Michigan Invests $141 Million to Combat Housing Crisis with New Affordable Housing Projects
Michigan is taking significant steps to address its ongoing housing shortage, with a new initiative allocating over $141 million over the next decade to bolster the availability of affordable housing across the state. The investment, announced Thursday by Governor Gretchen Whitmer, will support ten developments in six communities through the allocation of over $14 million in federal Low-Income Housing Tax Credits (LIHTC).
The program aims to alleviate pressure on the state’s real estate market by both constructing new units and rehabilitating existing properties. According to a senior official, “More homes mean more options and lower rentals for all state inhabitants.” The projects will cater to a diverse range of needs, including families, seniors, and individuals requiring permanent supportive housing.
Expanding Housing Options Across Michigan
The funding will facilitate the creation or rehabilitation of at least 484 rental homes, generating over 800 temporary construction jobs and 23 permanent positions. The total investment spurred by this initiative is projected to exceed $171 million.
Governor Whitmer emphasized the importance of the investment, stating, “We are making historical investments in housing to expand the offer and reduce costs for Michigan’s families.” She added that the new homes will “provide stability to hundreds of families” and simultaneously “drive the local economy with well-paid jobs in construction.”
The selected projects represent a variety of housing types, from traditional apartment complexes to innovative single-family modular homes. Units will be accessible to individuals earning between 30% and 80% of the Area Median Income (AMI), ensuring a broad reach within the state’s low-to-moderate income population. Several developments will also incorporate rent subsidies and permanent supportive housing options, facilitated by local housing commissions.
Key Projects Receiving Funding
Several projects stand out as examples of the initiative’s potential impact:
- 130 E. Grand Boulevard (Detroit): A $25 million+ investment will deliver 50 units, including crucial permanent support housing.
- Allen Crossing III (Muskegon): This development will add 42 new units specifically for low-income households.
- Alpine Senior Apartments (Grand Rapids): 52 units will provide much-needed housing for older adults utilizing assistance vouchers.
- Brown City Homes: This project will construct 27 single-family modular homes with a future pathway to homeownership.
- Froebel Place (Muskegon): 46 units will offer subsidized rent and cater to diverse family structures.
- Lighthouse Ridge (South Haven): 52 family units will be built in a rural setting, addressing a critical need in underserved areas.
- Northern Pines (Battle Creek): This project will provide 55 units for low-income individuals, with 28 designated for permanent supportive housing.
- Union Suites on Coit II (Grand Rapids): The second phase of this development will add 52 units, prioritizing diversity in family sizes and needs.
- Villages of Parkside – Phases III & IV (Detroit): Two phases of urban renewal will collectively add 94 new units, with a significant portion offering rent subsidies.
LIHTC: A Key Tool for Affordable Housing Development
The Michigan State Housing Development Authority (MSHDA) administers the LIHTC program through a competitive application process. These credits, available to developers for up to ten years, are a vital mechanism for incentivizing the construction and preservation of affordable homes throughout the state.
Tony Lentych, deputy director of MSHDA, underscored the strategic importance of expanding the housing supply. This latest round of funding demonstrates the state government’s unwavering commitment to ensuring access to decent housing and strengthening communities across Michigan.
.
