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MSHDA launches new housing production program to increase attainable housing stock

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The Missing Middle Housing Program will assist in funding construction costs for rental and for-sale housing developments

Lansing, Mich. – The Michigan State Housing Development Authority (MSHDA) launched a new program today to address the lack of attainable housing and other housing challenges amplified by the pandemic through rehabilitation, construction and investment.

The Missing Middle Housing Program utilizes federal resources allocated under the American Rescue Plan Act of 2021 to provide funding to developers investing in, constructing, or substantially rehabbing properties. The qualifying properties will target residents with household incomes between 185% and 300% of the Federal Poverty Guidelines (FPG) to encourage economic mobility and increase the attainable housing stock of both rental and for-sale properties in Michigan.

“The COVID-19 pandemic exacerbated areas of concern in our state’s existing housing stock,” said Chad Benson, rental development director at MSHDA. “With the launch of the Missing Middle Housing Program, we can collectively address these issues and rebuild Michigan’s housing availability through strategic investments that will grant a large demographic of residents access to quality, safe, attainable housing.”

A total of $50 million was allocated to Michigan for the creation of the Missing Middle Housing Program. $15 million will be available in the first round of funding, which opens for nonprofit developers or nonprofit/for-profit partnership applicants on September 19, 2022. A second round of funding is anticipated to open in spring 2023 for $33 million. At least 30% of the funds must be allocated to rural projects.

To qualify for the Missing Middle Housing Program, applicants must be a tax-exempt organization under section 501(c)(3) of the IRS code of 1986, 26 USC 501, and must be eligible to do business in Michigan with proven experience. The Missing Middle Housing Grant will have a 10-year compliance period to ensure the projects remain attainable for the missing middle demographic.

Interested applicants can find details and a link to the application portal at Missing Middle Housing Program ( or received assistance with their application submission by emailing


The Michigan State Housing Development Authority (MSHDA), established in 1966, provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues.