data from Airbnb, VRBO, a couple of other short-term rental missing agencies.

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00:34:47,070 --> 00:34:49,030
And it compiles it all into one place.

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00:34:49,030 --> 00:34:54,830
so that we get a pretty good picture of how many short-term rentals do we have in the community?

445
00:34:55,490 --> 00:34:59,770
How much revenue gets created? How many unique stays do we have?

446
00:34:59,990 --> 00:35:05,110
What's our peak listing count? You can see peak listing count of a third line and it says 921.

447
00:35:06,170 --> 00:35:13,170
The greatest number of listings on any day ever in the South Haven community was 921.

448
00:35:13,170 --> 00:35:20,290
total units. And that creates a market place of more than $50 million a year. Right? So the good

449
00:35:20,290 --> 00:35:26,490
news is you've got $50 million a year being spent on short-term rentals. And that's adding to

450
00:35:26,490 --> 00:35:33,190
the local economy. The bad news is on any given night you could have as many as 900,000 units that

451
00:35:33,190 --> 00:35:39,630
are occupied by one of these people who are contributing $50 million to the community. So there is no good or

452
00:35:39,630 --> 00:35:44,530
bad here, right? We're not going to villainize short-term rentals. We're also not going to

453
00:35:44,530 --> 00:35:49,290
praise them. They add value to the community and they create problems, right? And so what

454
00:35:49,290 --> 00:35:54,290
we have to do is understand where do the supply and demand mechanics that are at work here?

455
00:35:54,630 --> 00:35:58,390
We have a lot of people that want to be in South Haven for five months out of the year.

456
00:35:59,210 --> 00:36:02,610
And then we've got another whole group of people that want to be in South Haven for 12 months

457
00:36:02,610 --> 00:36:09,030
out of the year. And we've got to figure out, in part of the issue here, many of you know

458
00:36:09,030 --> 00:36:16,010
this better than I do, is 10 years ago before Airbnb and VRBO existed, it was a lot harder

459
00:36:16,010 --> 00:36:22,250
to rent a house out on a 90 basis. Today, I could log on, make a profile for my own house,

460
00:36:22,710 --> 00:36:28,070
stick it up on Airbnb, and I might get a rent or tomorrow. It's gotten super easy to

461
00:36:28,070 --> 00:36:32,430
do that. Some people might say, hey, I'm just going to rent my house out for three weeks

462
00:36:32,430 --> 00:36:38,430
because I'm going to be traveling the other way. That's a great tool, honestly, if you're

463
00:36:38,430 --> 00:36:42,530
a homeowner on a fixed income and you're like I just want to make a few grand while I'm

464
00:36:42,530 --> 00:36:46,330
away and then I'm going to actually live in my house for the rest of the year.

465
00:36:47,410 --> 00:36:51,150
But there are other folks who are using the market to their advantage.

466
00:36:51,350 --> 00:36:55,450
They don't live here full-time, who knows where they do live but they have a property here

467
00:36:55,450 --> 00:36:59,970
that they're making a lot of money off of and it's reducing the availability of housing

468
00:36:59,970 --> 00:37:01,810
supply for folks who want to live here year round.

469
00:37:02,730 --> 00:37:07,810
And so we've got to figure out solutions to that that balance the economic benefit with

470
00:37:07,810 --> 00:37:13,230
the social costs. And so a lot of conversation has to be had. There's no easy solution.

471
00:37:15,110 --> 00:37:20,630
So when we think about our overall housing needs today, if we're going to solve for those

472
00:37:20,630 --> 00:37:26,790
needs, our current affordable housing needs, meaning housing that has to be subsidized in some way

473
00:37:26,790 --> 00:37:32,530
because the cost to create it is greater than what the renters or homeowners can afford.

474
00:37:33,530 --> 00:37:37,190
A little over a thousand units between the city and the township would be needed.

475
00:37:38,470 --> 00:37:41,190
Average price would be about $850 a month.

476
00:37:41,710 --> 00:37:45,090
Some of those units would need to rent for less, some would rent for a little more.

477
00:37:46,830 --> 00:37:53,490
In order to do that, we would need a typical subsidy of between $60,000, $75,000 per rental unit.

478
00:37:53,690 --> 00:37:58,770
Or if it was homeownership, it would probably need to be more, more like $120,000, $120,000, $150,000.

479
00:37:59,930 --> 00:38:03,370
So, this starts to just, like, break this down into easy math.

480
00:38:04,550 --> 00:38:10,170
Very often I'll go to communities where they'll say, gosh, we need a whole lot more housing,

481
00:38:10,490 --> 00:38:13,730
but it has to be affordable. We don't want more housing if it's not affordable.

482
00:38:14,610 --> 00:38:20,150
And I feel for that argument, I want to be on that team and say, we don't want more housing if it's not affordable,

483
00:38:21,330 --> 00:38:24,830
but somebody has to come up with the 60 to 75,000 dollar subsidy.

484
00:38:25,490 --> 00:38:29,970
Right now the federal government has some programs, there's the low income housing tax credit,

485
00:38:30,430 --> 00:38:36,370
there's affordable housing voucher programs, there's HUD financing them to the 221D program.

486
00:38:36,830 --> 00:38:41,950
There are tools out there, but the federal government puts them in a big square box, right?

487
00:38:42,090 --> 00:38:45,470
You have to follow their rules, you have to comply with all of their regulations.

488
00:38:46,310 --> 00:38:52,510
In many instances it works very well, but it's always the same size box that needs to be

489
00:38:52,510 --> 00:38:57,150
fit on different size properties and in different flavored neighborhoods.

490
00:38:58,130 --> 00:39:01,870
And so sometimes that kind of product makes a ton of sense.

491
00:39:02,190 --> 00:39:06,690
We can go get the federal tax credits, we can get the federal loan programs and it works

492
00:39:06,690 --> 00:39:07,270
really well.

493
00:39:07,770 --> 00:39:09,450
Other times it doesn't make as much sense.

494
00:39:09,970 --> 00:39:14,050
And so we need to be able to communicate with constituents who say, hey, we want the housing

495
00:39:14,050 --> 00:39:15,870
but it needs to be more affordable than that.

496
00:39:16,730 --> 00:39:20,030
Somebody has to show up with that subsidy in order to make it more affordable.

497
00:39:20,030 --> 00:39:23,790
We can't just say, hey, developer, will you take a loss on this one?

498
00:39:24,450 --> 00:39:26,310
I don't know any builders or developers.

499
00:39:26,530 --> 00:39:34,950
Frankly, I don't know any business owners are entrepreneurs who will say, sure, I'll build it and lose 30% on the product.

500
00:39:36,650 --> 00:39:44,310
A quick side note here, 92% of the housing stock in the United States is privately owned and privately funded.

501
00:39:45,210 --> 00:39:50,870
I think there's a strong argument to say we need more federal funding for affordable housing.

502
00:39:51,550 --> 00:39:55,130
I would say we also need more flexible federal funding for affordable housing.

503
00:39:55,950 --> 00:40:02,110
But keep in mind that 92% of our housing stock is financed and constructed by the private sector.

504
00:40:02,550 --> 00:40:04,010
It is an entrepreneurial business.

505
00:40:04,010 --> 00:40:09,470
And so again, we're not always going to be able to find somebody who wants to underwrite

506
00:40:09,470 --> 00:40:13,590
the cost to subsidize affordable housing if we're not using one of those state or federal

507
00:40:13,590 --> 00:40:14,030
programs.

508
00:40:15,110 --> 00:40:18,210
That was a long diatribe, thank you for sitting through it.

509
00:40:19,650 --> 00:40:26,250
So if you wanted to use federal financing resources, the tax credit program is the simplest

510
00:40:26,250 --> 00:40:34,890
to use. Often times you typically want 40 to 60 residential units in order to make the tax credit

511
00:40:34,890 --> 00:40:41,950
process worthwhile for the investors who make the tax credit program actually work. So usually five

512
00:40:41,950 --> 00:40:48,090
acres is about the minimum property size, unless we're downtown, unless we can compete for the

513
00:40:48,090 --> 00:40:53,310
really competitive 9% life tech program, then you don't need anywhere near that one city bridge. But

514
00:40:53,310 --> 00:40:55,270
but if we're out of the neighborhood or in the township

515
00:40:55,270 --> 00:40:57,910
using the less competitive program, we need more acreage.

516
00:40:59,450 --> 00:41:00,850
A tenable housing.

517
00:41:01,530 --> 00:41:04,690
Now, a tenable housing has this ever elusive definition

518
00:41:04,690 --> 00:41:07,010
where we love to talk about it as a euphemism,

519
00:41:07,590 --> 00:41:09,050
but we don't clearly define it.

520
00:41:09,670 --> 00:41:13,650
I like to define it as housing that is affordable to households

521
00:41:13,650 --> 00:41:18,230
and be earning between 60% and 120% of the median income.

522
00:41:19,110 --> 00:41:22,190
So think about your middle income resident,

523
00:41:22,190 --> 00:41:27,710
which is typically in Van Buren County, somebody who earns about $55,000, $56,000 a year.

524
00:41:28,970 --> 00:41:33,970
If we take 60% of that, we're probably looking at $35,000 a year if my math is close.

525
00:41:34,610 --> 00:41:40,110
If we take 120% of that, we're probably looking at $68,000 to $70,000 a year.

526
00:41:40,790 --> 00:41:45,590
So if we're going to try to serve households earning between $35,000 and $75,000 a year,

527
00:41:45,850 --> 00:41:48,190
I'm going to say they need a attainable house.

528
00:41:48,190 --> 00:41:51,950
doesn't need to be subsidized and affordable, but it's got to be attainable.

529
00:41:52,530 --> 00:41:56,630
In order to do that, it's still possible to do that with private sector,

530
00:41:56,930 --> 00:42:01,770
entrepreneurial, business oriented, construction companies and developers.

531
00:42:02,310 --> 00:42:05,350
You need today, if we were to solve today, you need about

532
00:42:06,350 --> 00:42:09,010
370 new attainable housing units.

533
00:42:09,590 --> 00:42:14,650
Those would be priced in the $1,000 a month to $1,400 a month price range.

534
00:42:14,650 --> 00:42:24,430
It could go higher, right? We've got some attainable households who can afford up to $1,800 a month, but that feels a little bit out of balance for South Haven in this moment.

535
00:42:25,470 --> 00:42:36,190
What it requires is a little bit more flexible zoning, probably less parking. Keep in mind that parking consumed land is expensive, especially in a community with high demand.

536
00:42:37,570 --> 00:42:42,590
And don't forget, roughly a third of households in the community are single adults, no kids.

537
00:42:43,250 --> 00:42:46,730
So not every apartment unit needs two parking spaces.

538
00:42:47,250 --> 00:42:50,070
A lot of your apartment units will only need one parking space.

539
00:42:50,710 --> 00:42:53,410
Same is true for smaller houses, those little cottages.

540
00:42:53,910 --> 00:42:55,710
Many of them will only need one parking space.

541
00:42:57,190 --> 00:43:00,650
But thinking about infrastructure that accommodates visitor parking,

542
00:43:00,910 --> 00:43:04,550
overflow parking, right? How do we do parking on-street in some instances?

543
00:43:04,870 --> 00:43:08,190
How do we have a little grass lot maybe that is overflow parking?

544
00:43:08,190 --> 00:43:13,470
those things make a ton of sense. But to build a parking space, just an

545
00:43:13,470 --> 00:43:18,250
asphalt parking space is typically about 8 to 10 thousand dollars per space. So

546
00:43:18,250 --> 00:43:23,390
know that for every parking space you require your adding cost. The other

547
00:43:23,390 --> 00:43:28,670
opportunity we talk about this in the plan is an impact investment fund. And we

548
00:43:28,670 --> 00:43:33,450
haven't explored this yet in South Haven, but I think considering who are some of our

549
00:43:33,450 --> 00:43:40,150
top employers do they have a significant housing need? Do they make annual

550
00:43:40,990 --> 00:43:46,150
philanthropic or impact investments? And if all of those things are true, would

551
00:43:46,150 --> 00:43:50,330
they be willing to make an impact investment into a fund? And what that means

552
00:43:50,330 --> 00:43:57,510
is they could invest through a CDFI fiduciary at a low interest return

553
00:43:57,510 --> 00:44:02,490
expectation to allow financing for the kinds of attainable housing we need for

554
00:44:02,490 --> 00:44:08,730
the workforce at a much lower cost of capital. So to break that down even more, if I'm a developer

555
00:44:08,730 --> 00:44:13,770
and I go get a commercial loan today, I'm going to spend probably six and a half, seven percent

556
00:44:13,770 --> 00:44:18,430
on the commercial loan. So at six and a half to seven percent on everything that I borrow

557
00:44:18,430 --> 00:44:23,210
for the entire period that I borrow it, it's going to be tens of thousands, if not hundreds of

558
00:44:23,210 --> 00:44:29,870
thousands of dollars of additional costs to finance. If I have impact investors that say, hey, we'll

559
00:44:29,870 --> 00:44:34,950
participate in this deal with a loan through fiduciary it's going to guarantee it and we'll

560
00:44:34,950 --> 00:44:41,930
come into that loan for an agreed return of 2%. You take the administrative fees in addition

561
00:44:41,930 --> 00:44:48,510
to that now we're talking 2.5 maybe 3% debt. The difference between 6.5% or 7% debt and 3%

562
00:44:48,510 --> 00:44:53,750
debt is significant over a 10 year period of time especially when we're talking about a 10

563
00:44:53,750 --> 00:44:59,970
to $30 million deal, right? Think about $20 million financed at 6% versus financed at 3%.

564
00:45:01,060 --> 00:45:16,500
So, we have opportunities. We want to start talking to some of those larger employers who might want to help solve for this. Now, we talked in the beginning about starter homes and how many starter homes we didn't build and how many we need to build.

565
00:45:18,940 --> 00:45:30,440
At the top, I've underlined and italicized at least. So, given today's data and the cost to build a starter home in today's market, knowing that we probably can't

566
00:45:30,440 --> 00:45:34,060
feasibly build a starter home for less than $225,000,

567
00:45:34,260 --> 00:45:35,800
just because of the cost of construction.

568
00:45:37,220 --> 00:45:40,900
Given these numbers, our data says you probably need

569
00:45:40,900 --> 00:45:43,340
at least 83 starter homes in order to satisfy

570
00:45:43,340 --> 00:45:44,200
current market demand.

571
00:45:45,080 --> 00:45:47,360
I think it's probably a lot higher, right?

572
00:45:47,500 --> 00:45:49,680
I think what you're probably experiencing right now

573
00:45:49,680 --> 00:45:52,640
is a lot of your workforce can't currently afford

574
00:45:52,640 --> 00:45:54,520
to live in the South Haven community,

575
00:45:54,860 --> 00:45:56,000
and so they're driving in.

576
00:45:57,060 --> 00:45:59,120
And so if we spent a lot of time looking at

577
00:45:59,120 --> 00:46:04,620
the existing workforce and where they're commuting from, this member could probably triple

578
00:46:04,620 --> 00:46:09,140
or quadruple pretty easily, but it wasn't readily available in a census date.

579
00:46:10,580 --> 00:46:17,480
So the idea here is, how do we allow for more compact homes, attached homes in some instances,

580
00:46:17,700 --> 00:46:22,480
as I mentioned, condominiums, townhouses, stack flats, all of the things, right?

581
00:46:23,000 --> 00:46:27,010
It's got to be context sensitive, it's got to have access to infrastructure and be in the

582
00:46:27,010 --> 00:46:31,270
places, honestly, it doesn't ever need to be super tall, right?

583
00:46:31,470 --> 00:46:34,890
Maybe downtown, supporting taller buildings is a great idea.

584
00:46:35,470 --> 00:46:37,730
But every place else, two or three story buildings

585
00:46:37,730 --> 00:46:38,950
are as tall as you need to go.

586
00:46:39,470 --> 00:46:42,130
They can be very much in character with your existing neighborhoods.

587
00:46:42,450 --> 00:46:44,030
And I'll show you some examples of how that can.

588
00:46:45,950 --> 00:46:49,290
So in the future, I just shared with you

589
00:46:49,290 --> 00:46:50,630
what are your current housing needs.

590
00:46:51,150 --> 00:46:53,510
In the future, you're going to continue

591
00:46:53,510 --> 00:46:55,350
to have growth in the baby boomers sector.

592
00:46:56,010 --> 00:46:58,370
You're also going to find all those baby boomers

593
00:46:58,370 --> 00:47:00,230
that are here today, love it, and they want to stay,

594
00:47:00,750 --> 00:47:02,830
and they're going to become others, right?

595
00:47:03,010 --> 00:47:04,270
Over the next 10 or 15 years,

596
00:47:04,270 --> 00:47:05,850
we're going to be needing to think about

597
00:47:05,850 --> 00:47:07,350
senior housing opportunities.

598
00:47:08,310 --> 00:47:11,750
And I'll bet you, if my parents and my grandparents

599
00:47:11,750 --> 00:47:13,550
are any indicator, they're not going

600
00:47:13,550 --> 00:47:15,530
to want the same assisted living options

601
00:47:16,150 --> 00:47:18,170
that my grandparents took advantage of

602
00:47:18,170 --> 00:47:19,790
and that their parents took advantage of.

603
00:47:20,430 --> 00:47:22,230
They're going to want a more independent lifestyle.

604
00:47:22,890 --> 00:47:24,090
They're going to want more privacy.

605
00:47:24,710 --> 00:47:26,130
They're going to want more activity.

606
00:47:26,130 --> 00:47:30,730
So thinking through senior housing options that are more ingrained in the community,

607
00:47:31,190 --> 00:47:35,510
rather than isolated out off the highway, thinking about senior housing opportunities

608
00:47:35,510 --> 00:47:40,690
where they can be ingrained in the downtown or ingrained in neighborhoods with access to nature,

609
00:47:41,270 --> 00:47:44,270
those are going to be really important elements for senior housing going forward.

610
00:47:45,610 --> 00:47:48,290
But then we've also got this critical element of our workforce.

611
00:47:48,590 --> 00:47:53,070
Our teachers, our firefighters, our nurses, all of those folks who are earning

612
00:47:53,070 --> 00:47:59,530
great middle class wages but can't afford to stay in the community right now in order to grow the

613
00:47:59,530 --> 00:48:04,010
economy and even keep the economy stable making sure that we've got housing options for those folks

614
00:48:04,010 --> 00:48:11,690
as well. So our housing plan elements, the three S's and this is borrowed from an author Shane Phillips

615
00:48:11,690 --> 00:48:17,490
who wrote a book called The Affordable City. There's like 122 proposed strategies that you can mix

616
00:48:17,490 --> 00:48:23,990
and match, always recommended this book. Stability, supply, and subsidies. We've got to recognize

617
00:48:23,990 --> 00:48:30,130
on the front end that our housing commendium right now is based on scarcity. And while we have

618
00:48:30,130 --> 00:48:33,710
scarcity, we've got to be thinking about how do we keep those households who are vulnerable,

619
00:48:34,230 --> 00:48:40,590
stable. And so that's things like your nonprofits, the Salvation Army, Habitat for Humanity,

620
00:48:40,730 --> 00:48:45,430
Goodwill Industries, all of those organizations help to keep residents stable. We've got to continue

621
00:48:45,430 --> 00:48:50,250
to make philanthropic investments there so that we don't lose households because they're

622
00:48:50,250 --> 00:48:56,750
being priced out. But we simultaneously have to build supply. You're clearly short on

623
00:48:56,750 --> 00:49:02,550
supply today by at least a thousand units probably more since we're not factoring in the workforce

624
00:49:02,550 --> 00:49:08,270
that doesn't live here. And in some instances we've got to explore how to use those subsidies

625
00:49:08,270 --> 00:49:13,970
to your advantage. It's got to, again, be context appropriate. You've got to think about which

626
00:49:13,970 --> 00:49:15,550
which subsidies work in which environments,

627
00:49:15,850 --> 00:49:17,770
and how are we optimizing those subsidies

628
00:49:17,770 --> 00:49:20,450
to satisfy the desires and the needs of the community?

629
00:49:21,330 --> 00:49:22,930
But those three things together

630
00:49:23,310 --> 00:49:25,630
make up an equitable housing environment.

631
00:49:27,130 --> 00:49:29,590
So as we talk about things that you have local control

632
00:49:29,590 --> 00:49:33,230
over zoning and economic development inside of policies,

633
00:49:33,430 --> 00:49:35,510
these are the things that should be relatively easy

634
00:49:35,510 --> 00:49:36,830
to do in a short period of time.

635
00:49:37,450 --> 00:49:41,010
Thinking about narrower minimum lot with area standards.

636
00:49:41,890 --> 00:49:46,090
There's also a lot of financial importance to a lot withs.

637
00:49:46,810 --> 00:49:49,950
So especially in the neighborhood that are served by public infrastructure,

638
00:49:49,990 --> 00:49:56,310
I wanted to think about when the local municipality gets pricing to install new infrastructure.

639
00:49:57,270 --> 00:49:59,630
They get pricing based on the linear foot.

640
00:50:00,530 --> 00:50:03,750
So for every linear foot of pipe that goes in the ground,

641
00:50:03,750 --> 00:50:08,450
and every linear foot of asphalt that gets laid, the cost goes up.

642
00:50:08,450 --> 00:50:12,930
right? That's how the contractors are going to build it. And so for every linear

643
00:50:12,930 --> 00:50:17,630
foot that you require in lot with, the cost of your infrastructure goes up.

644
00:50:19,030 --> 00:50:23,950
Depending on who's financing the infrastructure, that might add a lot of

645
00:50:23,950 --> 00:50:28,730
costs to the homeowner, or it might add a lot of cost to the municipality when it

646
00:50:28,730 --> 00:50:32,810
comes time to replace that infrastructure. When you've got to repave the road, or

647
00:50:32,810 --> 00:50:36,630
when you've got to rip out all of that old sewer because it's now 50 or 80 years old,

648
00:50:37,510 --> 00:50:45,690
Those minimum lockwood standards essentially dictate how much you've got to spend on a per-home basis to replace that infrastructure.

649
00:50:46,410 --> 00:50:54,350
So, as a thought experiment, think about it, if we've got 100 feet of infrastructure, and you say we've got a 70 foot minimum lockwood,

650
00:50:54,930 --> 00:50:59,490
well, we're going to get 1.3 homes per 100 feet of infrastructure.

651
00:51:00,170 --> 00:51:08,810
But if instead, and so if that home on one 70-foot lot with, if that home is valued at $350,000,

652
00:51:09,090 --> 00:51:16,330
we need enough tax increment from that home to pay for all 70 feet of infrastructure that they're using.

653
00:51:17,170 --> 00:51:25,030
Whereas if we have homes that have a 40-foot lot with requirement, suddenly we can get 2.2 homes per 100 feet.

654
00:51:25,030 --> 00:51:31,370
And now, each of those homes, which are probably still valued close to $300,000, they're going

655
00:51:31,370 --> 00:51:38,090
to net more tax revenue than your 70-foot lock width on a linear-foot basis, right?

656
00:51:38,470 --> 00:51:42,170
So that was a super-long way of me trying to explain that when you have narrower lock

657
00:51:42,170 --> 00:51:44,030
widths, it's actually easier to pay for your infrastructure.

658
00:51:45,950 --> 00:51:49,590
It gets even better when we attach things, right, when we do townhouses.

659
00:51:49,590 --> 00:51:56,190
Now, when we do townhouses or duplexes or fourplexes, design standards are important.

660
00:51:57,870 --> 00:52:05,210
Looking at any duplex from the early 1970s through the mid-1980s, we built a lot of

661
00:52:05,210 --> 00:52:06,490
bad duplexes.

662
00:52:06,990 --> 00:52:11,130
You can go all over Michigan on a bad duplex hunt and find a ton of them.

663
00:52:11,930 --> 00:52:17,610
But it wasn't because it's a bad product type, it wasn't because those aren't good opportunities

664
00:52:17,610 --> 00:52:23,790
for housing. It was because we were sort of in this area where design wasn't a huge

665
00:52:23,790 --> 00:52:29,750
stop consideration. And so if we make design a big part of the thought consideration and

666
00:52:29,750 --> 00:52:35,570
we don't, we don't make design overly burdensome, but we do think about simple, proud structures

667
00:52:35,570 --> 00:52:40,970
with good façades, they're compatible with neighborhood character. We can build a lot

668
00:52:40,970 --> 00:52:45,410
of good housing products that is affordable. And we've got to think about usable community

669
00:52:45,410 --> 00:52:50,070
degree space. Not everybody needs a big backyard, a lot of us like big

670
00:52:50,070 --> 00:52:54,690
backyards, but if we don't have a big backyard, where is the community

671
00:52:54,690 --> 00:53:00,990
backyard? Also, keep in mind, not every development has to have their own

672
00:53:00,990 --> 00:53:05,950
community backyard. Sometimes we can have a park that's down the street or around

673
00:53:05,950 --> 00:53:09,710
the corner that can serve as the green space for the development. And so

674
00:53:09,710 --> 00:53:13,770
sometimes we'll have lots that are going to develop a majority of the lot

675
00:53:13,770 --> 00:53:15,490
between the housing and the parking.

676
00:53:16,230 --> 00:53:18,970
As long as there is good adequate green space nearby,

677
00:53:19,350 --> 00:53:20,110
that can be okay.

678
00:53:20,810 --> 00:53:22,230
In other instances you're gonna say,

679
00:53:22,370 --> 00:53:23,870
actually no, there's not a good

680
00:53:23,870 --> 00:53:25,130
adequate green space nearby.

681
00:53:25,470 --> 00:53:27,950
You've got to integrate usable green space into the development.

682
00:53:28,450 --> 00:53:29,610
It's context sensitive.

683
00:53:31,010 --> 00:53:33,510
So this is one of my favorite examples to use.

684
00:53:33,950 --> 00:53:36,590
I think it's a great building technology.

685
00:53:37,250 --> 00:53:38,350
This is actually a fourplex.

686
00:53:38,850 --> 00:53:40,210
This has four apartments in it.

687
00:53:41,070 --> 00:53:44,630
This is about a 950 square foot one bedroom apartment.

688
00:53:45,150 --> 00:53:49,490
On the other side, it's about a 980 square foot two bedroom apartment,

689
00:53:49,790 --> 00:53:52,070
and then you get a mirror image upstairs.

690
00:53:53,690 --> 00:53:56,710
From the street, you would never know, right?

691
00:53:56,890 --> 00:54:00,030
From the street, this blends in beautifully in most neighborhoods.

692
00:54:00,370 --> 00:54:03,570
I would gladly have this across the street for me and look at it every day.

693
00:54:05,170 --> 00:54:09,910
This kind of housing product, this can cost a little bit more than

694
00:54:09,910 --> 00:54:13,910
a traditional single-family house, the most expensive things in a house are

695
00:54:13,910 --> 00:54:17,170
kitchens and bathrooms. So we're going to have more kitchens and bathrooms in

696
00:54:17,170 --> 00:54:20,470
this than we would have in a traditional single-family house. But otherwise

697
00:54:20,470 --> 00:54:27,830
the cost is relatively on par. So if we could build that for, let's say, $455,000.

698
00:54:28,450 --> 00:54:33,130
But we can get four households living there, four smaller households mind you

699
00:54:33,130 --> 00:54:37,130
because most of our households are single adults or two adults with no kids.

700
00:54:39,370 --> 00:54:39,890
You

701
00:54:39,890 --> 00:54:41,790
and then a couple of singles and couples.

702
00:54:42,810 --> 00:54:45,730
This consumes a lot less space, a lot less infrastructure.

703
00:54:45,730 --> 00:54:46,710
It's more affordable.

704
00:54:47,170 --> 00:54:48,630
There are all kinds of benefits

705
00:54:48,630 --> 00:54:50,470
to allowing this kind of housing technology.

706
00:54:51,410 --> 00:54:53,730
The more we can make it easy to build this,

707
00:54:53,870 --> 00:54:54,170
the better.

708
00:54:54,910 --> 00:54:57,170
Again, good quality design standards.

709
00:54:57,870 --> 00:54:59,930
Some communities that we're talking to now

710
00:54:59,930 --> 00:55:01,890
in the Michigan Municipalities promoting this

711
00:55:01,890 --> 00:55:04,570
are adopting pattern books, where they say,

712
00:55:04,790 --> 00:55:06,350
hey, if you built this exact thing,

713
00:55:06,550 --> 00:55:07,290
we'll permanent tomorrow.

714
00:55:07,770 --> 00:55:13,650
Right? They essentially will hand you this plan. They'll say, build this, we like it. You can build it tomorrow.

715
00:55:13,790 --> 00:55:18,250
You don't have to go through a special land use process. You don't have to go through six months of the administrative zoning review.

716
00:55:18,770 --> 00:55:20,670
We've already decided that we like it. You can build it.

717
00:55:21,410 --> 00:55:22,950
During more of that is valuable.

718
00:55:23,990 --> 00:55:25,290
These are other examples.

719
00:55:26,210 --> 00:55:36,410
The note being that roughly half of the housing market today will pay more for less square footage if it's in a walkable amenity rich environment.

720
00:55:37,030 --> 00:55:42,770
We have a lot of people that are really hungry for small town charm, and it just so happens

721
00:55:42,770 --> 00:55:44,630
that Saturday that's full of small town charm.

722
00:55:45,570 --> 00:55:49,390
And so thinking about how do we create more neighborhoods that are walkable, a metady

723
00:55:49,390 --> 00:55:56,170
rich, that are compact, that allow people to be closer together, and closer to the things

724
00:55:56,170 --> 00:56:00,310
that they really value, which are probably going to be things like downtown, the schools,

725
00:56:00,550 --> 00:56:06,090
the libraries, the lakeshore, the more opportunities to be close to those things we can build into

726
00:56:06,090 --> 00:56:10,730
the neighborhoods that are. Smaller cottages, these are sometimes called cottage

727
00:56:10,730 --> 00:56:16,470
cords or pocket neighborhoods. These fit great in rural environments. There's

728
00:56:16,470 --> 00:56:20,970
one of these in the Sleeping Bear Dunes Lakeshore area in the village of

729
00:56:20,970 --> 00:56:26,670
Empire that is on a shared community septic system that actually sits underneath

730
00:56:26,670 --> 00:56:30,710
the green space, right? So instead of everybody having their own drainfield, they

731
00:56:30,710 --> 00:56:35,510
have one larger drainfield. But these are smaller cottages, they're not your typical

732
00:56:35,510 --> 00:56:43,990
1500 to 2500 square foot house, they're closer to that 850 to maybe 1400 square feet, meaning they're more efficient.

733
00:56:44,470 --> 00:56:51,310
There's less land costs, shared community green space, but you can see here's the thing that's really important that sometimes gets overlooked.

734
00:56:52,330 --> 00:57:04,290
Everybody here has this beautiful little sitting porch, which allows them to have kind of this permeable space that is semi-public, semi-private in between their home and that green space.

735
00:57:04,730 --> 00:57:10,330
So, it allows you to kind of look out and watch the grandkids or the kids who might be playing

736
00:57:10,330 --> 00:57:15,130
in the green space to see your neighbor, but also to be back a little bit from that shared

737
00:57:15,130 --> 00:57:15,670
green space.

738
00:57:15,970 --> 00:57:19,530
So, when you want to be seen and kind of out in the open, you're out in your yard or you're

739
00:57:19,530 --> 00:57:23,330
out in the green space, what you just want to enjoy your neighbor and having that covered,

740
00:57:23,830 --> 00:57:27,790
semi enclosed porch is a really important element to be weaving into these kinds.

741
00:57:29,750 --> 00:57:31,370
The other one is accessory dwelling units.

742
00:57:31,370 --> 00:57:37,470
These are really important opportunities to be thinking about for homeowners that are

743
00:57:37,470 --> 00:57:41,930
trying to take advantage of opportunities to generate a little bit of passive rental

744
00:57:41,930 --> 00:57:42,490
income.

745
00:57:43,190 --> 00:57:47,910
There are some households that can just barely afford to live in the community but can

746
00:57:47,910 --> 00:57:54,690
almost do it and if we give them the opportunity for that passive rental income they can actually

747
00:57:54,690 --> 00:57:56,070
afford to live in the community.

748
00:57:56,070 --> 00:58:02,190
And then, when we think about all of the young teachers and firefighters and police officers

749
00:58:02,190 --> 00:58:07,830
and nurses who were trying to attract into the community and who just need a simple one

750
00:58:07,830 --> 00:58:11,950
bedroom apartment, either above the garage or next to the garage, and they're not going

751
00:58:11,950 --> 00:58:16,370
to live there for 25 years, but they might live there for two years while they get a foothold

752
00:58:16,370 --> 00:58:19,550
while they establish their career, while they think about what's their next move.

753
00:58:20,150 --> 00:58:24,750
They may get married in the meantime and move into a single-family house or an apartment down

754
00:58:24,750 --> 00:58:30,910
industry, but these are great options for young adults to be able to move into that can cost

755
00:58:30,910 --> 00:58:32,590
a well under a thousand dollars a month.

756
00:58:34,610 --> 00:58:38,730
And then again, multi-family can be great. Lots

757
00:58:38,730 --> 00:58:43,970
of valuable attributes to multi-family. This is a great design. It's a company called

758
00:58:43,970 --> 00:58:50,570
Humphries and Partners that does a lot of these in the Texas market around Austin and Dallas.

759
00:58:51,210 --> 00:58:55,830
They're doing more and more nationally. We're seeing good products like this now creeping

760
00:58:55,830 --> 00:59:02,430
up into the Midwest. And so thinking about when we're allowing for multi-family, what are

761
00:59:02,430 --> 00:59:06,110
our expectations? How does it relate to the public realm? How does it relate to the street?

762
00:59:06,590 --> 00:59:11,810
How does it integrate into the fabric in the neighborhood? And some instances this isn't as important

763
00:59:11,810 --> 00:59:16,950
because you don't have a built up neighborhood that's already close by. And so the multi-family

764
00:59:16,950 --> 00:59:21,570
development can kind of set the new pattern. But in instances where you already have kind of

765
00:59:21,570 --> 00:59:25,730
residential character, thinking about what are our design standards and how do we expect

766
00:59:25,730 --> 00:59:29,950
this development to integrate into the design of the community. That can be an important

767
00:59:29,950 --> 00:59:30,630
thing to think about.

768
00:59:32,330 --> 00:59:32,810
Can

769
00:59:38,280 --> 00:59:39,500
you advance this? Almost

770
00:59:46,350 --> 00:59:50,010
wrapped up here. This is a case study. This is a development

771
00:59:50,010 --> 00:59:56,370
project that we've completed in the city of Grand Haven. A number of important things, I

772
00:59:56,370 --> 00:59:58,030
I don't want to start with our price point.

773
00:59:58,750 --> 00:59:59,970
So, this was...

774
01:00:00,000 --> 01:00:29,980
This was built and we started working on it in 2019 just before the pandemic, so I couldn't repeat those prices today. But we could get not too far from that. So if you're in all the way back, these are single family detached homes that we priced starting in $139,000 up to $290,000. This was an extraordinary partnership between the City of Grand Haven, Ottawa County, Land Bank Authority, the Grand Haven Brownfield Authority, a nonprofit developer called Michigan.

775
01:00:29,980 --> 01:00:35,880
community capital in housing next. And essentially what we did, the city said hey we've got six acres,

776
01:00:36,100 --> 01:00:40,340
it's over near the airport, it's been zoned industrial for a long time but there's residential

777
01:00:40,340 --> 01:00:45,000
on one side, there's a blueberry field on the other side. We think maybe housing can go there?

778
01:00:45,900 --> 01:00:52,120
And we said yes, housing can go there. And so we called up a friend at Michigan Community Capital,

779
01:00:52,340 --> 01:00:57,000
which is a nonprofit developer based out of Lansing, we said hey help us design a neighborhood.

780
01:00:57,560 --> 01:00:59,560
And we looked at a number of configurations.

781
01:00:59,920 --> 01:01:02,140
I was heavily advocating, hey, let's do lots of different

782
01:01:02,140 --> 01:01:02,660
building types.

783
01:01:02,860 --> 01:01:04,880
Let's do little cottages and most two townhouses.

784
01:01:05,480 --> 01:01:07,140
And they said, we love your thinking,

785
01:01:07,500 --> 01:01:09,340
but we just want to prove that we can do this

786
01:01:09,340 --> 01:01:10,580
because we've never done it before.

787
01:01:11,120 --> 01:01:12,340
So they said, let's start simple.

788
01:01:12,500 --> 01:01:15,200
We're just going to do basic single family homes.

789
01:01:15,840 --> 01:01:19,220
The smallest home in this neighborhood is 900 meters square feet.

790
01:01:19,800 --> 01:01:22,580
The largest home is 1,150 square feet.

791
01:01:23,640 --> 01:01:25,760
So the small one is too bad to run back.

792
01:01:25,760 --> 01:01:32,560
the largest is three beds to that. 30 single-family homes in total and what we did

793
01:01:32,560 --> 01:01:36,700
this was at the behest of the city of Grand Haven because they essentially gave

794
01:01:36,700 --> 01:01:41,060
the land away. The land was probably worth half a million dollars and they

795
01:01:41,060 --> 01:01:46,380
sold it to the development entity for 30,000. Because they did that they said hey we

796
01:01:46,380 --> 01:01:50,460
want this to be affordable for a long time, right? It's great to build it for

797
01:01:50,460 --> 01:01:55,600
$139,000 but if the first home owner lives there for a year and then puts it on the

798
01:01:55,600 --> 01:02:01,000
market for 250, we kind of lost the value of all of our property and didn't get a

799
01:02:01,000 --> 01:02:06,420
affordability as a result. So we created a community land trust. We spent about

800
01:02:06,420 --> 01:02:10,380
six months doing all the research that we could to understand how

801
01:02:10,380 --> 01:02:13,840
community land trust should be formed, what they should look like, create some great

802
01:02:13,840 --> 01:02:18,180
volunteer help from a couple of retired interns in town. The community land

803
01:02:18,180 --> 01:02:23,560
trust owns the underlying land. And essentially what they do is they have a long

804
01:02:23,560 --> 01:02:26,140
long-term lease agreement with each individual homeowner.

805
01:02:26,600 --> 01:02:30,200
The homeowner pays a dollar for their lease to have the home on the land.

806
01:02:30,860 --> 01:02:33,000
They have a traditional mortgage for the house.

807
01:02:33,560 --> 01:02:34,940
Nothing changes about the house.

808
01:02:35,060 --> 01:02:36,460
They just don't own the underlying land.

809
01:02:37,220 --> 01:02:41,860
But when the homeowner goes to sell the house, essentially what happens is the land trust

810
01:02:41,860 --> 01:02:45,740
buys the house, and then they sell the house to the next buyer.

811
01:02:46,580 --> 01:02:51,760
And what that does is it allows the subsidy that was put into the land to begin with to remain

812
01:02:51,760 --> 01:02:52,580
in the land.

813
01:02:52,580 --> 01:02:58,620
So, for as long as these homes exist, and for as long as the community land trust exists,

814
01:02:59,340 --> 01:03:04,160
that land subsidy will continue to run with the project, and will continue to subsidize

815
01:03:04,160 --> 01:03:06,020
those homes long into the future.

816
01:03:06,880 --> 01:03:11,760
But the benefit is, the homeowner gets to take the equity that they build in the home

817
01:03:12,220 --> 01:03:13,240
when they sell the house.

818
01:03:13,780 --> 01:03:20,360
So if they buy it for $139, and then it sells for $189, they still earn some equity.

819
01:03:21,160 --> 01:03:26,540
But there is no land value basis in that, so likely, and I'll tell you, in Grant Haven

820
01:03:26,540 --> 01:03:31,900
right now, the lowest home value that I have seen available on the market is $480,000,

821
01:03:31,900 --> 01:03:32,740
maybe $5,000.

822
01:03:33,360 --> 01:03:35,560
And that's where an older house that means a lot of work.

823
01:03:36,160 --> 01:03:42,200
So these folks, if it were a free market enterprise, they could probably turn around and flip these

824
01:03:42,200 --> 01:03:43,560
for $400,000 more.

825
01:03:44,180 --> 01:03:48,160
But the land trust ensures that they're going to remain relatively close to what they were

826
01:03:48,160 --> 01:03:49,000
originally sold for.

827
01:03:49,000 --> 01:03:52,700
while still allowing for some of that equity appreciation to go with them.

828
01:03:54,620 --> 01:03:58,360
All right, so now we're talking tools. What can we actually do about this?

829
01:03:59,020 --> 01:04:02,320
This is the list of tools that you have in your toolbox at the local level.

830
01:04:02,860 --> 01:04:04,400
We've got tax increment financing,

831
01:04:04,640 --> 01:04:08,340
labor and enterprise-owned residential facilities exemptions. That's a new one.

832
01:04:08,460 --> 01:04:10,520
We just created that with the legislature last year.

833
01:04:11,220 --> 01:04:14,400
You can use your publicly owned land. You can create land trusts

834
01:04:14,400 --> 01:04:16,180
or just impose D restrictions.

835
01:04:16,820 --> 01:04:19,420
And you can use those state and federal financial programs.

836
01:04:20,380 --> 01:04:24,300
I'm going through these quickly because they each could take an hour to explain if we

837
01:04:24,300 --> 01:04:25,820
really wanted to get into the weeds.

838
01:04:26,600 --> 01:04:30,820
So we'll definitely have follow-up for things that are interesting to all of you if you

839
01:04:30,820 --> 01:04:33,340
want to get more into the weeds, I'm more than happy to come back.

840
01:04:35,080 --> 01:04:37,600
So how do we actually make the math work?

841
01:04:37,800 --> 01:04:42,760
And I say for the middle class, because that's where the market still is possible, right?

842
01:04:43,300 --> 01:04:47,200
Making the math work for our low and moderate income households, as I mentioned, requires

843
01:04:47,200 --> 01:04:52,920
We just have to accept, we're not going to go to affordability for low income households without deep subsidies.

844
01:04:53,400 --> 01:04:59,840
And so, where that makes sense for all of you, we're willing to run the distance to ensure that those subsidies are available.

845
01:05:00,460 --> 01:05:08,000
But just getting the market to work for the middle class means we've got to recognize that housing scarcity is what's driving housing prices up.

846
01:05:08,580 --> 01:05:12,800
And so we've got to find more ways to get more supply into the marketplace.

847
01:05:12,800 --> 01:05:16,920
and use some of your tools, tax payment financing to subsidize the

848
01:05:16,920 --> 01:05:21,700
infrastructure costs is a great way. And those time-limited D

849
01:05:21,700 --> 01:05:25,820
restrictions are completely land trusts to ensure that when you are

850
01:05:25,820 --> 01:05:30,940
allowing public dollars to go into a deal, you're getting as much value out of that

851
01:05:30,940 --> 01:05:35,940
for as long as possible while not upsetting the apple car, right? It's got to make sense

852
01:05:35,940 --> 01:05:40,420
for the development entity to actually do the project, but you can also have clear

853
01:05:40,420 --> 01:05:44,260
expectations about how long do we want this to be affordable if we're going to put a bunch of taxing

854
01:05:44,260 --> 01:05:44,660
in the inventory.

855
01:05:47,040 --> 01:05:53,040
So what I'm recommending going forward is to first now that we kind of understand

856
01:05:53,040 --> 01:05:56,820
the data. We know we need to build at least a thousand more units between the township and the

857
01:05:56,820 --> 01:06:03,220
city to kind of catch up with where demand and supply are right now. Let's get clear on understanding

858
01:06:03,220 --> 01:06:08,300
the tools that are available, both in terms of zoning and economic development reform as well as the

859
01:06:08,300 --> 01:06:09,860
of the subsidies and the other programs

860
01:06:09,860 --> 01:06:11,240
that are available to offset costs.

861
01:06:12,640 --> 01:06:15,020
Then we'll define which ones are most appropriate.

862
01:06:15,600 --> 01:06:17,440
The township might want to use different tools

863
01:06:17,440 --> 01:06:19,480
than the city, and that's going to be totally okay,

864
01:06:19,600 --> 01:06:20,860
because you have different contexts.

865
01:06:21,740 --> 01:06:24,000
And then we want to craft local policies

866
01:06:24,000 --> 01:06:25,740
to set guard rules, right?

867
01:06:25,920 --> 01:06:27,640
Because each of you as decision makers

868
01:06:28,160 --> 01:06:29,480
are going to say, hey, you know,

869
01:06:29,540 --> 01:06:30,700
we don't want this to get out of control.

870
01:06:30,860 --> 01:06:32,500
We can't give away all of our tax economy.

871
01:06:33,020 --> 01:06:35,040
We can't obey everybody's taxes all the time.

872
01:06:35,540 --> 01:06:39,740
We can't subsidize all of the housing and so we want to set clear targets.

873
01:06:40,140 --> 01:06:43,080
We want to say here's what we're willing to do for what?

874
01:06:43,300 --> 01:06:47,640
What is the public benefit that we're expecting to get out of the tools that we're willing to use?

875
01:06:48,360 --> 01:06:55,160
And put that in a policy so that even after you retire from your positions and you allow the next

876
01:06:56,480 --> 01:07:02,720
to take over. You have left a legacy not only of the ability to use the tools, but some

877
01:07:02,720 --> 01:07:04,420
guidance as to how they should be used.

878
01:07:06,600 --> 01:07:10,960
Lastly, this is a plug. I hope to draft a statewide

879
01:07:10,960 --> 01:07:16,060
zoning reform toolkit. There are 15 tools in the toolkit we did with the Michigan Association

880
01:07:16,060 --> 01:07:20,820
of Planning. These are all of the relatively simple things that you can do with your zoning

881
01:07:20,820 --> 01:07:25,520
code. And it probably doesn't make sense for any community to implement all 15 of these,

882
01:07:26,060 --> 01:07:30,820
but picking out five or six to do in specific neighborhoods where you feel like, yeah,

883
01:07:30,980 --> 01:07:34,940
we can reduce minimum lot sizes here, or we can allow two family by right, which by the

884
01:07:34,940 --> 01:07:40,320
way, I love that the Township Relay does that. I think that's great. It's a relatively simple

885
01:07:40,320 --> 01:07:45,760
guidebook to the extent that you want someone to help walk you through it. We've got a team

886
01:07:45,760 --> 01:07:49,440
who can come down and really talk through, okay, how do we actually implement this in

887
01:07:49,440 --> 01:07:56,000
York code here for this location. But beyond that, I would say I think we're ready for

888
01:07:56,000 --> 01:07:59,760
comment cards. If you haven't already started to fill out comment cards, I would do that.

889
01:08:00,460 --> 01:08:08,100
And then Kate, do you want to dismiss for a short bathroom break? Okay, so I think what

890
01:08:08,100 --> 01:08:13,780
we're going to do is five minutes if you need to get up and stretch or something else

891
01:08:13,780 --> 01:08:16,060
write down your questions or comments,

892
01:08:16,600 --> 01:08:18,920
and then a team of us will try to respond

893
01:08:19,420 --> 01:08:20,620
to any questions you may have.

894
01:08:41,190 --> 01:08:44,500
Nate, I'm going to also ask,

895
01:08:52,100 --> 01:08:53,200
I'd like to invite you to join me, sir.

896
01:08:53,720 --> 01:08:56,600
If you can come right up to this microphone here,

897
01:08:56,880 --> 01:08:59,160
we'll take your comment and it'll be recorded

898
01:08:59,160 --> 01:09:02,540
so we'll get you to comment on it on your team.

899
01:09:10,970 --> 01:09:11,810
Sorry, please, if I could.

900
01:09:12,130 --> 01:09:13,650
This microphone is directional,

901
01:09:13,850 --> 01:09:16,010
so if you can point it towards you,

902
01:09:16,350 --> 01:09:17,390
it will pick you up much better.

903
01:09:18,470 --> 01:09:19,650
This might be better.

904
01:09:23,840 --> 01:09:29,320
At least the VAC 879 Monroe Boulevard, I have two questions for you.

905
01:09:30,060 --> 01:09:39,280
One question is, you're saying there's a lot of one in two household families,

906
01:09:39,940 --> 01:09:43,560
and your name duplexes with four apartments, things like that.

907
01:09:43,560 --> 01:09:50,560
Is there any, I guess, what I'm asking is people limit, you know, with the Habitat funds since they were

908
01:09:51,600 --> 01:09:54,460
121 bedrooms, but the funding they couldn't have kids.

909
01:09:55,100 --> 01:09:59,060
So if they lived there and they had a kid, there was no place for them to move.

910
01:09:59,820 --> 01:10:04,100
So my question is, you know, I like the pictures of the 4D flexes and things like that.

911
01:10:04,560 --> 01:10:10,340
Is there any limit, you know, the one person where they get married or they have a kid, do they have to move?

912
01:10:10,340 --> 01:10:11,300
Great

913
01:10:14,380 --> 01:10:20,520
question. So there are code requirements and there are funding requirements and sometimes

914
01:10:20,520 --> 01:10:26,680
they overlap and sometimes they're different. So when the Habitat House national Habitat

915
01:10:26,680 --> 01:10:32,420
sets some specific standards that your local Habitat affiliates have to follow, related

916
01:10:32,420 --> 01:10:38,380
to ADA accessibility and occupants per unit and per structure. And part of the reason for

917
01:10:38,380 --> 01:10:41,660
that is they want to maintain a really solid reputation in their communities.

918
01:10:41,660 --> 01:10:48,220
So, at the local level, if you were to build a couple of one-bedroom units that were occupied

919
01:10:48,220 --> 01:10:54,000
by a single adult, who then became a single adult with child, there is no requirement

920
01:10:54,000 --> 01:10:57,500
that would say, well, now she's got to move out because she's got a child.

921
01:10:57,800 --> 01:11:03,340
The building code, the zoning code, doesn't regulate number of occupants per bedroom.

922
01:11:04,920 --> 01:11:11,560
However, most people would ultimately say, I'd really like my kid to have their own bedroom

923
01:11:11,560 --> 01:11:15,460
right, to have a nursery or something like that eventually, right?

924
01:11:16,820 --> 01:11:23,140
So you want to have, and this is the beauty of allowing for different housing types in the same neighborhood,

925
01:11:24,060 --> 01:11:29,620
is ideally, what we would do is have some duplexes, some single family homes,

926
01:11:30,140 --> 01:11:35,000
and maybe one or two smaller multi-unit buildings, all in the same neighborhood.

927
01:11:35,420 --> 01:11:38,620
So that if a young person does either get married or has a kid,

928
01:11:38,620 --> 01:11:39,660
and they say, you know what?

929
01:11:39,740 --> 01:11:41,800
I think I'm growing out of my one bedroom apartment.

930
01:11:42,340 --> 01:11:43,760
They don't have to move across town

931
01:11:44,320 --> 01:11:45,480
away from all of the neighbors

932
01:11:45,480 --> 01:11:47,540
and the community that we have encouraged them

933
01:11:47,540 --> 01:11:49,320
to create in the neighborhood that they've been.

934
01:11:50,180 --> 01:11:52,880
They can move right down the street into a townhouse

935
01:11:52,880 --> 01:11:55,940
or into a slightly larger two bedroom apartment in it.

936
01:11:56,300 --> 01:11:57,880
Or maybe even into the same building.

937
01:11:58,660 --> 01:12:00,540
So having that diversity of housing choices

938
01:12:00,540 --> 01:12:02,620
good for individual choice,

939
01:12:03,180 --> 01:12:05,480
but it's not mandated by the building code

940
01:12:05,480 --> 01:12:06,400
or by the zoning code.

941
01:12:07,940 --> 01:12:11,500
But then those other options is they have kids, they have kids.

942
01:12:13,230 --> 01:12:13,530
Yes.

943
01:12:14,230 --> 01:12:17,710
If their family says it goes up but their income stays the same,

944
01:12:18,290 --> 01:12:23,890
yes, like finding ways, okay, how do we make sure that you can afford the extra $250 a month for the other place?

945
01:12:24,230 --> 01:12:28,130
So that leads to my second question is on the trust,

946
01:12:28,830 --> 01:12:31,670
you said that they could make a profit, a reasonable profit.

947
01:12:32,110 --> 01:12:35,550
But how do you keep that piece of base on inflation?

948
01:12:35,550 --> 01:12:45,390
I don't have a conversation with one of the council members that said, well, it's based on inflation and maybe you make $10,000 and you say that for two years you might make $20,000.

949
01:12:45,930 --> 01:12:52,350
But is there a limit, you know, or in two or three years can they sell it for $500,000?

950
01:12:52,730 --> 01:13:00,370
Yeah. So the beauty of the land trust model is you set up a local board that will govern the land trust and how it works.

951
01:13:00,370 --> 01:13:07,290
And so, at the local level, you would decide how much equity you can be taken by the first

952
01:13:07,290 --> 01:13:07,730
homeowner.

953
01:13:08,270 --> 01:13:13,830
Is it a percentage of the sale, is it just adjusted for inflation, is it an inflation

954
01:13:13,830 --> 01:13:14,950
plus a percentage?

955
01:13:15,610 --> 01:13:20,270
You can make all those decisions at the local level, and you can adjust it over time.

956
01:13:20,970 --> 01:13:24,750
So you'll make a commitment to a homeowner, and that commitment will run with the land.

957
01:13:25,330 --> 01:13:28,770
But if you have new homeowners moving in, you say, I don't think we ought to form you

958
01:13:28,770 --> 01:13:28,910
on it.

959
01:13:28,910 --> 01:13:32,590
exactly right, and you want to have a basket for the next homeowner, you can do that.

960
01:13:33,010 --> 01:13:37,030
It's part of the bi-loss and the master deed within the association.

961
01:13:38,310 --> 01:13:43,330
So there are a number of ways to structure it, and there's always this delicate balance

962
01:13:43,330 --> 01:13:48,770
of trying to think about how do we allow households to build some equity so that ultimately when

963
01:13:48,770 --> 01:13:53,770
they do decide to sell, we want them to be able to move up and have a down payment for that

964
01:13:53,770 --> 01:13:56,390
and move up house, but not so much equity

965
01:13:56,390 --> 01:13:58,330
that we're undermining future affordability.

966
01:13:59,010 --> 01:13:59,610
Thank you.

967
01:14:01,050 --> 01:14:01,890
On the next step,

968
01:14:13,390 --> 01:14:14,950
the one you got is very easy.

969
01:14:15,170 --> 01:14:16,530
I know your voice is more powerful,

970
01:14:16,970 --> 01:14:19,870
but there's a difficult area to understand very, very difficult.

971
01:14:19,990 --> 01:14:21,910
They really, are they coming through here?

972
01:14:21,910 --> 01:14:23,410
Well, here, can you hear me?

973
01:14:23,850 --> 01:14:24,390
Yeah, you can.

974
01:14:24,530 --> 01:14:26,930
Ellen, if you have the closer to the megaphone,

975
01:14:27,150 --> 01:14:30,570
as there is, if you have the closer to the megaphone,

976
01:14:30,830 --> 01:14:32,670
the next is the one of the insdirectional.

977
01:14:32,830 --> 01:14:33,610
And also that one.

978
01:14:34,510 --> 01:14:37,270
There's also seats over here if you'd like to sit closer.

979
01:14:39,590 --> 01:14:41,870
So Mary Hasley, some of you sitting in the North Shore Drive.

980
01:14:42,550 --> 01:14:48,390
So one thing I've been asking since March of 2022, when MSU Extension came out with common

981
01:14:48,390 --> 01:14:53,030
terms, is to start using common terms and some of them were used and some of them are not.

982
01:14:53,290 --> 01:14:59,050
And I just think it would be very helpful to all have working in the same direction and

983
01:14:59,050 --> 01:14:59,710
understand

984
01:15:00,000 --> 01:15:11,420
So, you know, affordable is used frequently, and it is discretionary, it's 30% of your income. But subsidized housing, and I, my tax, has

985
01:15:11,420 --> 01:15:19,280
sprints of cash to it, and there are limitations. And it would, I think that that lack of clarity over the past three years has been

986
01:15:19,280 --> 01:15:29,680
detrimental to moving forward, and I would request that that be used. Also, especially in light of over 10, I would hope that we can at least agree that there are

987
01:15:29,680 --> 01:15:36,620
recommendations. I know that there's been representations in city council recently that have detected

988
01:15:36,620 --> 01:15:43,320
not re-applied because of mischievous having questions and that have a technical information. In fact,

989
01:15:43,340 --> 01:15:49,520
if we go back to May 2021, there's enough from our environmental consultant to Griffin Graham saying

990
01:15:49,520 --> 01:15:54,800
it would be proven for a habitat company to complete their due diligence including phase 20 ESA and

991
01:15:54,800 --> 01:15:58,940
a minimum B.E.A. and the City Council waived environmental

992
01:15:58,940 --> 01:16:03,500
and tax payment. So I think to move forward, we need to really be

993
01:16:05,560 --> 01:16:11,480
truthful and painfully clear about what are the issues, what do we need to get and not

994
01:16:11,480 --> 01:16:16,260
move with the car before the horse and make sure we have that information so we don't keep

995
01:16:16,260 --> 01:16:20,900
having hiccups and losing three years' worth of work and having to start back at ground

996
01:16:20,900 --> 01:16:21,260
zero.

997
01:16:25,400 --> 01:16:36,240
And also, you know, for future projects where we're accepting bids, if a bid is just

998
01:16:36,240 --> 01:16:42,080
a little bit late, like 12 hours, I would ask that that bid be presented to the committee

999
01:16:42,080 --> 01:16:48,040
to determine whether we should extend the bid as opposed to a unilateral decision by

1000
01:16:48,040 --> 01:16:53,880
sitting manager and supported by the consultant, whether to accept it or not.

1001
01:16:54,380 --> 01:16:56,880
It would be a much more open process. Thank you.

1002
01:16:57,780 --> 01:17:00,860
I do think it can answer the environmental impact statement.

1003
01:17:01,120 --> 01:17:03,160
They make right and you're very aware of what they are.

1004
01:17:03,400 --> 01:17:06,200
They do not actually talk about contamination issues.

1005
01:17:06,680 --> 01:17:09,960
Those are for your phase one, your phase two, and your BEA.

1006
01:17:10,380 --> 01:17:16,580
The environmental impact statement is more cohesive or more expensive than that.

1007
01:17:16,580 --> 01:17:19,820
and it talks about traffic patterns and talks about

1008
01:17:19,820 --> 01:17:21,540
impact alien local housing.

1009
01:17:22,000 --> 01:17:23,500
You've talked a little about what you've seen

1010
01:17:23,500 --> 01:17:24,900
with environmental impact statements.

1011
01:17:26,040 --> 01:17:29,720
Yeah, so the Mr. Required Environmental Impact Statement

1012
01:17:29,720 --> 01:17:32,760
is really about what will the impact of the project be

1013
01:17:32,760 --> 01:17:34,060
on the overall community?

1014
01:17:34,620 --> 01:17:36,980
And it's an opportunity for folks to weigh in and say,

1015
01:17:37,180 --> 01:17:39,040
gosh, can we handle the traffic?

1016
01:17:39,900 --> 01:17:42,420
Do we need to install another stoplight or stop sign?

1017
01:17:44,060 --> 01:17:46,140
Do we have enough space in our schools

1018
01:17:46,140 --> 01:17:48,260
to accommodate the kids who might live there, right?

1019
01:17:48,360 --> 01:17:51,180
It's a super broad review.

1020
01:17:52,180 --> 01:17:56,280
I would agree that ensuring we have a very complete

1021
01:17:56,280 --> 01:17:58,960
and accurate understanding of any contamination

1022
01:17:58,960 --> 01:18:00,840
and remediation that's necessary

1023
01:18:01,160 --> 01:18:03,660
is definitely important before commencing development.

1024
01:18:04,360 --> 01:18:06,140
But waving the environmental impact statement

1025
01:18:06,140 --> 01:18:08,420
isn't saying we don't care about contamination

1026
01:18:08,420 --> 01:18:10,360
and saying actually we don't think

1027
01:18:10,360 --> 01:18:12,960
that the development, once we've remediated

1028
01:18:12,960 --> 01:18:18,240
and any contamination will have a significant impact on things like traffic and schools in those kinds of things.

1029
01:18:20,120 --> 01:18:21,600
Chair, please say sir, third.

1030
01:18:22,520 --> 01:18:23,000
Stinger?

1031
01:18:28,360 --> 01:18:30,280
Information, I hope I'm talking loud enough.

1032
01:18:30,660 --> 01:18:30,760
No.

1033
01:18:31,300 --> 01:18:31,720
Loud enough?

1034
01:18:32,540 --> 01:18:32,680
Okay.

1035
01:18:33,060 --> 01:18:35,200
We can adjust the date of the money.

1036
01:18:35,920 --> 01:18:37,340
We can adjust the date of the money.

1037
01:18:37,520 --> 01:18:37,920
That's better.

1038
01:18:39,240 --> 01:18:45,380
A question that I'm asking someone sitting now, and a question asked by a lot of residents, especially when it's two weeks,

1039
01:18:45,980 --> 01:18:46,700
is the following.

1040
01:18:47,380 --> 01:18:53,880
short-term rentals. When the money gets paid to the owner of a short-term rental, how much

1041
01:18:53,880 --> 01:18:59,740
is that staying in town? So here's my question. You had a number of there, 53 million, I think.

1042
01:19:00,380 --> 01:19:06,700
Okay, now let me give you an example. Let's say you have a short-term rental owner who doesn't

1043
01:19:06,700 --> 01:19:13,940
live in this town and are economic development manager, Jim Hanger, told us over 50% of the owners

1044
01:19:13,940 --> 01:19:16,660
of short-term rentals who live outside the state.

1045
01:19:17,400 --> 01:19:20,840
So now you get hypothetically a $5,000 a week rent.

1046
01:19:21,480 --> 01:19:25,300
So $5,000, you said 30% roughly covers a cost.

1047
01:19:25,720 --> 01:19:28,920
So now you got $3,500 left for the owner.

1048
01:19:29,620 --> 01:19:33,400
But the owner is in Illinois or Indiana or wherever.

1049
01:19:34,380 --> 01:19:37,600
So is it fair to say, there's a question, I don't know.

1050
01:19:38,360 --> 01:19:41,220
Is it fair to say that $3,500 then doesn't say

1051
01:19:41,220 --> 01:19:45,080
the community, most of it, and it goes out because you have to go to another bank,

1052
01:19:45,280 --> 01:19:51,840
it goes to another committee, versus if it was a homeowner or a local owner of a rental

1053
01:19:51,840 --> 01:19:56,980
property who listens to that pay, then that money would most likely say that they were

1054
01:19:56,980 --> 01:20:01,180
deposited in a bank and spent, is that thinking correct or not?

1055
01:20:01,800 --> 01:20:04,780
I think that logic is accurate, yes.

1056
01:20:05,440 --> 01:20:08,420
I think that there are qualifiers everywhere, right?

1057
01:20:09,800 --> 01:20:15,020
So we have created local economies that are dependent on national chains where we're all

1058
01:20:15,020 --> 01:20:17,940
spending money that ends up going someplace else, right?

1059
01:20:19,020 --> 01:20:25,320
But generally, yes, roughly 30 to 40% of the revenue that comes in for short-term rentals

1060
01:20:25,320 --> 01:20:30,940
gets spent on cleaners and repairs and landscaping and all those kinds of things.

1061
01:20:30,940 --> 01:20:37,860
but the other 65% often goes to the owner.

1062
01:20:38,840 --> 01:20:46,160
Now, one of the things to be clear about is sometimes the property isn't paid for in cash

1063
01:20:46,700 --> 01:20:48,680
and so there's a bank intermediary.

1064
01:20:49,140 --> 01:20:55,080
And so a big chunk of that 60% that isn't going towards operating in maintenance could be going towards debt,

1065
01:20:55,080 --> 01:21:00,020
whether it's a local owner or it's out of state owner.

1066
01:21:00,960 --> 01:21:04,220
So this is a long way of saying we'd have to actually put

1067
01:21:04,220 --> 01:21:07,740
together a study to try to evaluate how much leakage is

1068
01:21:07,740 --> 01:21:11,060
in the economy in your short-term rental market compared

1069
01:21:11,060 --> 01:21:14,940
to if they were all owner occupied by folks who live locally.

1070
01:21:15,680 --> 01:21:18,840
But I think the direction of your logic is absolutely correct

1071
01:21:19,270 --> 01:21:23,440
that if out-of-town owners are owning and operating

1072
01:21:23,440 --> 01:21:28,060
short-term rentals, a majority of the rental income is not saying in the community.

1073
01:21:29,100 --> 01:21:30,000
Thank you so much.

1074
01:21:53,990 --> 01:21:57,770
You have to sweep up 614 baby animals out here.

1075
01:21:58,370 --> 01:22:00,110
I am here for seniors.

1076
01:22:01,210 --> 01:22:04,550
I have had so much compassion for seniors in many years.

1077
01:22:04,750 --> 01:22:05,650
I've worked with them.

1078
01:22:06,730 --> 01:22:12,470
I have seen we need more growth in South America for relief service.

1079
01:22:13,090 --> 01:22:21,990
What is happening, I have some dear crimes that they fall into the cracks, and they can't find

1080
01:22:21,990 --> 01:22:22,890
things in their housing.

1081
01:22:23,490 --> 01:22:28,970
And what happens is they've been born and raised to this area, and they want to continue

1082
01:22:28,970 --> 01:22:32,190
their life here, and they can't be anything else to move out.

1083
01:22:32,870 --> 01:22:33,750
And it's very sad.

1084
01:22:34,570 --> 01:22:41,150
And our seniors are being born and are coming up, seniors are living longer.

1085
01:22:41,150 --> 01:22:43,770
and they're all so weird active.

1086
01:22:44,370 --> 01:22:46,990
We have 70 and 80 people that are playing,

1087
01:22:47,190 --> 01:22:51,070
people ball, you know, and myself, me seeing them out.

1088
01:22:51,790 --> 01:22:55,230
I see this, and we need this so much in this area.

1089
01:22:55,990 --> 01:22:59,690
And I just, I just want this to happen,

1090
01:23:00,150 --> 01:23:01,670
and they really need it.

1091
01:23:02,070 --> 01:23:03,170
So thank you.

1092
01:23:07,800 --> 01:23:09,960
How are our escrow cards from Abram?

1093
01:23:09,960 --> 01:23:10,800
So

1094
01:23:16,280 --> 01:23:23,440
I just want to say something to township for being so proactive and putting the pedal

1095
01:23:23,440 --> 01:23:29,100
to the metal because this is just a huge step in the right direction.

1096
01:23:30,140 --> 01:23:37,580
You know, I've heard Brian speak before to come to these meetings and we see the screens

1097
01:23:37,580 --> 01:23:45,820
And the thing that we don't know about is the physics and putting a face on it.

1098
01:23:46,300 --> 01:23:50,980
If you stay out of the high school and you get a thorough soft wall across the street,

1099
01:23:51,500 --> 01:23:59,640
you're going to hit the house of a business owner in a self-haven who can barely afford her house.

1100
01:23:59,640 --> 01:24:04,240
So when I talked to her, I said, what do you afford?

1101
01:24:05,140 --> 01:24:09,020
And like your neighbor said, she said she could afford

1102
01:24:09,460 --> 01:24:14,120
a house for what she has to have $174,000,

1103
01:24:14,480 --> 01:24:17,880
or an apartment at about $700 a month.

1104
01:24:18,540 --> 01:24:22,660
So that's putting a face on this type of problem.

1105
01:24:23,100 --> 01:24:24,380
And it's bigger than a problem.

1106
01:24:24,680 --> 01:24:26,180
It is a crisis.

1107
01:24:27,880 --> 01:24:36,820
And I think that, you know, we're not emphasizing that we really need to be in crisis mode.

1108
01:24:40,800 --> 01:24:45,680
Recently, my arm of three kids had to leave her team.

1109
01:24:49,610 --> 01:24:59,530
That means her three kids are pulled out in her school district, which caused a loss of 25,000 dollars every year.

1110
01:24:59,530 --> 01:25:03,530
They're now moving to Bearing County, where are you out on Alzheimer's?

1111
01:25:08,420 --> 01:25:13,680
Because those visits, and I also speak for them on who could not be at the meeting tonight.

1112
01:25:14,340 --> 01:25:16,740
And she said, what about housing for bigger families?

1113
01:25:17,880 --> 01:25:20,200
And I know you are doing, you know, a few bedrooms.

1114
01:25:24,120 --> 01:25:26,800
Mistok Haven has three siblings.

1115
01:25:27,620 --> 01:25:30,340
So Mistok Haven has come from a family of six.

1116
01:25:31,080 --> 01:25:35,480
So there's a similar range of big families who need housing too.

1117
01:25:36,020 --> 01:25:44,940
So, thank you again and go self-paying the power ship and it's great to be working together. I really appreciate that.

1118
01:25:48,020 --> 01:25:55,940
Before I wrap it tonight, I wanted to talk a little bit, I had a round talk about some of the tools that have just recently been enacted before me for tonight.

1119
01:25:56,180 --> 01:26:03,000
And one of them is the Brownfield Law that is looking to be updated here shortly, hopefully, it's past the Senate.

1120
01:26:03,560 --> 01:26:05,760
And then you can also talk about neighborhood and immigrant cells.

1121
01:26:07,500 --> 01:26:24,700
Yes, so I've been part of an organization called the Housing Michigan Coalition, which includes the Home Builders Association and the Michigan Municipal League, the Grand Rapids Chamber Housing Next and Housing North, Housing North represents the Traverse City 10 County region.

1122
01:26:26,000 --> 01:26:32,860
Last fall, we got four pieces of legislation passed to include their residential facilities

1123
01:26:32,860 --> 01:26:37,740
exemption, which is a tax evading very similar to an industrial facilities exemption.

1124
01:26:38,400 --> 01:26:44,120
So where you have new rental housing that isn't federally or state subsidized, but you'd

1125
01:26:44,120 --> 01:26:49,820
still like to reduce the tax obligation in exchange for a reduction in the rental rates.

1126
01:26:50,380 --> 01:26:52,520
You can do that, both in the city and the township.

1127
01:26:52,520 --> 01:26:56,700
We also got a change passed to the Neighborhood Enterprise Zone program.

1128
01:26:57,240 --> 01:27:05,780
Previously, the Neighborhood Enterprise Zone was only available in communities that were defined as core communities under old legislation.

1129
01:27:06,440 --> 01:27:15,060
That legislation used communities' population from the 1990s to determine which communities were eligible for incentives today in 2023.

1130
01:27:16,060 --> 01:27:22,880
So we got that legislation changed, neighborhood residents are now available in all cities, villages, and townships.

1131
01:27:22,900 --> 01:27:25,680
They support both home ownership and rental product.

1132
01:27:26,180 --> 01:27:33,520
It allows a local community to provide up to a 15 year tax abatement that is equal to 50% of the tax obligation.

1133
01:27:34,400 --> 01:27:44,180
So when you're trying to incentivize new home ownership, it's one of the few tools that's available to offset their tax obligation to make the house a little bit more affordable.

1134
01:27:44,920 --> 01:27:50,700
The other tool that we have is the Brownfield Tax Agreement Finance Program.

1135
01:27:51,220 --> 01:27:52,920
That's been around since 1996.

1136
01:27:52,920 --> 01:27:54,980
It's been amended a number of times.

1137
01:27:55,580 --> 01:28:01,680
Typically, when it first started, it was only available to reimburse costs related to environmental remediation

1138
01:28:01,680 --> 01:28:05,480
or blight or buildings that needed to be demolished.

1139
01:28:05,900 --> 01:28:09,480
Over time, it's been expanded with more and more eligible activities.

1140
01:28:09,480 --> 01:28:13,620
and we have a proposal that has now passed the Senate.

1141
01:28:14,180 --> 01:28:15,540
It's gone through House Committee.

1142
01:28:15,680 --> 01:28:18,280
It should be on the floor of the House next week Tuesday.

1143
01:28:18,980 --> 01:28:22,640
That would allow for improvements to residential property for

1144
01:28:22,640 --> 01:28:25,980
affordable and workforce housing to be an eligible expense.

1145
01:28:26,760 --> 01:28:31,620
So what's really important about this is, as we think about building new housing,

1146
01:28:31,800 --> 01:28:34,780
whether it's apartments or single-family homes or cottages,

1147
01:28:34,780 --> 01:28:38,400
is the infrastructure associated with those homes

1148
01:28:38,400 --> 01:28:40,800
can be an eligible expense to be reimbursed.

1149
01:28:41,460 --> 01:28:45,780
So a good example is if we were to build a neighborhood,

1150
01:28:46,300 --> 01:28:47,860
the neighborhood I showed you, Robinson Landing

1151
01:28:47,860 --> 01:28:51,320
and Grand Haven had $1.2 million of infrastructure costs.

1152
01:28:52,120 --> 01:28:55,280
We didn't have to pass any of those costs onto the homeowners

1153
01:28:55,800 --> 01:28:57,440
because we financed them separately

1154
01:28:57,440 --> 01:29:00,020
and got a reimbursement via tax increment.

1155
01:29:00,900 --> 01:29:03,460
We'll be able to do that in addition

1156
01:29:03,460 --> 01:29:08,280
to financing some of the cost of the actual construction of the homes, whether they're apartments

1157
01:29:08,280 --> 01:29:10,720
or a single family home or something in between.

1158
01:29:11,980 --> 01:29:17,340
So that can be a really important tool, but Kate and I were just talking about, it's

1159
01:29:17,340 --> 01:29:21,480
also important to set guardrails, right, because we don't want to just say, okay, everybody

1160
01:29:21,480 --> 01:29:26,880
gets, you know, no taxes and we'll figure out how to pay for police and fire in schools some

1161
01:29:26,880 --> 01:29:27,340
other way.

1162
01:29:28,720 --> 01:29:32,840
What's really important is establishing, what do you perceive to be the public benefit?

1163
01:29:32,840 --> 01:29:36,840
What are you trying to get as a result of the utilization of that incentive?

1164
01:29:37,600 --> 01:29:42,500
And be very clear with developers about here's what we're after, whether it's households

1165
01:29:42,500 --> 01:29:47,760
earning less than 60% of the median income, or it's households earning all the way up

1166
01:29:47,760 --> 01:29:54,420
to 100% or 120% of the median income, defining what you're willing to offer in exchange for

1167
01:29:54,420 --> 01:29:57,720
that public benefit, and how long you're willing to offer it for.

1168
01:29:57,720 --> 01:29:59,980
under the brownfield plan act your-

1169
01:30:00,000 --> 01:30:05,300
You can provide a reimbursement for up to 30 years until their eligible expenses are fully

1170
01:30:05,300 --> 01:30:11,000
reimbursed. But you can also say, hey, we'll provide a reimbursement for only 10 years if

1171
01:30:11,000 --> 01:30:15,840
you're doing kind of the minimum level of affordability or attainability. But if you're

1172
01:30:15,840 --> 01:30:20,720
doing everything that we ask for, maybe we'll go all the way to the 30 years. You also have

1173
01:30:20,720 --> 01:30:24,580
the ability to think about a revenue sharing agreement, where maybe the city doesn't have

1174
01:30:24,580 --> 01:30:28,260
chips as, hey, we've got to get some revenue out of this, because we're going to have costs

1175
01:30:28,260 --> 01:30:32,300
associated with our infrastructure and our emergency response activities.

1176
01:30:32,980 --> 01:30:38,140
But we're willing to do an 80-20 split, so maybe 80% of the new tax increment goes to

1177
01:30:38,140 --> 01:30:41,000
the developer, and 20% comes back to the local municipality.

1178
01:30:41,980 --> 01:30:45,520
Anyway, that bill should move through the House next week.

1179
01:30:46,100 --> 01:30:51,580
We already have word that Governor Whitmer is supportive, so we would expect a signature

1180
01:30:52,300 --> 01:30:54,280
hopefully by the end of the month.

1181
01:30:54,780 --> 01:30:59,200
And then we'll be able to talk about new tools available to both South Haven and South

1182
01:30:59,200 --> 01:31:02,340
Haven Township to be able to do those kinds of creative financing.

1183
01:31:03,060 --> 01:31:09,060
And I also wanted to mention that talking to one of our guests tonight, I failed to bring

1184
01:31:09,060 --> 01:31:11,820
up, and this is in the plan, so when you read the plan, we'll see it.

1185
01:31:12,180 --> 01:31:15,660
I failed to bring up the opportunities for mobile homes and manufactured homes.

1186
01:31:16,700 --> 01:31:21,840
We have stigmatized those as housing products over time, in a lot of ways because they are

1187
01:31:21,840 --> 01:31:24,700
are not always the best maintained housing options

1188
01:31:24,700 --> 01:31:26,800
in the community, especially when they're older perps.

1189
01:31:27,840 --> 01:31:30,620
But modern manufactured housing,

1190
01:31:30,960 --> 01:31:33,360
modular construction, factory build housing,

1191
01:31:33,760 --> 01:31:36,860
can be very high quality and relatively inexpensive.

1192
01:31:37,620 --> 01:31:40,120
There are some large companies in Indiana and Pennsylvania

1193
01:31:40,120 --> 01:31:43,040
that are making really great high quality mobile home

1194
01:31:43,040 --> 01:31:44,880
and manufactured housing projects.

1195
01:31:45,920 --> 01:31:48,240
Again, they might not be the solution for everybody.

1196
01:31:48,240 --> 01:31:55,460
It's not a perfect way to build equity, but it is kind of a step between renting and full ownership.

1197
01:31:56,560 --> 01:32:02,800
It's another tool in a toolbox to think about where you might want to allow for that type of housing and under what circumstances.

1198
01:32:05,210 --> 01:32:10,150
Well, thank you very much for Brian, and this is a very good housing workshop. I hope you get a lot of information.

1199
01:32:10,150 --> 01:32:15,670
I am going to let you know that these presentations are a little more important to be on the city's website tomorrow.

1200
01:32:16,670 --> 01:32:22,470
Lastly, I'll ask Mayor Smith and Mr. Chairman Mr. Sine from the township to go ahead and close your eaves.

1201
01:32:22,590 --> 01:32:25,190
Mr. Mayor Smith, do you want to go for us?

1202
01:32:36,680 --> 01:32:37,180
Mr. Sine?

1203
01:32:47,070 --> 01:32:47,530
All right.

1204
01:32:47,870 --> 01:32:52,770
All right, thank you both for doing it.

1205
01:32:52,890 --> 01:32:54,010
Thank you everyone for coming.

1206
01:32:54,350 --> 01:32:56,070
I hope you had an information for you tomorrow.

1207
01:32:56,070 --> 01:32:56,910
Thank you very much.

1208
01:32:56,990 --> 01:32:57,510
Thank you.