MSHDA ANNOUNCES LOAN FOR AFFORDABLE FAMILY HOUSING IN SAGINAWContact: Office of Communications 517-373-0011Agency: State Housing Development Authority
January 26, 2004
State Housing Development Authority (MSHDA) today approved over $24.6 million
in loans for the construction of two family rental housing developments in
Sponsored by the Saginaw Housing Commission, the projects are being submitted to the U.S. Department of Housing and Urban Development (HUD) for HOPE VI funding, which will provide replacement housing for HUD Public Housing developments in Saginaw.
The MSHDA loan approvals ensure the feasibility of the projects and enable the sponsor to apply for federal funds from HUD.
"MSHDA is pleased to support the developers of this project in their efforts to improve housing in Saginaw," MSHDA acting executive director Rick L. Laber said. "This development is an example of how the Authority is working to improve the supply of affordable rental housing with rent levels within reach of lower income families."
Northeast Saginaw Community Homes, to be located on the former Town and Garden public housing site in northeast Saginaw, will have 110 family units. All of the units will be rent-restricted: 18 units will be targeted to households with incomes at or below 50 percent of area median, and 42 units will be occupied by households with incomes below 30 percent of area median. The remaining units will be targeted to households with incomes at or below 60 percent of area median.
Community Homes, consisting of 156 family units, will be located on the former
Daniel's Heights site in northeast Saginaw. All of the units will be
rent-restricted: 56 units will be targeted to households with incomes at or
below 50 percent of area median, and 44 units will be occupied by households
with incomes below 30 percent of area median. The remaining units will be
targeted to households with incomes at or below 60 percent of area median.
The developments will replace current public housing and add new, affordable housing units to the city's stock.
The HOPE VI Program was developed as a result of recommendations by the National Commission on Severely Distressed Public Housing, which was charged with proposing a National Action Plan to eradicate severely distressed public housing.
The Commission recommended revitalization in three general areas: physical improvements, management improvements, and social and community services to address resident needs.
MSHDA will finance the loans under its Limited Obligation Mortgage Revenue Bonds "Pass Through Program," which offers low interest loans to for profit or nonprofit developers for new construction or rehabilitation of rental developments.