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.