Peninsula Housing is a non-profit community land trust committed to providing affordable housing in Leelanau County.
If you are interested in helping us, please email: home@peninsula-housing.org.
A Community Land Trust (CLT) is a private, nonprofit corporation created to provide secure affordable access to land and housing for the benefit of the community. The CLT provides access to ownership of housing for people who would otherwise be priced out of the housing market.
CLTs are unique in that they separate ownership of land and homes. CLTs permanently own the land on which homes and other structures are built, while individuals own the home (or other structures) on the land pursuant to a long-term renewable ground lease.
The deal that a homeowner makes with the Community Land Trust is the ability to purchase an affordable house now in exchange for giving up a portion of the future appreciation of the home.
Briefly, here are the typical terms of a CLT purchase:
Peninsula Housing’s mission is to provide affordable housing that remains affordable for generations.
Peninsula Housing is a CLT that, in addition to the typical CLT land ownership, extends the model to include affordable workforce apartment rentals.
Peninsula Housing’s first projects include, in addition to single family homes and duplexes, studio, one and two bedroom rental apartments, owned by Peninsula Housing, built on land owned by Peninsula Housing. These apartments will be designed and built to reduce energy use, helping to keep the cost of workforce housing affordable for the long term.
A Community Land Trust (CLT) is a private, 501(c)3 nonprofit corporation created to provide secure affordable access to housing for the benefit of the community. CLTs provide access to housing for people who would otherwise be priced out of the housing market.
CLTs are unique in that they separate ownership of land and homes. CLTs permanently own the land on which homes or rental facilities are built, creating the opportunity to keep prices affordable for homeowners and renters.
For the purposes of Peninsula Housing, the terms “affordable housing,” “attainable housing,” and “workforce housing” are interchangeable.
Housing is considered affordable when you spend 30% or less of your income on housing. For example, if your annual household income is $72,000, the average median income in Leelanau County in 2022, your household should spend no more than $1,800 per month on housing. “Housing” includes costs like rent, mortgage, property taxes, and utilities.
Peninsula Housing prioritizes creating affordable housing opportunities for people making between 60% and 120% of the area’s median income.
Owning a home with a Peninsula Housing ground lease is very similar to traditional home ownership. The biggest differences are how the home is purchased and sold.
Just like traditional homeownership, the homeowner is responsible for paying the mortgage, homeowners insurance, utilities, and property taxes. The home can also be inherited, sold, and improved.
Unlike traditional homeownership, the homeowner does not own the land, although they are granted exclusive use of the land through the long-term ground lease. The ground lease also restricts who the home can be sold to and how much the home can be improved to ensure the home remains affordable. Peninsula Housing also retains the right of first refusal when a homeowner wants to sell.
The biggest difference between traditional home ownership and owning a home from Peninsula Housing is the cap on resale profits. When a homeowner sells a house with a Peninsula Housing ground lease, the appreciated value is shared between the homeowner and Peninsula Housing. This decreases the amount of equity the homeowner can receive compared to traditional homeownership but allows the home to remain affordable for the next homeowner.
Anyone interested in purchasing an affordable home from Peninsula Housing is encouraged to contact the Northern Michigan Community Action Agency (NMCAA). NMCAA reviews all potential homeowners for Peninsula Housing and provides support to prepare people for homeownership, like credit help and downpayment savings plans.
In addition to purchasing the home, homeowners also enter into a 89-year ground lease agreement with Peninsula Housing.
Peninsula Housing can recommend several local banks that are experienced with mortgages for homes with ground leases.
Peninsula Housing is a tax-exempt 501(c)3 nonprofit that is funded by generous donors and lenders.
The easiest way to support the creation of affordable housing that remains affordable for generations is to make a donation at peninsula-housing.org. You can also mail a check to “Peninsula Housing” at PO Box 555, Suttons Bay, MI 49682.
We also encourage you to learn more about affordable housing in northern Michigan at housingnorth.org. Housing North is an excellent affordable housing resource that creates and advocates for housing solutions in rural Michigan.
Peninsula Housing retains ownership of the land upon which the home sits, and leases that land to the homeowner by a Ground Lease. This lease restricts the resale of the home, assuring that the home will remain affordable for subsequent purchasers.
The Ground Lease restricts the future sale price of the home, sharing the increase in equity between the homeowner and Peninsula Housing. This shared equity system rewards the homeowner with portion of the increased value in the home , but keeps the price of the home affordable for the next buyer.
YES. Families making as much as 120% of the Area Median Income for Leelanau County cannot afford the average price of homes in the county.
The homes we have sold have been available to families making between 80 and 100% of the Area Median Income, which in 2024 for a family of four was $107,700.
We are currently working to provide rental housing that will be affordable for persons making as little as 60% of Area Median Income.
