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MSHDA Board supports Newcomer Rental Subsidy program and development projects to increase affordable housing statewide

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MSHDA Board supports Newcomer Rental Subsidy program and development projects to increase affordable housing statewide

Lansing, Mich. – The Michigan State Housing Development Authority (MSHDA) Board approved a Newcomer Rental Subsidy (NRS) program that will provide temporary support for refugees and other immigrant populations coming to the state. MSHDA also authorized funding for rehabilitation projects for two multifamily properties in New Baltimore and Eaton County, during its April meeting.

Affordable housing is a critical need for newly arriving refugees and for local community partners and sponsors who provide resettlement support. The NRS program will give refugees, asylees and other new populations from areas such as Ukraine, Cuba, Haiti and African countries the opportunity to apply for up to 12 months of rental subsidy assistance, helping ensure families successfully integrate to communities, become self-sufficient, and thrive.

The program will be financed through the Michigan Housing and Community Development Fund (HCDF), administered by MSHDA, with $4 million designated to the Office of Global Michigan (OGM) to manage over a two-year period. The amount of financial support per eligible household will range from about $300 to $500 a month depending on household size.

"In line with the Statewide Housing Plan, one of our key goals at MSHDA is to increase access to safe and affordable housing across Michigan for everyone – including those seeking to build a new life here,” said Amy Hovey, executive director of MSHDA. “This program is truly a win-win, as it addresses the most pressing barrier to refugee resettlement by meeting housing needs while setting up families for success with increased employment and opportunity.”

Beneficiaries must be enrolled in an OGM-funded or equivalent employment placement program, if not already employed. Households’ eligibility will be evaluated periodically to determine continuation of assistance under the program. During evaluations, the beneficiaries will also receive financial and budget education to ensure continuity of rent once the program ends.

In other action, the board approved a $9.2 million loan for the acquisition and rehabilitation of 101 senior units at New Baltimore Place in New Baltimore. The interiors of all 101 units will receive new windows, showers, lighting, and energy-efficient fixtures/appliances and more. Ninety percent of the units will be reserved for tenants who earn 60% of the area median income, while the remaining units will be targeted toward households at 40% or less.

Butternut Creek, a rehabilitation of an existing 100-unit family and senior development in Charlotte, will receive a $9.7 million loan to implement extensive interior improvements alongside exterior improvements. This includes roofing, landscaping and parking repairs. The renovations will allow Butternut Creek to meet Uniform Federal Accessibility Standards and Americans with Disabilities Act accessibility requirements. The project is expected to create 25 temporary construction jobs.