A Place to Call Home: How RDOs and Other Partners Assist Rural Housing

1. -Northwest Michigan Housing Challenges Matt McCauley, CEO

2. Geography

3. Elevator Speech • Networks Northwest is a 10-County agency serving Northwest Lower Michigan. • We administer a variety of programs that are often seen as separate entities in other parts of the state and nation. • $9.5M/year, 85 FTE’s • Public agency, but operates more like a non-profit. (grant driven with zero taxing or policy authority) • Talent, business, and community connect northwest Michigan. We help.

4. Housing- Know Your Region Networks Northwest Housing Resources: networksnorthwest.org/housing

5. Housing- Know Your Region

8. 2020 Target Market Analysis- Total Home Value

9. SHORT TERM RENTALS

10. Short-term rental definition The commercial use of renting a dwelling unit for a period of time less than thirty consecutive calendar days.

11. Short-term rentals are everywhere •They are everywhere •They are not new •They are not a trend •They are not going away •$100 billion global market •$78 million in Michigan (2018)

12. Business model has changed • Sharing economy has changed how transactions occur – No longer have to know someone who knows someone who has a cottage… – Within seconds hosts and vacationers find each other • The past consisted of scattered rentals along a lakeshore • Reality is that they are everywhere – Inland neighborhoods and out in the rural regions – In tents, trailers, boats, etc.

13. A growing industry • In Michigan the number of short-term rental listings has grown 233% in just two years! • 84% of the listings are for the entire home

14. Our region Six of the 10 counties in this region are in the top 20 counties with the most listings: • Leelanau #2 • Charlevoix #4 • Grand Traverse #8 • Emmet #11 • Antrim #13 • Benzie #16

15. A growing industry • In 2018, Investors purchased 11% of the US homes sold • That level of investment is almost twice the pre-recession investment levels

16. To regulate or not… • Know why you are choosing to regulate • Impacts on neighborhood/community • Noise, parking, other nuisances • Preserve year-round housing • Understand the marketplace • Enforcement considerations

17. Comments - Pro and Con Against • Hotel next door • ↓ Property values • Noise / late hours • Trespassing • Community character • ↓ Housing availability • Safety concerns • Unfair competition For • They’ve always been here • Market will take care of it • Core property right • ↑ Property values • Protect my investment • Plan to retire here • Economy depends on it • ↑ Tax revenue

18. Questions Matt McCauley CEO, Networks Northwest mccauley@networksnorthwest.org networksnorthwest.org/community

19. SUMMIT RIDGE APARTMENTS October 2020

20. Region XII COG Service Territory

21. Housing Programs History  First project: 1991 USDA Housing Preservation Grant Established priority to build RLFs  HOME, CDBG, USDA, FHLB  HIRE (earmark), LHAP (political windfall)  Local Housing Trust Fund

22. Development History As a Facilitator/Financer/Administrator  RLF for acquisition/demolition (various cities)  Subdivision loan (Arcadia)  Developer loans (various)  Neighborhood Stabilization Program (various cities)  LIHTC Loan (Denison)  Second story projects (various developers)

23. Development History As a Developer  DMACC Building Trades (COG) Built five homes  Denison Schools Building Trades (COG) Built one home  Denison Spec Houses (COGH Inc) Built two homes

24. Leaping off Summit Ridge  Diversification/sustainability discussion internally about building and owning “something”  Concern of losing money/creating an albatross  Nervous about being a landlord  Where to invest?  Found our nerve…. We think…

25. Project Location – Wall Lake, 2017

26. How We Got to “Yes”  Free land  City cooperation  Location of the land  Partnership with Twilight Acres  Seniors are easiest/entry drug for rental

27. Indicators for our “Yes” - Location Grocery Store and Bank City Hall/Community Center/Congregate Meal Site and Post Office Restaurant, Bar, Variety Store, Hardware Store, and Medical Clinic

28. Piecing Together Funding FHLB (grant) HOME (0% loan) Tax credits (state) Housing trust fund (grant) Equity Tax Abatement (code)

29. Other Factors  Drilling down in the pro-forma  Rents collected  Client incomes  Vacancy rate  Anticipating all costs  Property taxes  Clearing the lot  Sweating out the bid process  Investing here versus another town  Risk & the board  Maintenance  Section 8

30. Groundbreaking – September 2018

31. Duplex Unit Construction

32. Duplex Unit - Complete

33. Triplex Unit Complete – April 2020

34. Lessons Learned  Plan to carry the project financially (grants lag)  Plan to spend money in places you didn’t anticipate (old foundations, utility issues, items missed in the plans, etc.)  Maintain close conversations with funders (they want to help make the project successful)  Old ladies don’t like spiders  Good PR and excitement doesn’t always equal renters  These projects are not money-makers but a good service.

35. What’s Coming Up in Development? 1. Jefferson Single- Family 2. Glidden Duplexes 3. Homes for Iowa 4. ???

36. Questions? Region XII COG 1009 East Anthony Street PO Box 768 Carroll, IA 51401 712-792-9914 rhunsaker@region12cog.org www.region12cog.org

37. NeighborWorks.org 2020 NADO ATC – 10/20/20 Sarah Kackar, AICP Director, Rural Initiative – NeighborWorks America A Place to Call Home: How RDOs and Other Partners Assist Rural Housing

38. NeighborWorks.org Agenda • Introduction • Who is NeighborWorks? • How Do We Engage and Support Rural Housing and Communities? • Rural Housing Best Practices • Resources and Opportunities

39. NeighborWorks.org NeighborWorks Mission NeighborWorks America creates opportunities for people to live in affordable homes, improve their lives and strengthen their communities. We offer programs and support to help community- serving organizations maintain healthy operations, measure the reach of their efforts, expand their programs to meet community needs, and move toward long-term stability and growth. We build skills, supplement resources and amplify the reach of organizations so they can empower more individuals and transform more communities.

40. NeighborWorks.org NeighborWorks Network At the foundation of the NeighborWorks mission are more than 240 strong, healthy and prepared NeighborWorks network organizations in every state, the District of Columbia and Puerto Rico.

41. NeighborWorks.org Sample of NeighborWorks Activities Lending Through CDFIs Homebuyer Assistance and Counseling Rental Eviction Prevention Housing Rehabilitation and Replacement Affordable Housing Development Small Business and Commercial Microlending Community Development Partnerships Organizational Resiliency Professional Training Community Building and Engagement

42. NeighborWorks.org NeighborWorks Impact • Grants - FY19, $91 million in grant funding was distributed from our annual core appropriation. • Community Impact - FY19, more than $9.65 billion of investment in communities. • Technical Assistance – grants, capacity- building, peer exchange • Training and Leadership Development – FY19, awarded over 14,000 training certificates • Organizational Assessment – Data-driven methodologies and evaluations

43. NeighborWorks.org • 116 member NeighborWorks organizations work predominantly in the rural space • Origins: Informal rural organization cohorts since 1980s; formalized into Initiative in 2000. • Funded grants, studies, toolkits, and peer exchange programs include topics such as rural capital, manufactured housing, broadband access, healthy communities, and civic Rural Initiative

44. NeighborWorks.org Engage and Support Rural Communities NeighborWorks Organization Snapshot

45. NeighborWorks.org HOPE Enterprise Corp Mississippi • The HOPE Community Partnership provides strategic and focused community and economic development training and technical assistance for communities. • The ultimate goals are to advance key economic development projects, attract private and public resources, expand economic opportunity, and build the financial capability of the communities and their residents.

46. NeighborWorks.org • Home Construction and Repair • Homeownership Education and Down Payment Assistance • Rental Community Construction • Small Business and Individual Lending • Sustainable Energy Solutions • Emergency Services Self-Help Enterprises California

47. NeighborWorks.org NeighborWorks Montana A multi-faceted organization providing: • Homeownership Counseling • Real Estate Development Lending • Homeownership Lending • Resident Owned Community (ROC) support for Manufactured Housing

48. NeighborWorks.org Resources and Partnerships • Network Directory • https://www.neighborworks.org/Our- ur-Network/Network-Directory • Training Services • https://www.neighborworks.org/Traini aining-Services • Success Measures • https://www.neighborworks.org/Comm mmunity/Outcome-Measurement • National Housing Intermediary Partners • Housing Assistance Council (HAC) • Enterprise • Rural LISC

49. NeighborWorks.org Contact: Sarah Kackar – skackar@nw.org

A Place to Call Home: How RDOs and Other Partners Assist Rural Housing

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A Place to Call Home: How RDOs and Other Partners Assist Rural Housing