LANSING -- Governor Jennifer Granholm today announced that nearly 1,400 units of affordable rental housing will be built or renovated for modest income Michigan families, the elderly, people with disabilities, and those at risk of homelessness as a result of awards of federal Low Income Housing Tax Credits (LIHTC) approved by the Michigan State Housing Development Authority (MSHDA) earlier this week. These awards create an infusion of $157.5 million into the jobs market and can generate 2,000 yearlong jobs in construction and related trades.

“These tax credits are a win for Michigan’s citizens and a win for Michigan’s economy,” Granholm said. “The credits help ensure that more citizens can have access to affordable health care and will help to create more than 2,500 jobs across the state through new construction and new development.”

MSHDA Executive Director Michael R. DeVos said a portion of the total award would provide units of rental housing for disabled Michigan residents as well as those individuals and families at risk of homelessness.

“One thing to remember is that for each dollar of tax credit awarded, more than 10 times that amount is represented in total rental development costs,” DeVos said. “From special needs residents in Grand Rapids, to senior citizens in Flint, to working families in Gladstone in the Upper Peninsula, the housing tax credit program is extremely successful in providing housing opportunities for the state’s low and very low income residents.”

According to DeVos, over 70 percent of the $12,115,992 total was awarded in distressed areas throughout the state.

“Over $12 million was awarded to improve affordable housing opportunities in distressed areas,” DeVos said. “That represents 1,396 units of rental housing in areas already suffering from severe economic strain and high poverty levels. The fact that the Authority can help alleviate some of that pressure is very rewarding.”

DeVos added that the need for housing credits remains high in Michigan while the federally funded dollars needed to provide the housing is shrinking. “As a rule, we are only able to fund about one request for every three to four we receive,” he said.

According to DeVos, the LIHTC program also plays a key role in bolstering the state’s economy through job creation. This round of housing tax credit awards will generate more than 2,500 yearlong jobs in construction and related trades.

Since 1987, MSHDA has allocated the Housing Credit program in Michigan, awarding more than $100 million to assist in the construction or rehabilitation of over 28,000 rental units.

“Established by Congress in the 1986 Tax Reform Act, the aim of the Housing Tax Credit is to stimulate private investment in affordable rental housing and thus to expand and preserve the nation’s affordable housing stock,” DeVos said.

Owners and investors in low income housing may apply to receive a tax credit against their federal tax liability if the rental housing has at least 20 percent of its units for households with incomes at or below 50 percent of the area median, or 40 percent of its units reserved for households with incomes at or below 60 percent of the area median.

The amount of the credit is based on a percentage of certain costs to renovate or develop housing that will be income-and rent-restricted for at least 18 years.

Developers can sell the credit to raise equity for their projects, thus reducing the necessary mortgage financing and making possible lower rents for tenants.

For more information, contact MSHDA’s Low Income Housing Tax Credit program, 735 East Michigan Avenue, Lansing, MI 48912; (517) 373-6007.

2005 Low Income Housing Tax Credit Projects

County Project Name # of Units Location Amount

Branch Prairie Glen Apartments 48 Quincy $ 204,161

Cass Eagles Trace Apartments 40 Dowagiac 268,596

Delta Lakeview Apartments 32 Gladstone 95,930

Genesee Gardenview 118 Flint 460,886

Gratiot Countryside Four 30 Alma 186,806

Hillsdale Waldron Manor 24 Waldron 79,372

Ingham Clinton West Apartments 16 Stockbridge 50,312

Jackson Woodland Hills Apartments 125 Jackson 531,765

Kent The Avenue Apartments 10 Grand Rapids 120,714

Kent Campau Commons Housing 92 Grand Rapids 1,303,485

Kent Verne Barry Place 118 Grand Rapids 1,113,783

Kent Mildred Houting 32 Sand Lake 104,165

Kent Kingsbury Place Apartments 44 Walker 490,563

Lenawee Whitman Crossing 24 Morenci 314,220

Newaygo Fremont Townhomes 12 Fremont 124,296

Ogemaw Wilkens Creek Apartments 16 Rose City 37,587

Van Buren Doranne Greene 49 Hartford 659,430

Wayne Aaron Apartments 27 Detroit 333,499

Wayne Agnes Street Housing 24 Detroit 420,980

Wayne Field Place Apartments 16 Detroit 218,552

Wayne Kendall Homes 38 Detroit 778,231

Wayne Melrose Square Homes 24 Detroit 420,896

Wayne Northwest Unity Homes 45 Detroit 819,977

Wayne Research Park 245 Detroit 1,062,242

Wayne Saratoga Homes 49 Detroit 922,454

Wayne Springwells Partners IV 50 Detroit 701,563

Wexford Sunnyside Estates 48 Cadillac 291,527

# # #