Michigan Governor Gretchen Whitmer is funneling over $14 million in 9% Low-Income Housing Tax Credits into ten affordable housing initiatives in the state, aiming to both construct and revamp 484 rental homes. According to Whitmer's recent announcement released on the official Michigan website, this move is part of the state’s broader strategy to alleviate housing costs and increase the availability of rental housing.
In Michigan, Whitmer's tactics appear straightforward: increase the supply to drive down buyer and renter prices. The LIHTC funding is not just about homes; it's expected to support 808 temporary jobs, 23 permanent jobs, and catalyze a $171 million development investment. “Today’s investments statewide will build and protect 484 homes while supporting more than 800 good-paying construction jobs," Whitmer said, affirming her commitment to expanding Michigan's housing market, as reported by the Michigan official website.
The Low-Income Housing Tax Credit program works through a competitive application process conducted by the Michigan State Housing Development Authority (MSHDA), and enables developers to offset their tax liabilities for up to a decade. Tony Lentych of MSHDA noted, “By investing in new development and rehabilitation of existing properties, we’re helping ease the pressure on the housing market and bringing stability and opportunity to more communities across the state," as noted by the Michigan website.
Detroit's upcoming 130 E. Grand Boulevard Apartments, spearheaded by Communities First, Inc and Church of the Messiah Housing Corp, is one recipient of the credits, bagging $1.65 million. This project, with a pricey tag of $25.8 million, will offer 50 affordable units alongside four at market rate. Nine units will be set aside for those with housing vouchers, and another 19 will serve as permanent supportive housing backed by MSHDA vouchers. Another notable development is Grand Rapids' Alpine Senior Apartments, slated to receive $1.41 million in credits, and providing 52 affordable units catered to seniors, with ten earmarked for rental assistance vouchers. The developments of these projects promise to create both temporary and permanent jobs, from construction to potential management positions.
Communities from South Haven Township to Muskegon will see the creation of complexes like Lighthouse Ridge Apartments and Froebel Place – each adding a supply of homes for those earning between 30% and 80% of AMI. Moreover, Union Suites on Coit II in Grand Rapids is diving into its second phase, looking to expand with 52 new units and a slice of the job market expected to arise. With each project strategically financed through a blend of LIHTC awards and loans from various financial institutions, the resources are aligned to foster tangible community growth and opportunities.
In Detroit, the multiphase project Villages of Parkside is pressing forward. Financial support via LIHTCs and Citibank loans is propelling both the third and fourth phases, with dozens of family-friendly units marked for completion. This effort signifies not only an increase in housing inventory but a concerted push toward long-term economic vibrancy in the region. The LIHTC awards, which range from approximately $743,000 to $1.65 million, are pivotal infusions aimed at securing a more economically diverse and housing-abundant future for Michiganders.
