Sustainable Communities, Local Impact: The Michaels Organization COO Matt Sullivan on the Future of Affordable Housing

From pioneering affordable housing programs in the early 1970s to managing a current $5.1 billion development pipeline, The Michaels Organization has established itself as a force in the affordable housing sector. Now, as the largest privately held owner of affordable housing in the country, the organization is pushing the boundaries of what’s possible in sustainable, community-focused development.

Building Communities Through Innovation

“We’re the national developer, owner and operator who can truly solve all of a city’s housing needs,” explains Matt Sullivan, Chief Operating Officer of The Michaels Organization. “From deep subsidy public housing to tax credit to attainable workforce housing, student housing, and even military housing – we do it all.”

At the heart of Michaels’ innovative approach to attainable housing development are what Sullivan calls “the three pillars”: free or discounted land, tax abatement, and infrastructure savings. “Getting one, two, or three of those, starting with the land, supports our decision to pursue an opportunity in this space,” Sullivan explains. This strategy allows Michaels to deliver properties with below-market rents to support private enterprises, municipalities, and even hospitals facing affordable housing challenges.

Setting New Standards in Sustainability

The organization’s commitment to innovation extends to sustainability through their BuildWELL program, which emerged from their 2023 Leadership Development Program. The initiative, developed with architecture partner Urban Practice, establishes a three-tier framework that aligns with The Michaels Organization’s core values while addressing critical environmental and resident needs.

The Bronze level, reflecting their value that “Our Status is Never Quo,” focuses on energy and water management through ENERGY STAR Multifamily New Construction Program standards. While certification isn’t required for market-rate properties, the standards ensure effective energy and water management practices that prioritize resident wellbeing.

The Silver tier, embodying their value to “Let’s Go Out a Little Further,” builds upon Bronze requirements by adding Zero Energy Ready Home standards and meeting 90% of 21 select credits from Enterprise Green Communities and Fitwel. These carefully chosen credits emphasize healthy buildings and environments, incorporating everything from native landscaping to integrated pest management and universal design features.

The Gold level, representing their commitment to “Do Well by Doing the Extraordinary,” requires full certification from recognized rating systems such as ENERGY STAR Multifamily New Construction, Enterprise Green Communities, LEED Multifamily, or regional programs like CalGreen or Earthcraft. This highest tier demonstrates Michaels’ dedication to third-party verified environmental excellence.

Building Community Through People and Programs

Managing 630 communities across 39 states presents unique challenges, but Sullivan emphasizes their hyper-regional, community-focused approach. “We always hire from the local community and employ residents when possible,” he explains. “Our corporate teammates that support these sites live in the same regions—they understand the resident demographics, unique needs and requirements of each state and municipality.”

This local-first strategy is backed by robust team development. “We’re fiercely loyal to our teammates, and we want to give them every chance we can to help them progress with their careers,” Sullivan says. The organization supports on-site teams with mentoring programs, regional facilities directors, and in-house support services, fostering a culture of continuous improvement and excellence.

In an industry where success is measured not just in units built but in lives improved, The Michaels Organization stands out for its comprehensive approach to community development. This commitment is perhaps best exemplified by the Michaels Educational Foundation, which has awarded more than $16 million in scholarships over its 34-year history. The foundation has helped thousands of economically disadvantaged residents, including many non-traditional and older students, achieve their dreams of higher education. The impact has been generational, with many scholars being the first in their families to earn college degrees.

The organization’s community impact extends beyond education through their partnership with Better Tomorrows, a nonprofit social services provider. This collaboration brings vital resources to residents including food pantry programs, after-school programs, and mental health services. In their headquarters’ region alone, the foundation has provided over $2.3 million in scholarships to schools around Pennsylvania and New Jersey, including more than $100,000 for residents attending Camden County Community College.

Looking Ahead

Looking ahead to 2025, The Michaels Organization is embarking on several ambitious initiatives. A partnership with Disney will deliver 1,400 units aimed at 80-120% area median income residents in Orlando. The organization is also reinvesting approximately $1.7 billion in their military portfolio through unit modernizations, new construction, and sustainability upgrades.

One particularly innovative initiative involves expanding their captive insurance company. “We’re looking to deliver insurance products to our properties and residents at a strategic value proposition,” Sullivan explains. This approach aims to save both time and money through low-overhead captive insurance options – a creative solution to the challenging insurance market facing real estate owners.

“We realize these are not just apartments, but homes to families and individuals. We become a part of the local communities in which we serve,” Sullivan reflects. Through their integrated approach to housing development, sustainability, and community investment, The Michaels Organization continues to demonstrate how thoughtful development can create lasting positive change in communities across America.

This article was written based on an interview with Matt Sullivan, Chief Operating Officer of The Michaels Organization, conducted in early 2025.