Two West Michigan affordable housing projects have secured $1.9 million in a recent funding round from the Michigan State Housing Development Authority.
MSHDA awarded a total of $17.8 million in Low Income Housing Tax Credits to 17 projects across the state that create or rehabilitate rental properties for affordable housing projects. The federal tax credits awarded by MSHDA allow developers to draw from their tax credit annually for 10 years.
“By investing in affordable housing we’re doing more than just putting a roof over a family’s head, we’re building stronger communities,” Jeff Donofrio, MSHDA Board chair and director of the Department of Labor and Economic Opportunity, said in a statement. “These new projects will create an estimated 3,520 jobs and leverage $220 million in private investments in communities across Michigan.”
The 17 developments will create more than 950 affordable housing units total. Of those, 13 of the projects are new construction comprising 621 apartment units, and four existing properties will have 350 apartment units rehabbed.
Samaritas Affordable Living in Muskegon received $1.02 million for 53 apartment units, and Belknap Place in Grand Rapids received $906,067 in funding to construct 50 apartments. Grand Rapids-based Samaritas and Communities of Hope Inc. are the developers for the Muskegon project. Okemos-based PK Companies LLC and Grand Rapids-based Third Coast Development LLC are the developers for Belknap Place.
A Housing Next study published in July indicates that by 2025 the city of Grand Rapids will need to add at least 5,340 rental units and 3,548 owner-occupied units to satisfy housing demand and affordability. The greatest need is for residents earning up to 30 percent of the area median income and those making at least 80 percent of the area median income, according to the study.
The rest of the developments that received MSHDA funding include five developments in Detroit, two projects in Flint, two projects in Traverse City, as well as developments in Mt. Clemens, Manistee, Farmington Hills, Shelby, Alpena and Meridian Township.
Traverse City Housing Commission, Cove Investments LLC and Ethos Development Partners LLC were awarded $667,281 to rehabilitate 57 apartment units at Riverview Terrace in Traverse City.
Also in Traverse City, more than $1.2 million was awarded to developer Woda Group Inc. to construct 58 new apartments.
Commonwealth Development Corp. of America and City of Manistee Housing Commission received nearly $1.5 million to rehabilitate 167 apartment units at Century Terrace & Harborview Apartments in Manistee.
In Shelby, a project comprising 15 apartments received $450,815, which will be developed by Oceana County Housing Commission NP Corp.
News coverage in the real estate and development section of MiBiz is made possible by advertising support from Rockford Construction Co. Inc. Rockford is a nationally recognized construction, real estate development and property management provider, serving West Michigan and beyond for more than 30 years. This advertisement has no effect on editorial consideration in MiBiz.