Muskegon City Commission Approves 15-Year NEZ for Affordable Housing Developments

February 08, 2025 | Muskegon City, Muskegon County, Michigan


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Muskegon City Commission Approves 15-Year NEZ for Affordable Housing Developments
In the heart of Muskegon, city officials gathered to discuss pressing housing issues that resonate deeply within the community. The recent City Commission meeting highlighted the ongoing efforts to address the housing shortage, particularly through the development of new homes by Stephen Homes and Investment. The proposed sale prices for these homes are set at $200,000 each, with the developer securing a 15-year Neighborhood Enterprise Zone (NEZ) certificate, which aims to incentivize homeownership and stimulate local economic growth.

As the discussion unfolded, concerns emerged regarding the demographic of potential buyers. Commissioner Jeremy German raised a critical point about the local community's need for affordable housing, questioning whether the new homes would primarily benefit Muskegon residents. Developer Steve Benedict acknowledged the challenge, noting that while some buyers are local, many homes are listed on the Multiple Listing Service (MLS), attracting interest from a broader market. This reality sparked a dialogue about the implications of new housing developments on existing residents, particularly in light of a previous housing needs assessment that indicated a significant demand for affordable options.

Commissioner Kilgo emphasized the importance of educating residents about home buying, suggesting that many locals may not be aware of the opportunities available to them. He pointed out that while new construction homes may not directly serve the unhoused population, they could alleviate pressure on the existing housing market, potentially keeping prices stable for current residents.

The meeting also touched on the broader context of Muskegon's appeal as a community, with its lower cost of living compared to neighboring areas. This attractiveness has led to an influx of new residents, which, while beneficial for the local economy, raises concerns about gentrification and the displacement of long-time residents. The commissioners expressed a collective desire to ensure that the benefits of new developments extend to all community members, particularly those struggling to find affordable housing.

As the meeting concluded, the city manager announced plans for a survey to gather data on who is purchasing these new homes, aiming to better understand the impact of these developments on the community. The conversation underscored a shared commitment among city officials to navigate the complexities of housing in Muskegon, balancing growth with the needs of existing residents. The path forward remains uncertain, but the dialogue reflects a community grappling with the challenges of housing affordability and accessibility in a changing landscape.

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