ANN ARBOR, MI — Several hundred people who work in Ann Arbor are lining up for a chance to buy homes through a new nonprofit initiative.
The Ann Arbor Community Land Trust’s Townie Homes project is designed to create affordable for-sale homes for essential workers in an otherwise high-cost market.
Here are five takeaways from original reporting by MLive/The Ann Arbor News.
1. $5 million in tax incentives help greenlight project
The Washtenaw County Board of Commissioners and City Council both unanimously approved a brownfield plan providing about $5 million in tax incentives. This allows the land trust to capture future property taxes paid by Townie Homes buyers for up to 30 years, and the trust will be able to get a loan to finance construction backed by that revenue stream.
2. Homes priced below construction costs to combat high market rates
The land trust plans to provide homes for less than they cost to build — priced between $125,000 and $325,000 — in a city where average home prices exceed half a million dollars. The project targets households with essential workers such as school teachers, hospital workers and University of Michigan employees who are often priced out of homeownership in the city.
3. Long waitlist highlights strong demand and need
Initial plans call for 26 single-family homes and accessory dwelling units on sites along Scio Church Road, Maple Road, Wagner Road and Jewett Avenue, with hopes of doing more. There is overwhelming demand, with over 850 people on a waitlist, and a lottery system is being used to select buyers. UM employee Chloe Hill and Ann Arbor special education teacher Luke Woodworth, two of the initial lottery winners, both said Townie Homes are going to be a game changer for them, making homeownership possible.
4. Community Land Trust model ensures long-term affordability and equity
The land trust plans to ensure homes remain affordable for future generations, with resale prices limited by a formula in long-term ground leases or deed restrictions. This approach is different from traditional private developments focused solely on maximizing profit, providing both individual wealth generation and sustainable community benefit.
5. Project progressing with another lottery planned
Following a ceremonial groundbreaking last September and some initial site preparations, construction is expected to go forward this spring. While all 26 initial homes were reserved, some have become available due to buyers moving or changing circumstances, so another lottery is planned this spring for slots that have opened. Anyone who wants to get on the waitlist for a chance at one of the homes can sign up at www.a2clt.org…