Petoskey council holds special session as shelters, case management and funding gaps leave dozens without housing

Petoskey’s City Council convened a special session on Sept. 9 to hear from local service providers about shortages in shelter beds, affordable housing and supportive services and to discuss next steps for a coordinated local response.

The Nehemiah Project’s executive director, Brian Peters, told the council the faith-based shelter network — which operates the Nehemiah House (men’s shelter), Mary Margaret House (women and children), Grace House (transitional housing) and Hope Hall (dayroom) — is operating at capacity. “So far this year, we’ve turned away over a 130 people because we don’t…lack the space,” Peters said, adding that about 60% of current guests have jobs but that affordable housing remains the primary barrier to exit.

Leaders from the Northwest Michigan Community Action Agency (the local Housing Assessment and Resource Agency, HARA) explained how coordinated entry, diversion and rapid-rehousing programs work in Emmet and Charlevoix counties and urged more funding for case management. Sarah Hughes, director of homeless and housing stability, said the agency currently runs eight combined rapid-rehousing program slots in Charlevoix and Emmet — all full — and is asking for $100,000 over three years to expand diversion and case-management capacity.

“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 said.

Roman Haith of the Salvation Army described existing relief services that plug immediate gaps: two weekly hot lunches (Wednesdays and Fridays, about 40 people on average, 8–10 identified as unhoused), a new twice-weekly shower ministry and clothing vouchers. He said local hotel vouchers are currently unavailable because hotels will not accept the arrangements the organization can offer.

Brian Babbit, CEO of North Country Community Mental Health, described the mental-health safety net’s role and limits. The agency — 92% funded by Medicaid — provides crisis screening, Assertive Community Treatment teams and referrals but cannot pay for room-and-board; Babbit noted many clients rely on SSI (about $967 per month for a single beneficiary), which constrains who can realistically afford private-market rents.

Council members pressed for local counts and clarifications. Agency staff said there are currently about 55 households in need of housing support across Charlevoix and Emmet counties (a combined figure), eight rapid-rehousing slots for those counties, and slow turnover in long-term slots. Peters and agency staff emphasized transportation barriers, long income-based housing wait lists, a shortage of permanent-supportive housing, and the difficulty of securing hotel partners for emergency lodging.

Several speakers urged regional coordination. Babbit noted models used elsewhere — mobile medical units, housing task forces and stronger jail diversion — and council members agreed to pursue a follow-up work session to consider a countywide task force and concrete next steps. A member of the audience also announced Nehemiah has acquired 7 acres near US‑31 and plans a 60‑person facility, a development presenters said could anchor a regional approach if funding and partners align.

The meeting ended with council agreement to regroup for targeted planning and outreach to county and regional partners. Mayor Murphy said awareness had been raised and the next step would be exploration and preparation toward concrete options; the council adjourned at the close of the session.