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MSHDA Board approves $321M in bond deals and up to $11M for affordable housing development
May 24, 2021
The Michigan State Housing Development Authority (MSHDA) Board approved the issuance and sale of rental housing revenue bonds, funding for an affordable housing project, and increased investment in three others during its May meeting.
The board approved two bond issues in a total amount of $321 million. One will fund the new construction of 2,100 units of quality, affordable housing and the other will refund higher expense debt.
"These bond issuances are an extremely important part of MSHDA's work as they directly fund the development and preservation of affordable rental housing, which is in great demand across the state," said Susan Corbin, MSHDA Board chair and acting director of the Department of Labor and Economic Opportunity.
The MSHDA Board authorized the issuance of bonds and a bond-financed loan not to exceed $11 million for the acquisition and rehabilitation of 125 affordable housing units at Woodward Hills Apartments in Jackson. The property, comprised of 75 family units and 50 elderly apartments, will reserve 90% of the units for households with incomes at or below 60% of area median income. The remaining 13 units will be reserved for households with incomes at or below 40% of area median income. The project is expected to receive over $840,000 in equity through the 4% Low Income Housing Tax Credit.
"It is important to approve projects that improve and preserve affordable housing for all sectors of Michigan's population, including those that serve the elderly," said Chad Benson, MSHDA's rental development director. "We continue to explore all aspects of senior housing, since many elderly households need housing geared towards their lifestyle. Our goal is to help fund rental projects that help ensure those needs are met."
The board also awarded additional funding to three projects that were previously approved for MSHDA loans:
- Brentwood Apartments in Belding received a more than $520,000 increase in its construction mortgage loan and more than $135,000 increase in its permanent mortgage loan.
- Carriage Place Apartments in Pontiac was approved for approximately $1.4 million increase in its construction mortgage loan and just over $1.9 million increase in its permanent mortgage loan.
- Greenbriar Apartments in Greenville was provided a more than $440,000 increase in its construction mortgage loan and an approximately $114,000 increase in its permanent mortgage loan.