Michigan State Housing Development Authority
August 27, 2021
LANSING, Mich. - A 154-unit development that caters to the needs of an aging population could soon be built on 18 acres of vacant farmland in Grand Traverse County, following action by the Michigan State Housing Development Authority Board during its regular August meeting.
The MSHDA Board allowed an allocation by the Michigan State Treasurer of up to $50 million in private activity bond volume cap to the Economic Development Corporation (EDC) of Grand Traverse County for the purpose of issuing tax-exempt facility bonds to Oakleaf Village of Traverse City, LLC.
The EDC will loan the proceeds of the bond to Oakleaf Village to help finance the acquisition, construction, furnishing and equipping of a senior assisted living community to be known as Meadow Valley in Garfield Charter Township. The community will be comprised of 50 independent living apartments, 60 assisted living and 44 memory care units. At least 20% of the units in the project will remain occupied or held available for occupancy on a continuous basis by individuals whose income is 50% or less of area median income.
"This was a complex deal, and I'm pleased to see the board take action that will increase the availability of safe, decent and affordable places for seniors to live with dignity and receive care," said Gary Heidel, MSHDA acting executive director. "This $50 million construction contract also is expected to have a positive local economic impact through the more than 150 new good-paying construction jobs, the 67 permanent full-time jobs from the development itself, the more than $3.8 million in projected wages and benefits for those workers, and the annual $420,000 in real estate taxes."
In other action, the board approved an increase in loan and tax-exempt bond commitments of $3.9 million to Mack Alter, a proposed 14-unit new construction family apartment complex in Detroit. The MSHDA Board approved the proposal in March 2020, but the global pandemic adversely effected construction costs and the project's ability to move forward.
"Being a smaller development, the cost increases made Mack Alter no longer viable, so we approved a 1% reduction in the mortgage interest rate, and the development team was successful in adding a Community Development Block Grant from Detroit and other financial provisions to make the proposal feasible again," said Chad Benson, MSHDA development director. "The City of Detroit awarding Detroit Housing Commission vouchers to serve the disabled met our mission-related goals, so we were pleased to revisit the proposal and make the financing work."