PORTAGE, Mich. — The first community land trust in Kalamazoo County is breaking ground on Stanwood Crossings, a new affordable housing development that will keep homes affordable for current buyers and future generations.

The development will build 42 single-family homes where residents purchase their houses but lease the land from the Portage Community Land Trust. This ground lease model ensures that homes remain affordable over time by separating the cost of the structure from the value of the land.

"Only the house is purchased by the resident," said Pete Dame, City of Portage Chief Development Officer. "So when the resident goes to sell their house, they sell it to someone who the community land trust has determined meets the affordability range."

Qualified buyers must fall within 80% to 120% of the area median income. For 2025 in Portage, that means annual incomes between $69,040 and $103,560 for a three-person household. When a home is resold, the community land trust sets the price based on current area median income and finds a buyer who qualifies.

City of Portage Housing Resource Specialist Anita Johnson said the program targets workforce housing for city hall workers, teachers, firefighters, and police officers who cannot afford typical market rates.

"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.

The ground lease agreement gives the land trust authority to set resale prices and adjust income requirements as area median incomes change. Johnson explained that this shared equity program allows buyers to purchase their home at a discounted rate with a resale restriction that transfers to the next income-qualified family.

"It is a shared equity program so essentially buyers are able to purchase their home at a discounted rate with a resale restriction that they will sell their home to another income-qualified family, which essentially creates that affordability over perpetuity," Johnson said.

Dame noted that the ground trust model prevents windfalls from grants meant to maintain affordability. Without the land trust, the first homeowner would capture profit from any appreciation in home value.

"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," Dame said. "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."

The city used American Rescue Plan Act funds to purchase the land and is using Tax Increment Financing to support the development. Construction has begun on the first two of 42 total homes, with completion expected in November 2025. Interested buyers can complete an inquiry form on the City of Portage website.

The Stanwood Crossings project marks the first community land trust in Kalamazoo County. There are only a handful of such developments in Michigan, and Portage leaders hope to expand the model statewide.

"This community land-trust concept that we're putting to work here, is the first one in Kalamazoo County," Dame said. "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."

The affordable housing crisis has deep roots dating back to the 2008 housing crash, according to local real estate expert Dan Jaqua. Builders left the business and housing supply contracted for more than a decade, driving up prices for those who want to buy while boosting values for existing homeowners.

Portage leaders say the Stanwood Crossings model addresses the challenge by creating a sustainable system that keeps homes affordable for the average worker.

Sources:

  • https://wwmt.com/news/local/michigan-affordable-housing-solutions-stanwood-crossings-portage-city-jaqua-realtors-money-economy-infrastructure-kalamazoo-county
  • https://www.mlive.com/news/kalamazoo/2025/10/a-new-portage-housing-development-hopes-to-create-long-term-affordable-housing.html
  • https://www.wmuk.org/wmuk-news/2025-09-29/a-new-housing-development-in-portage-hopes-to-create-long-term-affordable-housing