New tax credit allocations invest $12.6 million in affordable housing from U.P. to Detroit and points in between

Media Contact: Misty Elliott

517-335-9847 | elliottm7@michigan.gov

December 19, 2019

LANSING, Mich. –The Michigan State Housing Development Authority is awarding more than $12.6 million in Low-Income Housing Tax Credits (LIHTC) to build or rehabilitate 15 developments in big cities and small towns across Michigan, Acting Executive Director Gary Heidel announced today.

“This round of tax credits will create hundreds of new apartments and rehabilitate hundreds more in areas of high need throughout our state,” Heidel said. “We know there’s a big demand for affordable housing in urban areas, but rural areas often face similar housing challenges and I’m especially excited to see the geographic diversity in the credits we’ve awarded in this round.”

Eight of the 15 LIHTC-backed projects will be new construction. The other seven developments will benefit from critical safety improvements, energy efficiencies and modernized amenities. In all, nine of the developments are in Opportunity Zones, areas established by Congress in the 2017 Tax Cuts and Jobs Act. Opportunity Zones are eligible for additional tax benefits aimed at spurring private investment, economic growth and jobs in distressed communities.

“Adding to the housing stock in Opportunity Zones will expand and improve the affordable options for a growing workforce,” Heidel said.

LIHTC is a critical resource for developers when planning to build or rehabilitate quality affordable rental housing. It is estimated that this round of tax credit awards will leverage almost $98 million in private investment for Michigan over the 10-year lifespan of the credits.

“These tax credits are a limited resource, and there is always a greater demand than what we have available to allocate,” said Chad Benson, LIHTC allocations manager at MSHDA. “In this funding round alone, the demand outweighed available credits three to one. If enacted, the Affordable Housing Credit Improvement Act would have enabled us to fund about 7 more developments.”

The widely supported Affordable Housing Credit Improvement Act would expand and strengthen LIHTC to produce more units of affordable housing and better serve at-risk and underserved communities. In an announcement earlier this week, this and other provisions were stripped from the bill’s final version in the last hours of negotiation.
 
The 15 projects that earned LIHTC awards in this funding round are:
 
The Anchor at Mariners Inn, Detroit
Developer: Mariners Inn
LIHTC Award: $1,300,000

Benjamin O. Davis Veterans Village, Detroit
Developer: Davis Veterans Village GP, LLC
LIHTC Award: $1,178,471

La Joya Gardens, Detroit
Developer: Southwest Detroit Business Association, Inc.
LIHTC Award: $811,553

Unity Park Rentals V, Pontiac
Developer: Community Housing Network, Inc. 
LIHTC Award: $411,894

Georgia Manor, Flint
Developer: Communities First, Inc.
LIHTC Award: $385,917

Madison Lofts, Grand Rapids
Developer: Madison Lofts LDHA LLC
LIHTC Award: $535,000

Eastern Lofts, Grand Rapids
Developer: MVAH Holding LLC
LIHTC Award: $1,290,800

South Washington Park, Lansing
Developer: Lansing Housing Commission
LIHTC Award: $1,485,000

TEN21 Apartments, Muskegon
Developer: General Capital Development, LLC
LIHTC Award: $1,500,000

Clinton Place, Mt. Clemens
Developer: National Church Residences
LIHTC Award: $1,500,000

Hilltop View Apartments, Dexter
Developer: Avalon Nonprofit Housing Corporation
LIHTC Award: $874,756

Jacklyn Apartments, Belding
Developer: Truverse MI, LLC
LIHTC Award: $521,168

Meadow Ridge Apartments, Marlette
Developer: DeShano Development Corporation
LIHTC Award: $155,391

Scottish Pines Apartments, Alma
Developer: DeShano Development Corporation
LIHTC Award: $156,773

Waterview Apartments - Phase I, Gladstone
Developer: Gladstone Housing Commission
LIHTC Award: $535,227
 

LIHTC are federal tax credits administered by MSHDA through a competitive application process. The Authority holds two funding rounds per year, in October and April, each for roughly half of the available $29.5 million credit. Developers can draw from their tax credit amount annually for 10 years, keeping housing affordable over the long term and sustaining major investments in local communities.