MSHDA Board supports developers of affordable housing with QAP amendment

The Michigan State Housing Development Authority (MSHDA) Board approved an amendment to the 2022-2023 Qualified Allocation Plan (QAP) - the document that sets policies and procedures for the administration of the Low-Income Housing Tax Credit (LIHTC) program -- and supports the construction and rehabilitation of affordable housing in Michigan. The move will allow MSHDA to allocate additional credit to developments that have experienced extraordinary construction cost increases and supply chain issues during the last year.

The amendment modifies the Qualified Allocation Plan approved in July with two key objectives: allocate additional 9% LIHTC resources to projects that had previously received an award of credit, and which are experiencing increases in construction costs and supply chain delays due to the COVID-19 pandemic; and continue to prioritize efficient use of the resource while allowing existing projects to continue construction or rehabilitation of affordable housing units.

"Our stakeholders have been very supportive of the amendment, which is a much-needed step designed to keep affordable housing development moving and fill the funding gaps created by increased construction cost and supply chain issues that are out of their control," said MSHDA Rental Development Director Chad Benson.

The amended QAP now goes to Governor Gretchen Whitmer for signing, followed by an additional credit funding round in January.

In other action, the board also authorized a Housing Development Fund (HDF) grant to the Community Economic Development Association of Michigan (CEDAM). The grant, which is not to exceed $340,000, will fund data collection, analysis, capacity building, training and partner engagement services for nonprofit and for-profit affordable housing and community development organizations in line with MSHDA's strategic focus areas.