NOFA and Grant Programs for Nonprofit Agencies and Local Units of Government

MSHDA's Community Development Division (CDD) will announce a funding window in the near future which will support projects designed to (1) encourage the social and economic investments of time, money and energy in existing neighborhoods to keep current residents and attract new ones; (2) contribute to quality affordable housing production for low and moderate income houeholds in vibrant, diverse, sustainable and walkable neighborhoods; and (3) promote Placemaking -- a multi-faceted approach to the planning, design and management of neighborhood components - building types, spaces, uses, and activities - with public engagement and direction. Placemaking capitalizes on a local community's assets and potential, creating places that promote health, happiness, and well-being.

CDD provides financial assistance to communities to make physical improvements to residential neighborhoods through blight removal of vacant residential structures that are publically owned. 

- Program Statement 
CDD awards grants to community-based nonprofits or local units of government to implement programs that promote homeownership for low-income families. Homebuyer programs generally fall into two categories: (1) programs such as down payment and moderate rehabilitation assistance to help low-income homebuyers purchase affordable housing units and (2) programs promoting housing development, acquisition and rehabilitation, or new construction of affordable units for resale.  A most successful housing development program includes revitalization projects in underserved target areas and/or plans to increase affordable housing stock in the community. 

CDD allocates funding for grantees to administer a homeowner rehabilitation program offering deferred loans to low-income homeowners with an income at or below 80% of the area median income. 

The Pre-Development Loan Program (PDL) provides interest-free capital for costs incurred prior to the development of housing development projects that are or will be submitted to any division of MSHDA.  Eligible applicants must be non-profit housing organizations with 501(c)(3) tax-exempt status.  Eligible uses include but are not limited to the following: Option or earnest money payments on a purchase and sale contract, where such options include language specifying the option is contingent upon meeting Environmental Review requirements as well as securing project financing; market feasibility analysis or market study; environmental testing/assessments; legal services (may not exceed 15% of the loan amount); architectural/engineering design services; costs associated with zoning approvals; engineer’s assessment of existing conditions; soil tests (e.g., geotechnical testing); title costs; consulting fees (may not exceed 15% of the loan amount); and other eligible development costs as determined by MSHDA

RENTAL REHAB PROGRAM - Program Statement
CDD's Rental program is designed to improve investor-owned properties and spur economic development in Michigan's downtowns. Funding for Rental Rehab is generally provided through the unit of local government with jurisdiction for code enforcement and/or rental licensing. Housing Resource Funds may be combined with MSHDA's Property Improvement Program.  To see the positive impact MSHDA's Rental Rehabilitation program makes watch the Mason Downtown Rental Rehabilitation Informative Video.  

For more information about these programs, please contact MSHDA's Community Development Division at 517-373-1974.

*** Are you seeking Down Payment Assistance to purchase a house? ***