Getting Started
Just Getting Started?
How to use this Guide
Fair Housing
Importance of Data and Housing Strategies
Assembling Your Development Team
Welcome to the Western U.P. Housing Development Guidebook. Built on Michigan's 2022 Statewide Housing Plan and WUPPDR's own Housing Study & Strategy, this guide walks you through each stage of development with a local lens, from assessing community needs and zoning to financing and resources. Along the way, we highlight responsible practices, like green building, that strengthen both your community and your investment.
How to use this Guide
The Western U.P. Planning & Development Region (WUPPDR) has developed this Guidebook to support the implementation of Michigan’s Statewide Housing Plan (2022). Because it also takes WUPPDR’s own Housing Study & Strategy into consideration, the Guidebook is both a comprehensive and locally tailored resource.
The Guidebook presents each step of the development process through a Western U.P. lens; that includes assessing community needs, zoning regulations, the phases of development, financing, and helpful resources. This process varies depending on a particular project’s scope, location, timing, funding sources, and countless other factors. Ethics in housing development.
Real estate development can have real impacts on local communities, economies, and the environment. While development can have positive economic effects, it can also have negative social and environmental effects, such as reinforcing inequalities, contributing to gentrification, and degrading environments.
Real estate practices that consider the environmental, human and social aspects will benefit the community and your investment. Green building practices, for example, increase energy efficiency, reducing utility costs and have been increasingly popular.
Below are some simple questions to consider when assessing a project for ethical practices.
Is the site near existing infrastructure?
Does the project incorporate green building materials or energy efficient appliances, innovative heating and cooling methods, and/or (for redevelopment properties) addressing energy efficiency issues?
Are native plantings considered in the plans?
Is there adequate green space?
Environmental
Social
Below are some simple questions to consider when assessing a project for ethical practices.
Will the rent or purchase cost of all or a portion of your units for rent/sale be within an affordable range for your area (< 120% of the household area median income)?
Will people be displaced temporarily or permanently?
Health and wellness benefits to consider:
Low-toxicity and low-VOC materials
Building design for natural light,
Proper ventilation
Recreational opportunities nearby
Resources
Western U.P. native plants
Sustainable and green building practices
2. Fair Housing
The Fair Housing Act protects people from discrimination when buying, leasing, renting, financing, and/or advertising housing based on their:
Race
Color
Religion
Sex (including sexual harassment)
National origin
Familial status
Disability
Additionally, through an amendment to the Elliot-Larsen Civil Rights Act (ELCRA), the Michigan Legislature also includes explicit protections against discrimination on the basis of sexual orientation and gender identity/expression
Resources
MSHDA Fair Housing information
United States Fair Housing Act
FHA Refresher: Avoid common mistakes in your property marketing
Fact sheet: affirmative fair housing marketing plan (AFHM)
3. Importance of Data and Housing Strategies
To progress smoothly and successfully through a project, it is vital to where you intend to locate your project. The Guidebook contains resources to help address housing needs, zoning regulations, and existing planning tools of the community. Projects that directly address the state, regional, and local housing issues through strategies that align with Michigan’s Statewide Housing Plan are more likely to garner local and state support. Michigan published its first ever Statewide Housing Plan in 2022. The plan provides a wealth of information for the new or experienced housing developer on statewide trends. At the regional level, WUPPDR’s Housing Study & Strategy (2022) provides an overview of the Western U.P.’s housing issues along with population and household profiles, housing trends, and strategies for each county. These are two important resources to consider when planning a housing project.
The U.S. Census Bureau’s Decennial Census (an actual count of the population and housing units), updated every 10 years on years ending in 0) and the American Community Survey (ACS) (a survey of a random sample of the population, updated annually) will provide demographic information needed for a project . The ACS has more recent data and a great deal more of it, but it is subject to inaccuracies due to large margins of error. In addition, the State has created the Michigan Housing Data Portal—a valuable resource for everything from demographics to housing supply, housing equity, and job data.
It can also be useful to talk to residents of the general area to learn about the local housing situation, what residents see as the area’s needs, and what would be most harmonious with their neighborhoods.
4. Assembling your Development Team
The core development team will consist of the developer, architect, and general contractor. However, many other important parties will be a part of the wider development team throughout the process.
Developer
The developer coordinates or manages the entire project. The developer should be a problem solver and skilled manager of people and processes. The developer often helps generate project ideas, assemble the team, acquire site control, and develop an exit strategy at the project’s completion. They also often act as the financial arm: providing financial statements and finding capital for the project, including providing the leverage needed to acquire loans. A developer should know how to work with people, be able to manage the assets and have the technical skills necessary to take the project to the finish line.
Core Development Team
For-profit Developers
A for-profit developer may be motivated by the long-term value of a property and often makes use of property management companies owned by themselves or by a third party. These developers must agree to the regulations and restrictions on affordable housing units and income limits that are regulated by the city, county, state or federal entity.
Nonprofit Developers
Most often, the goal of nonprofit developers is to build affordable housing for underserved communities. These developers could include low-income housing coalitions, community development corporations (CDCs), community foundations, or other similar entities. In addition to affordable housing development, non-profit developers also engage in economic and neighborhood development activities, often in partnership with local organizations, agencies, and governmental units.
General Contractor
A general contractor, or GC, oversees the actual building of the project. It is up to the GC to keep the project on schedule by coordinating subcontractors to keep the project moving forward. The GC will also arrange for inspections and be on site to monitor the quality of the construction. The GC can assist with design, prepare bid documents with the architect, and provide a warranty for the work they complete. They can also oversee payments to the subcontractors.
When putting together your development team, ensure that you choose a GC experienced in residential/commercial projects and finance programs.
Architect
An architect acts as a project’s design champion, designing a project to your specifications, financing programs, and type of housing (for sale or rent, single family or multi-family, etc.). An architect is primarily responsible for site plans, building plans, and building safety. They will also coordinate with the GC on the designs and the costs of the project, providing the GC with specifications and assisting with the development of bid documents for the project.
Like your GC, your architect should also be experienced in residential/commercial housing development.
You can find local architects through WUPPDR’s Key Developer Contacts resource.
Market Analyst
The first step is to understand the market conditions in the community being considered. A market analyst will conduct a market analysis to determine the types of housing needed in a community, determine and absorption rates. Generally, a developer will act as the market analyst, citing existing studies, if available (such as Target Market Analyses [TMAs]) to develop a marketing plan to sell or rent units within the project.
Title Company
A title company makes sure that the property has proper title and is free and clear of any liens, claims, or unpaid taxes.
The title company will conduct a title search to look for rightful ownership that includes existing mortgages, liens, judgements, unpaid taxes, and restrictions such as easements. The title company issues title insurance which protects the buyer from financial harm in legal issues from disputes over ownership of the property.
Title companies also act as an escrow agent, a neutral third party that can hold funds that are to be exchanged between the buyer and the seller of a property. In Michigan, a title agent facilitates the closing settlement of a transaction, making certain all documents are correct, signed and that the funds have been properly disbursed. The title company can also record the transaction (deed and any mortgage) at the county level.
You can find local title companies through WUPPDR’s Key Developer Contacts resource.
Attorney
Legal representation is a key part of building the wider development team. An attorney is responsible for preparing organizational documents and helping acquire local approvals. When developing a housing project, choose an attorney with an understanding of real estate law, particularly affordable housing. Not all attorneys are experienced in all types of law.
Accountant
A qualified accountant with experience in residential or commercial real estate can help structure your project’s finances, track development costs, and ensure compliance with tax regulations to help with the success of the project. Accountants can provide support in budgeting, forecasting, managing cash flow, and advise on financing strategies and tax credits for affordable housing developments. The accountant can also prepare financial statements and documentation needed for lenders, investors, and regulatory agencies. An accountant who understands the complexities of real estate development will help guide the decision-making project to keep the project financially on track.
Realtor
Realtors can identify suitable properties that align with project goals, assess property values, and negotiate purchase terms. A realtor understands current market conditions, local zoning, neighborhood trends, buyer or renter demand, and can help navigate the acquisition process.
Accessibility Consultant
Accessibility consultants are versed in accessibility-related laws and regulations. Accessibility should be included early in the planning process. An accessibility consultant can work closely with the architect to ensure an inclusive design is created.
Community Members
Community members are central to the foundation of any housing development. Their input helps ensure that projects reflect local needs, values, and priorities. Engaging residents early helps to build trust and foster transparency, and this can lead to better outcomes.
Listening to community feedback, and allowing their perspectives to be heard, will help shape the development and help pave the way for the project’s success
Green Consultant
Many professionals are Leadership in Energy and Environmental Design (LEED) certified, creating LEED-certified green buildings that are healthy, sustainable, and cost efficient. LEED Certified professionals utilize Integrated Design Principles within the whole building design.
Local Government Officials
Government representatives are key in shaping the regulatory and policy environment for housing development including zoning approvals, permitting, infrastructure, and the allocation of public funds or tax incentives. Building relationships with elected officials and municipal staff can be critical to navigating approvals and ensuring a project meets community standards and legal requirements.
Lenders
Lenders provide the financial backing necessary for housing development, including construction loans, permanent financing, and bridge funding. Lenders assess the viability of a project based on risk, return, and market conditions. A strong relationship with a commercial lender who understands real estate development, especially affordable housing, can help secure favorable terms and ensure that funding is available when needed. Lenders also require detailed financial documentation and may influence project timelines and scope based on financing conditions.