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MSHDA Board approves Qualified Allocation Plan and loan commitments
June 18, 2021
During its June board meeting, the Michigan State Housing Development Authority Board approved the agency's 2021-22 budget, the bi-annual plan for administration of Low-Income Housing Tax Credits (LIHTC) in Michigan, and several financial transactions that create and preserve affordable housing.
The Qualified Allocation Plan (QAP), amended every two years, reflects MSHDA's priorities for allocating Low-Income Housing Tax Credits (LIHTC) for rental housing. The plan was created with extensive partner and public input and addresses the state's highest affordable housing needs and the efficient use of the tax credits. Changes focus on providing urban and rural balance in the distribution of resources, Green building standards, Tribal Housing, disaster credits, overburdened households, deep rent and income targeting, and a commitment to Diversity, Equity, and Inclusion.
"This plan aims to ensure the equitable distribution of resources throughout the state, the production of more units and resource efficiency, greener and healthier housing, as well as a commitment to diversity, equity, and inclusion to inform future QAP policy," said Chad Benson, MSHDA rental development director.
The QAP now goes to Governor Gretchen Whitmer for her review and signature.
The board approved separate loan commitments in the amount of more than $13.7 million for two phases of the Reverend Dr. Jim Holley Residences in Detroit. The development sits within the city's greater downtown and is in a federally recognized Opportunity Zone, an area with a high demand for affordable housing. A building at 9001 Woodward Avenue will be demolished to make way for new construction of 60 family units with first class amenities.
In other action, the MSHDA Board:
- approved a $500,000 loan to Circle Drive I Apartments for minor rehabilitation of the 129-unit family community in the Elmwood area of Detroit.
- adopted an inducement resolution for Cambridge Square of Flint, for the proposed acquisition and rehabilitation of the 160-unit family development in Flint Township. Approving the inducement resolution will allow the project to incur costs necessary for rehabilitating the property. The construction will create an estimated 20-30 temporary construction jobs, and the property will retain roughly 20 professional jobs.
- adopted an inducement resolution to cover costs incurred in the proposed acquisition and rehabilitation of a property on Cherry Hill Road in Inkster. The family and elderly communities on the property will be owned by separate entities. Cherry Hill Townhomes will consist of six, two-story buildings with 36 townhome style family units. The residents will benefit from a comprehensive rehabilitation of the development. Cherry Hill Place has one seven-story tower with 150 one- and two-bedroom elderly apartments. The units will be remodeled or rehabilitated with updates to resident units, common spaces, and exterior and grounds.
"These actions ensure there is an adequate supply of safe, decent and affordable housing preserved for seniors and families with low and moderate incomes in eligible distressed areas," said Gary Heidel, MSHDA acting executive director. "The temporary and permanent jobs generated from these developments also will have a positive ripple effect on the surrounding neighborhoods and their local economies."