Skip to main content

MSHDA Board approves loans for rental development projects and lays groundwork for Housing and Community Development Fund

Media Contacts:
Katie Bach, BachK@michigan.gov  
VicariA@michigan.gov

 

MSHDA Board approves loans for rental development projects and
lays groundwork for Housing and Community Development Fund 

 

LANSING, Mich. – In its October meeting, the Michigan State Housing Development Authority (MSHDA) Board approved loans for six affordable housing development projects, eased housing agents’ inflationary costs, and delegated authority to the acting executive director to approve loans and grants associated with the Housing and Community Development Fund.

“These approved development projects put us well on our way to hitting Governor Whitmer’s goal of having 75,000 new or rehabbed housing units in the next five years,” said Susan Corbin, MSHDA Board chair and director of the Michigan Department of Labor and Economic Opportunity. “It’s also exciting to hear about another program coming together that has not been funded in the last several years -- the Housing and Community Development Fund -- and just knowing the impact this funding will have in communities across the state.”

Detroit will soon see two new developments with 93 affordable housing units. 
The board also approved funding to rehabilitate 410 existing affordable rental units in Detroit and Lansing. The construction projects are expected to create hundreds of temporary jobs and about a dozen permanent ones.

Rental development projects approved for funding:
   • Campbell Street Apartments. This new construction project will use approved loans of about $11 million to create 40 affordable family housing                units in Detroit.
   • Cathedral Arts Apartments. With $19.5 million in MSHDA funding, this Detroit-based new construction development will feature 53 two-bedroom            apartment units for families and roughly 6,700 sq. ft. of Woodward-facing commercial space (which was not part of the approved financing  package). 
   • Jefferson Square Apartments. This 180-unit, 32-building apartment complex for families located in Detroit was approved for about $43.7 million in l        loans for property rehabilitation work, including new interior/exterior doors, windows, flooring, kitchen cabinets, bathroom fixtures, appliances and          more. 
  • McDonald Square II. Located in Detroit, this 180-unit, 27-building multifamily apartment complex for Section 8 tenants was approved for loans                   amounting to about $49 million. The funding will be used for property rehabilitations, including fixing roadways and parking, sidewalks and fencing,           new light fixtures, doors, flooring, and numerous in-unit upgrades. 
  • The Porter. The $13 million in approved funding will be used to remodel or rehabilitate the Lansing property’s 98 senior residential units, electrical             and plumbing systems, common areas and more. 
  • Van Dyke Center. This 200-unit, eight-building complex for families and the elderly in Detroit was approved for approximately $45 million for interior         and exterior rehabilitations, such as new windows, vinyl siding, shingles, flooring, kitchen cabinets and appliances. 

“A significant portion of our housing stock is aging and in need of improvements to bring them up to today’s standards,” said Chad Benson, MSHDA rental development director. “Not only will this funding help enhance the housing landscape, but it also will improve the lives of individuals and families who rely on MSHDA for access to safe, decent and affordable housing.”  

In other action, the board:
   • Delegated authority to the acting executive director to approve up to $50 million in loans and grant commitments coming under the new Housing             and Community Development Fund (HCDF). The HCDF was federally funded utilizing the United States Department of the Treasury American Rescue        Plan Coronavirus State and Local Fiscal Recovery Funds, which the Michigan Legislature appropriated to MSHDA. The goal of the fund is to expand              access to affordable and attainable housing for populations or regions disproportionately impacted by the COVID-19 pandemic. The HCDF Program          will support priorities within Michigan’s Statewide Housing Plan and will invest in workforce development, homeownership, housing access and                  stability, preventing homelessness, supportive housing, and affordable housing rental development.
  • Approved a contract amendment allowing MSHDA to provide approximately $1 million more annually in federal HUD administrative fees to                        contracted housing agents that administer the Housing Choice Voucher (HCV) program on behalf of MSHDA. The increase in funding will be used to            ensure the needs of HCV program participants and landlords are met, HCV program units comply with Housing Quality Standards (HQS) inspection            requirements, and that staffing levels are adequate to meet normal operations.

About MSHDA 
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. 


###