Peninsula Housing preserves duplex at below market rate for Lake Leelanau residents

From staff reports

Peninsula Housing, the Leelanau County-based community land trust, has announced the acquisition of a duplex rental property on St. Joseph St. in Lake Leelanau, purchased with the help of a loan from Housing North as part of a pilot rental preservation program. The tenants will be able to remain at their present below market rates, even though Peninsula Housing paid market price for the property.

“We were approached by the owners over a year ago,” said board member Sara Michael. “They wanted to retire but find a buyer who would keep the rents affordable for their tenants. We worked out a deal that involved a zero-interest down-payment loan from Housing North and favorable financing by the sellers for the balance of the purchase price. Now we are fund-raising to repay those loans.

“This would not have been possible without the loan from Housing North, which we want to repay as soon as possible, so they can lend the money out to another affordable housing project somewhere in our area.”

“We were so excited to be awarded a grant from Consumers Energy Foundation, which was matched dollar for dollar by individuals and other foundations, to launch this pilot project to help a local nonprofit secure year-round housing,” said Yarrow Brown, executive director of Housing North. “As the funds are repaid over the next five years, we hope to support similar projects throughout the region.”

This is one of a series of projects Peninsula Housing is doing to retain housing that is affordable to year-round residents, both rentals and owner-occupied homes. A single-family home is currently being offered in Suttons Bay, priced to be affordable to a family making 80-100 percent of the area median income.

Meanwhile, Peninsula Housing is working to develop new housing. Those units will take more than two years to develop, as the community land trust works with the community to get zoning approvals, install infrastructure, design the development and acquire financing before beginning construction.

For more information on the work of Peninsula Housing visit www.peninsula-housing.org, or email home@peninsula-housing.org.