Petoskey council hears regional providers detail shelter capacity, service gaps and a $100,000 funding request

Petoskey City Council convened a special session Sept. 9 to hear presentations from homeless-service providers who described full shelters, limited housing options and gaps in case management and emergency shelter capacity across northern Michigan.

Brian Peters, executive director of the Nehemiah Project, told the council the faith-based nonprofit operates three housing sites that together house men, women and families: the Nehemiah House (men, up to 12 beds), the Mary Margaret House (women and children, up to 9 beds) and the Grace House (transitional housing, up to 4 people). Peters said the project also runs a day room called Hope Hall and provides meals, laundry, case management and life-skills programming.

"We provide emergency shelter for men, women, and children, and families," Peters said. He described a shift away from a fixed 90-day shelter stay to individualized plans that may extend six months or longer depending on each guest's progress.

Peters gave 2024 outcome figures for Nehemiah Project guests: about 19 percent moved into permanent housing, 32 percent into temporary housing (with friends or family), 13 percent into institutions (for example, rehabilitation or psychiatric hospitals), 17 percent were listed as unknown after leaving the program, and 19 percent returned to homelessness. He said the organization has six paid staff, more than 50 volunteers, and is regularly at capacity: "So far this year, we've turned away over a 130 people because we don't we lack the space," Peters said, adding that last year the shelter turned away over 150 people.

Sarah Hughes, director of homeless and housing stability at Northwest Michigan Community Action Agency (the local Housing Assessment and Resource Agency, or HARA), outlined the region's coordinated-entry system, diversion and rapid-exit work, street outreach and rental-assistance programs. Hughes said the agency seeks to keep homelessness "rare, brief and one time," and emphasized the agency's "housing first" approach: getting people into stable housing to address other issues.

Hughes said Charlevoix and Emmet counties currently have eight rapid-rehousing program slots (18–24 month placements) and that those slots are full. She reported that case managers' average caseloads have grown from about 30–35 clients in 2022–2023 to 35–45 clients more recently, and that the agency currently lists 55 households in Charlevoix and Emmet counties who need housing or support.

"With the current increase of homeless population at 56% in our balance of state area, we are requesting additional program support to address the current need," Hughes told the council. "We are asking for $100,000 over three years to increase these funds to support our growing caseloads." She tied the requested funds to adding diversion capacity, more rapid-rehousing slots and case-management support.

Roman Haith, envoy for the Petoskey Salvation Army, described meal, food-pantry and hygiene services. The Salvation Army provides two hot meals a week at its facility (Wednesdays and Fridays), a new shower ministry twice weekly and clothing vouchers; Haith said lunch programs feed about 40 people per session and that roughly 8–10 of those attendees are people experiencing homelessness. He said the Salvation Army once used hotel vouchers as overflow shelter but has been unable to secure hotel partnerships in recent years.

Brian Babbitt, chief executive officer of North Country Community Mental Health, described how the public mental-health system intersects with housing needs. Babbitt said most services the authority provides are Medicaid-funded and tailored to people with severe mental illness or intellectual/developmental disabilities. He noted that people on Supplemental Security Income often have monthly incomes under $1,000, which places them squarely in the need category for income-restricted housing. Babbitt described Assertive Community Treatment (ACT) teams as an intensive, multidisciplinary service that can help people with serious mental illness remain in the community.

Council members and providers discussed local obstacles that limit exits from homelessness: low availability of income-restricted rental units at roughly 30–50 percent of area median income (AMI), insufficient public transportation, long waits for Housing Choice Vouchers and limited overnight shelter options when local beds are full. Councilmember Walker noted that Nehemiah's women's shelter is located in Ward 4, where new housing development is also occurring.

During public comment, a representative of the Nehemiah Project said the nonprofit has acquired seven acres near Meijer in the Hintertown area and plans to develop a roughly 60-person facility over the next couple of years; Peters said the land is owned free and clear following private donations and could become a regional anchor if partners contribute to construction and services.

Council members agreed to explore next steps, including a possible work session or a county-level task force that would bring the city, county, service providers and other stakeholders together to build a coordinated plan. No formal city funding decision was made during the meeting.

Providers urged the council to consider both short-term responses (overflow locations and emergency funds) and long-term solutions (more income-restricted units in the 30–50% AMI range, expanded rapid rehousing and increased case-management capacity).

"If we can stop it at the source, that makes a huge difference," Hughes said, arguing that diversion and rapid rehousing reduce pressure on shelters and emergency services.

The council did not take votes on funding at the Sept. 9 meeting; members said they would continue discussions with county partners and service providers about potential next steps and resource options.