$20M affordable housing investment in Wayne, Jackson counties approved by MSHDA

Media Contact:
Katie Bach, BachK@michigan.gov

March 25, 2021

LANSING, Mich. - Two affordable housing projects in Wayne and Jackson counties were approved to receive more than $10 million in funding support each from the Michigan State Housing Development Authority (MSHDA) during its March board meeting.

The MSHDA board approved an inducement resolution for Woodland Hills Apartments in Jackson to acquire and rehabilitate 125 affordable housing units. Inducement resolutions enable developers to be reimbursed for eligible project expenditures from a tax-exempt bond loan. Each unit will receive comprehensive interior updates, including energy-efficient appliances, fixtures and hot water heaters, as well as new cabinets, counters, plumbing and more. Additional exterior improvements to landscaping, roofing, windows and siding, as well as common area upgrades and elevator repairs will also be conducted. Approximately 27 full-time construction jobs are expected to be created as part of the project.

In Detroit, the MSHDA board authorized the issuance of bonds and a bond-financed loan for the construction of Mid Apartment Projects, a new 61-unit affordable housing development. The developer will reserve 14% of the units for tenants at or below 30% of area median income. The rest of the units will be for tenants with income levels up to 80% of area median income.

"Both of these projects align with MSHDA's vision of providing every Michigander access to quality, safe, affordable housing - which we know is the cornerstone of diverse, thriving communities," said Susan Corbin, MSHDA Board chair and acting director of the Department of Labor and Economic Opportunity. "These projects will serve a critical role in bringing them to life and creating a positive ripple effect in Detroit, Jackson and beyond."

In other rental development activity, the board approved a new mortgage loan for $1.5 million for Minges Creek Village Apartments in Battle Creek for property improvements, including replacement of entry doors and hardware, cabinets, countertops, sinks, faucets, toilets, hot water heaters, flooring and more.

The board also adopted and approved the Annual Fiscal Year 2021-2022 Public Housing Authority (PHA) Plan and the proposed changes to the Administrative Plan for the Housing Choice Voucher (HCV) Program. The annual PHA Plan governs the Authority's administration of the HCV Program as required by the U.S. Department of Housing and Urban Development (HUD). The Administrative Plan changes are to:

• Include stepfamily and in-laws in the definition of a prohibited relative, when families are searching for a housing unit that may be owned by a relative.
• Consider a family member's unborn child when determining the family's voucher size or unit size eligibility for the HCV and Project-Based Voucher programs.
• Consider smoke detectors and carbon monoxide detectors that are chirping as inoperable and thus a life-threatening condition, even if the device is hardwired and has a battery backup.
• Conduct remote virtual inspections on program units when MSHDA staff or MSHDA housing agent cannot access the unit.  
• Consider properties that receive funding via a competitive process by HUD, such as the Choice Neighborhood Program, to be eligible to receive Project-Based Vouchers.  
• Rely on records of conviction when determining applicant eligibility for the HCV program. In doing so, the review of criminal records will be centralized with MSHDA staff to ensure consistency in final determinations of eligibility.

"The proposed changes to the plans assist MSHDA in ensuring rental assistance is delivered effectively and efficiently to those most in need. By articulating clearer standards, MSHDA helps program participants better understand their rights and responsibilities under the Housing Choice Voucher Program," MSHDA Chief Housing Solutions Officer Kelly Rose said.

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