Talent and Economic Development
Detroit, Grand Rapids and Lansing among cities represented in tax credit projects
Media Contact: Misty Miller
517-373-1858 | email@example.com
July 11, 2017
LANSING, Mich. – Quality, affordable housing options will soon be on the rise in Michigan with a new round of funding for statewide projects. The Michigan State Housing Development Authority is awarding 13 affordable housing developments with $11.6 million in Low-Income Housing Tax Credits (LIHTC), Executive Director Earl Poleski announced today.
“These tax credits are extremely important for providing the incentive developers need to renovate and construct quality, affordable housing which is in high demand for Michigan families, seniors and people with special needs,” Poleski said.
Developers on four different Detroit projects will use a collective $4.4 million in LIHTC to rehabilitate 271 existing units and create 114 new units of affordable housing in the city. The new construction project, Brush Park South, will be comprised of three new buildings that will integrate 67 market rate units and retail space with the affordable housing units. Over the 10-year lifetime of the tax credits, these four projects will leverage approximately $39.8 million of private money for the preservation and creation of affordable housing in Detroit.
Grand Rapids developers will use $2.1 million in LIHTC to build 81 units of new affordable housing. Harrison Park Apartments is planned to be built near Harrison Park Elementary School with 45 units, 12 of which will be reserved for Permanent Supportive Housing. Garfield Park Lofts will create an additional 36 units on Burton Street SE. Together, these tax credits will leverage $19.2 million of private money toward the creation of affordable housing in Grand Rapids.
The former administrative building and the historic high school on the campus of the old Michigan School for the Blind in Lansing will be converted into 60 apartments for seniors, known as The Abigail Senior Apartments. LIHTC for this project will leverage approximately $10.8 million of private money toward the creation of affordable housing in Lansing.
LIHTC are federal tax credits administered by MSHDA after a competitive application process. There are two funding rounds per year, in October and April, each for approximately half of the available credit. Michigan's annual authority for 9 percent LIHTC is roughly $23 million.
"With this latest round of funding, 862 units of rental housing are planned to be built or rehabilitated using LIHTC," Poleski said. “We estimate that it will leverage more than $104 million in private investment for Michigan.”
The 13 projects that earned LIHTC awards in this funding round are:
The Peterboro Arms, Detroit
Developer(s): Coalition on Temporary Shelter
Annual LIHTC Award: $1,050,000
Ryan Court Apartments - Phase II, Detroit
Developer(s): American Community Developers, Inc.
Annual LIHTC Award: $721,569
Roberts III, Detroit
Developer(s): Mr. Samuel Thomas, Jr.
Annual LIHTC Award: $1,179,424
Brush Park South, Detroit
Developer(s): SB Brush Park South LLC, RCM Brush Park South LLC, and Chesapeake Community Advisors, Inc.
Annual LIHTC Award: $1,462,990
Harrison Park Apartments, Grand Rapids
Developer(s): Dwelling Place of Grand Rapids Nonprofit Housing Corporation
Annual LIHTC Award: $1,232,954
Garfield Park Lofts, Grand Rapids
Developer(s): LINC Community Revitalization, Inc, Orion Real Estate Solutions, Dwelling Place of Grand Rapids Nonprofit Housing Corporation
Annual LIHTC Award: $934,988
The Abigail Senior Apartments, Lansing
Developer(s): TWG Development, LLC
Annual LIHTC Award: $1,224,400
Port Crescent Apartments, Bad Axe
Developer(s): MDV Properties GP LLC, D&D Consultants LLC, TPenland LLC, James 127 LLC, Cree Construction Company 1 LLC
Annual LIHTC Award: $673,232
The Edmond Senior Apartments, Charlotte
Developer(s): TWG Development, LLC
Annual LIHTC Award: $688,586
Center Street Apartments, Hartford
Developer(s): PK Development Group, LLC
Annual LIHTC Award: $262,314
Mill Trace Apartments, Ironwood
Developer(s): UPCAP Services, Inc and TJ Acquisitions, LLC
Annual LIHTC Award: $356,342
Dearborn Town Center Senior, Dearborn
Developer(s): MHT Housing and REDICO/American House Senior Living
Annual LIHTC Award: $1,500,000
Milan Village Apartments, Milan
Developer(s): The Woda Group, Inc.
Annual LIHTC Award: $385,965
The Michigan State Housing Development Authority (MSHDA) provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income residents and to engage in community economic development activities to revitalize urban and rural communities.*
*MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds as well as notes to private investors, not from state tax revenues. Proceeds are loaned at below-market interest rates to developers of rental housing, and help fund mortgages and home improvement loans. MSHDA also administers several federal housing programs. For more information, visit www.michigan.gov/mshda.