Lansing, Michigan – Gov. Gretchen Whitmer is moving another round of housing dollars into communities where affordable rentals are often hardest to build, announcing more than $18.9 million in federal 9% Low-Income Housing Tax Credits to support 603 new units across Michigan.
The awards will help 13 developments move forward in nine communities, stretching from Detroit and Grand Rapids to Monroe, Bay City, Traverse City, Port Huron, South Haven Township and Sault Ste. Marie.
The funding is aimed at a wide range of needs. Some projects will serve seniors. Others will create workforce housing, permanent supportive housing for people and families experiencing homelessness, or new rental options in rural, urban and Tribal communities. Together, they show how one housing program can touch very different corners of the state.
“Every Michigander deserves an affordable place to live,” Whitmer said, adding that the awards are part of the state’s work to build more housing and make it easier for people to choose Michigan.
The credits are administered by the Michigan State Housing Development Authority, known as MSHDA. The Low-Income Housing Tax Credit program is a federally funded tool that gives developers tax incentives to build or rehabilitate housing for low- and moderate-income households. By lowering financing costs, the credits can help make lower rents possible and keep units affordable over the long term.
MSHDA officials said the awards arrive at a time when affordable housing projects are being squeezed by higher construction costs, financing gaps and broader market pressures.
“Creating affordable housing has become increasingly challenging,” said Tony Lentych, MSHDA chief housing investment officer. He said the credits will help close those gaps, bring in additional investment and create more than 600 homes for Michigan residents.
Detroit will see three developments under the latest round. Alice Birney Townhomes is receiving $1,407,640 to create 52 affordable one-, two- and three-bedroom units. Archdale Senior Apartments is receiving $1,380,950 for 53 senior housing units. Belleview Village, a permanent supportive housing development, is receiving $1,120,634 for 35 affordable apartments, including units backed by rental assistance.
Grand Rapids also received two awards. The 848 Division project is getting $1,473,661 for 46 affordable one- and two-bedroom units. Vision, a senior housing development, is receiving $1,647,490 for 49 affordable units, with 38 expected to receive rental assistance.
In Bay City, the Newmarket Commons initiative will move forward in two phases. Newmarket Commons I and Newmarket Commons II are each receiving $1,650,000. Each phase will create 60 affordable units for households earning up to 60% of area median income, with all units receiving Section 8 rental assistance.
Other awards include $1,650,000 for 75 Scott in Monroe, a 42-unit permanent supportive housing development; $1,476,000 for Allegan Terrace in Allegan, which will create 44 units; and $1,611,000 for Robin Crest in Port Huron, where 48 units are planned, including 24 permanent supportive housing units.
The Grand Traverse Band of Ottawa and Chippewa Indians is receiving $1,098,242 for GTB LIHTC #3 in Traverse City, the third phase of a larger housing initiative that will create 36 affordable rental units and single-family homes. In Sault Ste. Marie, the Sault Tribe Housing Authority PSH project is receiving $1,373,195 for 36 permanent supportive housing units.
In South Haven Township, Sunset Grove at South Haven is receiving $1,369,652 for 42 affordable senior housing units serving households earning between 20% and 80% of area median income.
State officials said the projects are expected to create temporary construction work and a smaller number of permanent positions, while adding housing that communities can keep in place for years. For residents waiting on lower-cost options, the announcement is less about a line item in a housing program and more about something simple: a door that may finally open.
Click here to see the full list of developments that received LIHTC allocations.