MISSION

COALITION MEMBERS
REAL STORIES

Resources
Get Involved
Contact

Stay informed as this effort and website continue to grow.

Save The Date

Lunch On The Lawn
Wednesday, May 2, 2007
11:30 am - 1:30 pm
Lansing, MI

Click to Register

About Us

MISSION

The mission of the program is to provide housing opportunities for all Michigan residents, and to help transform our economy by improving the quality of life in Michigan's cities, towns, and villages – especially those with high concentrations of poverty – to create vibrant communities' where people want to live, work, and retire. Building and sustaining vibrant cities is central to any plan to revitalize Michigan. Michigan’s Housing and Community Development Fund will accomplish its mission by:

Financing downtown and neighborhood improvements to make them attractive places to live and do business.
Financing affordable and market rate housing for young people, knowledge workers, immigrants, early retirees, and people with low and moderate incomes.
Financing supportive housing for the homeless and people with disabilities.

return to top

About the Issue

Resources and funds for the development of affordable housing continue to decline while economic conditions for lower income households become even more difficult. We are truly at a fork in the road, because as high unemployment rates continue and as wages are being reduced, the numbers of homeless people grow.

As Michigan moves from an economy that depends on high paying manufacturing jobs to a service based economy, there must be a connection between the creation of jobs and the availability of safe, high quality, affordably priced housing. And, with job providers looking at Michigan as an option to locate, we must prove that we can maintain a host of vibrant cities where their workers will want to live.

According to Governing Magazine: Michigan is ranked 48th in the country on a per capita basis for its state revenue support of affordable housing.

As this issue is now on the table for Michigan, 38 states have already decided to help address their critical housing needs by establishing housing trust funds.

return to top

Economic Development

The Housing and Community Development Fund would leverage additional funding from public and private sources. It is estimated that housing projects will have a 1:3 ratio and community development projects a 1:2 ratio. Thus, a $100 million program (80% for housing/20% for community development) will leverage an additional investment of $280 million, create over 6,000 good paying jobs and generate approximately $21 million in state and local taxes!

Just as important as the economic impact, the social return on investment is tremendous. The increased stability for families with extremely low and low incomes will increase their quality of life, and allow them to become invested in the success of the neighborhoods and communities in which they live. Especially important is that children in permanent housing grow and learn at a faster rate than children that are not.

Although actual uses will ultimately be determined on a year by year basis based on need and resources, below are some potential uses. Many of these uses come from the Five Year Action Plan for Affordable Housing, Community Development (download the PDF), and Homelessness report (download the PDF) issued in 2006. The emphasis with respect to the distribution of funds will be equitable for both metropolitan and rural areas alike.

Financing Downtown and Neighborhood Improvements:

Façade improvements
Signature building rehabilitation
Demolition of blighted buildings
Pocket parks
Targeted neighborhood redevelopment
Local land banks
Community centers
Cultural events
Green building

Smart Growth Tactics

Michigan Planner - August 2006

return to top

Affordable Housing

If Michigan's economy is to experience true transformation, there must be a connection between the creation of jobs and the availability of safe, high quality, affordably priced housing. And, for companies from across the country to considering re-locating to Michigan — or to encourage existing Michigan companies to stay — we must prove that we can maintain a state full of vibrant cities where their workers will want to live.

However, considering the current condition of our economy, it should be no surprise that, in fact, according to Governing Magazine: Michigan is ranked 48th in the country (on a per capita basis) for its state revenue support of affordable housing. Michigan is not attracting businesses because we are not providing them with the real incentive to which they will respond — to be a partner with a vibrant, creative state with momentum.

While this issues is currently being debated at the legislative level here in Michigan, 38 states have already decided to help address their critical housing needs by establishing housing trust funds. Michigan has created one, but has never put a dime into it. Now is the time for that to change.

Below are some examples of how the Michigan Housing and Community Develop Fund can help boost Michigan’s affordable housing market.

Financing Affordable and Market Rate Housing:

Individual development accounts
Mortgage down payment assistance for college graduates and people with moderate incomes
Employer assisted housing
Land trusts
Foreclosure prevention
Predatory lending education
Rental housing for families, the elderly and people with disabilities
Assisted living for the elderly
Workforce housing
Preservation of existing affordable rental housing

return to top

Supportive Housing

Resources and funds for the development of affordable housing continue to decline while economic conditions for lower income households become even more difficult.

As high unemployment rates continue and as wages are being reduced, the numbers of homeless people grow. And the demographics of Michigan's homeless are probably not what you think they are. In Michigan,data shows that 36% of our homeless families are working. Families with a single female as the head of household comprise 59% of those families. And sadly, 56% of homeless persons in families were children — most under the age of 10. When you look at the school performance of children with stable housing versus children without stable housing, the results are like night and day. If we do not make affordable housing available to these children and families, there is a greater likelihood that they will remain homeless as adults. If we do not choose to make affordable housing available to these children and families, the future cost to support them through public services will be devastating - placing a burden on Michigan’s taxpayers that will increase each year. The time to invest in the people of Michigan is now.

The growing gap between the number of affordable housing units and the number of people needing them has created a housing crisis for poor people. Between 1973 and 1993, 2.2 million low rent units disappeared from the market because they were either abandoned, demolished, converted into condominiums or experienced dramatic cost increases. At the same time, the number of low-income renters increased, due to factors such as eroding employment, fewer good paying jobs, and the availability of public services. It would take annual production of more than 250,000 units for more than 20 years to close the housing affordability gap.

In the meantime, children are the ones paying the highest price. According to Habitat for Humanity studies, when you house a family, 68% report an increase in family income, 25% report better grades in school, 23% report less sickness, 58% report less family conflict, 40% report going on to get additional education.

Financing Supportive Housing: