*Portage Pioneers Affordable Housing Solution as Michigan Leaders Seek New Approaches to Housing Crisis*

The City of Portage is building something never before attempted in Kalamazoo County. A community land trust that will allow residents to own homes while keeping them affordable for future buyers.

The development, called Stanwood Crossings, is underway in Portage and will include 42 affordable new homes. When someone lives in one of those homes, they will also own it. This is different from traditional affordable housing where residents might rent for decades without building equity.

Community Land Trust Concept

Drew Forsyth wanted a new home but wasn't sure he could afford one. He always considered his family middle-class but has witnessed the dissolution of the middle class to a large degree since growing up.

His realtor told him about a concept the city of Portage was trying through Stanwood Crossings. This community land-trust concept is the first one in Kalamazoo County, said Patrick McGinnis, city manager of Portage. There is only a handful of them in Michigan, so the city hopes to grow this concept to deliver more affordable housing throughout the state.

Funding the Project

The City of Portage used American Rescue Plan Funds to buy the land. The city is also using a state development tool called Tax Increment Financing, which allows the city to use future tax money from the project for the development.

This approach means the city invested in the land upfront using federal pandemic relief funds. The TIF structure allows Portage to fund ongoing development costs through future property tax increases from the new homes being built.

Why It Matters

Owning a home is called the American Dream, but it has become so expensive between high home prices and higher interest rates that it is not attainable for a growing number of people.

Drew Forsyth touring a new home being built at Stanwood Crossings said when his realtor described what the program was, he thought we should be doing this all over the place. The affordable housing crisis in Michigan requires creative solutions that allow families to build wealth while maintaining affordability.