New housing projects could soon be coming to the UP

MARQUETTE, Mich. (WLUC) - Upper Michigan cities could be getting more housing.

The Whitmer administration plans to spend $1.4 billion to build or rehabilitate housing throughout the state and create 10,000 new homes in the state.

Home Builders Association of Michigan CEO Bob Filka said, in the U.P., the need for affordable housing is the largest expense in everyone’s budget. He also said he has one major issue with the governor’s announcement.

“Her regulator department has proposed changes to our building codes, meaning whatever new homes, regardless of size have to be built, they are purposing to add about $20,000 in additional costs to those homes, requiring things like sprinklers in all homes, regardless of size,” Filka said.

Filka said these requirements add needless costs, which will eventually price people out of being able to buy a home. He also said if the building code changes aren’t modified, they could go into effect soon.

“Potentially, there could be some legal challenges by us as the association representing the building industry. If those things don’t happen, we could be looking at all these changes going into effect as soon as 2025,” Filka said.

Michigan State Housing Developments Authority CEO Amy Hovey said her agency is thrilled to see the governor do more about the state’s housing crisis. She also says her agency has spent a lot of time in the U.P., and finding affordable housing seems to be something everyone is struggling with.

“You’ve had some growth in population there and especially in the recreational industry, and finding housing for employees has been tough, and we’ve heard the need from the east all the way other to the west Upper Peninsula for the need for housing,” Filka said.

Hovey also said this housing crisis is affecting people of all income levels of the income scale because the foundation for success in any city starts with housing.

MSHDA will be able to implement the plan right away thanks to legislation that lawmakers passed last year identifying revenue sources including Residential TIF, Missing Middle, and federal funding.

Note: This story has been corrected to explain that none of the $1.4 billion that would make the home goal possible needs legislative approval.