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MSHDA Board approves 2023 funding for MI-HOPE and changes to modular housing program

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MSHDA Board approves 2023 funding for MI-HOPE and changes to modular housing program

Lansing, Mich. – The Michigan State Housing Development Authority (MSHDA) Board authorized $18.5 million in funding to support the continuation of the Michigan Housing Opportunities Promoting Energy-Efficiency (MI-HOPE) program in 2023.

The MI-HOPE program was first announced in June to provide local government and nonprofit agencies the funding needed to help low-income households make home repairs that will enhance energy efficiency. The federally funded grant program was allocated a total of $30 million by the Michigan Legislature.

In its first funding round, $10 million was allocated to 26 grantees in October, with individual grant amounts ranging from $100,000 to $1 million. Of the remaining $20 million, $18.5 million will be distributed to subrecipient agencies during the 2023 calendar year based on a statewide application process. Overall, $1.5 million will go toward administrative costs related to the program.

“Nearly 40% of Michigan’s residential housing stock was built before 1960, but most residents don’t have the disposable income to make necessary and critical energy efficiency-focused home repairs,” said Tonya Joy, director of MSHDA’s Neighborhood Housing Initiatives Division. “The MI-HOPE program empowers homeowners to make those important home upgrades, which will contribute to a better quality of life, improve the existing housing stock and increase neighborhood home values.”  

The MSHDA Board also approved modifications to and additional funding for the MSHDA Mod Program, which provides resources to communities to develop modular homes to address the lack of affordable workforce housing. Modifications to the program include:

  • An increase in the maximum grant for eligible costs to $250,000 or the single-family maximum sale price (whichever is higher).
  • A requirement that all modular homes in the program are built to include visitability features that make it easier for mobility-impaired individuals to live in and visit the homes.
  • Establishment of an award, called the M3 initiative, targeting rural communities willing to undertake construction of four modular homes simultaneously.

Funding was also approved by the Board to preserve 97 family affordable housing units in Detroit at the Helen O’Dean Butler Apartments. A tax-exempt construction loan in the amount of just over $9 million and a permanent mortgage loan of approximately $5 million will be provided by MSHDA to support property improvements, such as new kitchen cabinets, flooring, and water and energy appliances in units, as well as new roofing, landscaping, signage, and community space upgrades across the property.