The Federal Home Loan Bank of Indianapolis has announced $17.7 million in grants for Michigan projects, marking a significant investment in affordable housing. This substantial sum marks a new record for the state and represents a significant jump from the previous $6.6 million record set in 2023, as per an announcement from the City of Detroit.

Among the 23 projects funded, Detroit will see seven new developments designed to tackle the housing crisis, contributing to a total of 1,046 new housing units across Michigan, with 1,017 earmarked as affordable. The Affordable Housing Program grants, which can reach up to $1 million per project, are part of a competitive round aimed at subsidizing acquisitions, constructions, or rehabilitations in support of affordable housing efforts in both Michigan and Indiana, the City of Detroit reported.

A total of $34.6 million is being injected across both states this year, setting another funding record for the Federal Home Loan Bank of Indianapolis. The Bank's impact is set to expand with the creation of 1,645 new affordable housing units, surpassing the previous record high of 1,548 units in 2019. With rising rents contributing to a national housing crunch, the Bank’s investment aims to support low- and middle-income families in search of affordable living spaces.

"For several decades, FHLBank Indianapolis has been on a mission to support community lending and affordable housing development across our district of Michigan and Indiana, and 2024 has been an incredible year on that front," FHLBank Indianapolis President and CEO Cindy Konich told the City of Detroit. "In partnership with our members, we’re proud to support our district’s communities with record investments in those sectors. Community solutions, community driven. That’s FHLBank Indianapolis."

The success of this year's Affordable Housing Program is in response to the significant demand for affordable housing, highlighted by a report from the National Low-Income Housing Coalition, which found a shortage of over 188,000 homes for extremely low-income renters in Michigan. MaryBeth Wott, SVP of Community Investment and Strategic Planning, noted that the high number and quality of applications this year demonstrate the need for continued support.