The Petoskey-Harbor Springs Area Community Foundation (PHSACF) finalized the purchase of property in the city of Petoskey to move forward with a proposed 60-unit workforce housing development. 

“We saw an urgent need to secure this property to preserve it for future workforce housing,” Jones said in a press release.

According to PHSACF, the property had already been identified by the city of Petoskey as a priority site for redevelopment and had an approved plan from local developer G. A. Haan Development called The Lofts at Lumber Square. 

In July 2021, Haan Development’s application for low-income housing tax credits to the Michigan State Housing Development Authority (MSHDA) was unsuccessful, leaving the project in need of funding.  

In the last 10 months, PHSACF has worked closely with Haan Development, the Gruler family and the city of Petoskey to ensure the housing development would move forward. 

In November 2021, PHSACF began a fundraising effort and successfully raised the money needed to purchase the property and pay for necessary environmental studies and legal fees.

The purchase was made possible from the support of nearly 190 donations made by community donors, including donor advised fund (DAF) holders at the community foundation and CMF member the Frey Foundation.

As CMF reported, PHSACF has been working to support the housing shortage for several years. 

The development is anticipated to include 60 units of workforce housing that the community foundation anticipates will serve households with income up to 120% of its area median income.

“We recognized that our contribution to this project would be the cost of the land,” Jones said. “We want to keep The Lofts at Lumber Square vision alive. Purchasing this property buys us the gift of time as we continue to work closely with Haan Development to secure additional funding and financing for the project. We are working on plans for a third party, specifically a nonprofit partner with experience managing workforce housing, to eventually own and manage the development once completed.”

Want more?

Read the full press release. 

Read more about PHSACF’s housing work.