The Michigan State Housing Development Authority and Governor Gretchen Whitmer have awarded $13 million to create 529 affordable, multi-family rental properties across the state.
The funding comes through the Low-Income Housing Tax Credits Program (LIHTC), which is aimed at supporting affordable housing developments and preservation across Michigan. The program permits developers to claim a credit against their tax liability annually for a period of 10 years.
Chad Benson, MSHDA rental development director, told WGVU this helps incentivize investments in local communities at a time when inflation is creating a difficult market for affordable housing and property rehab.
“The need is everywhere right now. The cost of housing is rising and the supply of housing is just not there to meet the demand,” he explained.
Two Grand Rapids project awardees were named in this round of funding: Boston Square Together earned $1,500,000 to create 45 housing units. Breton Grove received $1,316,000 to create 55 units. Developers for Boston Square Together are Brinshore Development and Amplify GR. Woda Cooper Development will be working on Breton Grove.
In order to qualify for these future housing developments, Benson says tenants’ earnings can’t exceed 60% of the area median income.
The investment from these projects statewide is expected to add approximately $151 million to the state’s economy and create 1,000 jobs. This first round of funding, enables creation of 529 new, affordable housing units.
