Affordable Homeownership for the Long Haul
PORTAGE, Mich. — Home prices in Kalamazoo County have climbed faster than wages, leaving many middle-income workers unable to buy the homes they need. In response, the City of Portage has launched Stanwood Crossings, a new community that uses a ground lease model to make homeownership accessible to families earning 80% to 120% of the Area Median Income.
"This community land-trust concept that we're putting to work here, is the first one in Kalamazoo County," said Patrick McGinnis, city manager of Portage. "There's only a handful of them in Michigan, so we hope to be able to grow this concept to deliver more affordable housing throughout the state of Michigan."
How Ground Leases Work
Stanwood Crossings is built on a ground lease model. Residents purchase their homes but lease the land from the Portage Community Land Trust instead of buying it. This approach lowers purchase prices because buyers do not pay for the land. Initial home prices are discounted from construction costs, sometimes by 25% through grants that support the land trust.
"When my realtor described what the program was, I thought we should be doing this all over the place," said Drew Forsyth, a resident who wanted to buy a home in Portage. Forsyth toured a new home being built at Stanwood Crossings.
The city used American Rescue Plan Funds to purchase the land. The city is also using Tax Increment Financing, a state development tool that allows Portage to use future tax money from the project for the development.
Income Guidelines and Resale Rules
Qualified buyers must fall within 80% to 120% of the area median income. For 2025 in Portage, that's $69,040 to $103,560 for a three-person household. These guidelines target essential workers including teachers, firefighters, nurses, police officers, and city employees.
"When my realtor described what the program was, I thought we should be doing this all over the place," Forsyth said.
When the house is resold, the community land trust sets the price based on the current area median income and finds a buyer that meets income requirements. This process keeps houses within reach for the average buyer and ensures affordability over perpetuity.
"If there was no community land trust, whoever the city might sell the initial house to would just walk off with the profit from any incremental value that may have accrued over the course of time of holding house, but also they would obtain a windfall from the — typically a 25% reduction in the overall cost of the home which was provided by a grant, and the purpose of the grants was to maintain affordability," said Pete Dame, Portage Chief Development Officer.
The First Homes
Construction has begun on the first two of 42 total homes that will sit in Stanwood Crossings. The homes are expected to be completed in November 2025.
The development features four thoughtfully designed floor plans:
- Two ranch-style homes (1,206 and 1,353 sq ft) with 2 to 3 bedrooms
- Two two-story homes (1,504 and 1,696 sq ft) with 3 bedrooms
Each home is energy-efficient with a private driveway, an attached two-car garage, and plenty of yard space. Homesites range from 6,600 to 15,600 square feet.
Building a Pride of Ownership Community
Portage Housing Resource Specialist Anita Johnson said the ground lease agreement gives the land trust authority to set the prices of the houses when they're relisted and adjust income requirements based on updated area median incomes.
"We are focusing what we call workforce housing. Those are our city hall workers, teachers, firefighters, our police officers throughout our community who are unable to obtain housing," Johnson said.
Johnson emphasized that the goal is to make the houses affordable for current buyers and the next generations of owners to come. The ground lease agreement creates a shared equity program where buyers purchase their home at a discounted rate with a resale restriction that they will sell their home to another income-qualified family. This essentially creates affordability over perpetuity.
"I often correct people, because people say we have an affordability problem and I feel like we probably have an availability problem," said Dan Jaqua, owner of Kalamazoo-based Jaqua Realtors. Jaqua noted that the roots of the current housing crisis date back almost 20 years to the 2008 housing crisis.
Why This Matters for Portage
Portage leaders say part of the reason they felt Stanwood Crossings was needed is because they constantly hear from business leaders who are concerned about whether new employees coming to West Michigan can afford to live here.
"The concern is that new employees that they are trying recruit to the area, are having hard time find housing they can afford at the wages that are being offered," McGinnis said.
National housing experts note that the legislation would have to pass in both the Michigan House and Senate before being sent to the Governor to be signed into law.
Location and Process
Stanwood Crossings is located between Stanley Avenue and Woodbine Avenue in Portage. Interested buyers can join the interest list to receive updates as new information becomes available. To be added, residents complete and submit the Stanwood Crossings Interest Form on the Portage city website.
For those ready to take the next step toward purchasing a home, residents complete and submit the pre-application. Once submitted, it will be sent directly to Kalamazoo Neighborhood Housing Services. A KNHS staff member will contact the resident to review their information and guide them through the process of becoming a homeowner at Stanwood Crossings.
Sources:
- https://nowkalamazoo.org/2026/04/voters-to-decide-on-taxes-for-schools-and-portages-trash-system/
- https://www.portagemi.gov/959/Stanwood-Crossings
- https://www.mlive.com/news/kalamazoo/2025/10/a-new-portage-housing-development-hopes-to-create-long-term-affordable-housing.html
- https://www.mykalamazoorealestate.com/blog/stanwood-crossings-portage-affordable-housing
- https://www.portagemi.gov/CivicAlerts.aspx?AID=1582