Governor Whitmer Announces Funding to Build and Preserve 484 Affordable Rental Homes

Contact: press@michigan.gov

Governor Whitmer Announces Funding to Build and Preserve 484 Affordable Rental Homes 
Latest 9% Low-Income Housing Tax Credit awards support 10 developments across six communities 

LANSING, Mich. – Today, Governor Gretchen Whitmer announced a new round of investments to support affordable housing across Michigan, awarding federal 9% Low-Income Housing Tax Credits (LIHTC) to 10 new construction and rehabilitation rental housing projects in six communities. 

This LIHTC round awards more than $14 million in tax credits, with a total value over the next 10 years of about $141 million. The 10 projects will create 23 permanent jobs, support 808 temporary jobs, and generate a total development investment of over $171 million. The projects will create or preserve at least 484 affordable rental homes. 

“In Michigan, we are making record investments into housing so we can increase supply and lower costs for buyers and renters,” said Governor Whitmer. “Today’s investments statewide will build and protect 484 homes while supporting more than 800 good-paying construction jobs. Together, let’s build, baby build more housing and make our communities better places to live, work, and invest.” 

“Every day at MSHDA, we’re focused on expanding Michigan’s housing supply, because more homes mean lower rents and more options for Michiganders,” said Tony Lentych, MSHDA Deputy Director and Chief Housing Investment Officer. “By investing in new development and rehabilitation of existing properties, we’re helping ease the pressure on the housing market and bringing stability and opportunity to more communities across the state.” 

LIHTCs are federal tax credits allocated by MSHDA following a competitive application process. Developers can claim credit against their tax liability annually for up to 10 years. 

The following projects received LIHTC awards: 

130 E. Grand Boulevard Apartments, Detroit – Credit Awarded: $1,650,000 

This is a new affordable housing development sponsored by Communities First, Inc, and Church of the Messiah Housing Corp. With an expected total development cost of $25,841,705, the project is financed through a combination of 9% LIHTC and a permanent loan from JPMorgan Chase Bank. The project will feature 32 one-bedroom and 18 two-bedroom units available to tenants earning between 30% and 80% of the Area Median Income (AMI), plus four market rate units. Nine units will receive project-based vouchers through the Detroit Housing Commission. Nineteen units will be designated as permanent supportive housing and will be supported by MSHDA rental assistance vouchers. The development of 130 E. Grand Boulevard Apartments is expected to create five permanent and 65 temporary jobs. 

Allen Crossing III, Muskegon – Credit Awarded: $1,273,492  

This is a new affordable housing development sponsored by Spire Development, Inc., the Muskegon Heights Housing Commission, and Little River Development, LLC. With an expected total development cost of $11,911,262, the project is financed through a combination of 9% LIHTC and a permanent loan from RiverHills Bank. Upon completion, the development will offer 42 one- and two-bedroom units for households earning between 30% and 80% of AMI. The development of Allen Crossing III is expected to create 63 temporary jobs and two permanent positions. 

Alpine Senior Apartments, Grand Rapids – Credit Awarded: $1,410,000 

This is a new affordable housing development sponsored by Volker Development, Inc, Little River Development, LLC, and Equity First Community Development, LLC. With an expected total development cost of $16,054,884, the project is financed through a combination of 9% LIHTC and a permanent loan from Merchants Capital. Upon completion, the development will offer 52 one- and two-bedroom units for households earning between 30% and 70% of AMI with 10 project-based rental assistance vouchers from the Grand Rapids Housing Commission. The development of Alpine Senior Apartments is expected to create 58 temporary jobs and 3 permanent positions. 

Brown City Homes, Brown City - Credit Awarded: $743,058 

This is a new affordable housing development in Brown City sponsored by Maple Valley Real Estate, LLC and Cove Investments with an expected total development cost of $6,910,542 which will be financed through a combination of 9% LIHTC and a permanent loan from Cinnaire. This project will consist of 27 single family modular home units. These will consist of six two-bedroom units, 15 three-bedroom units and six four-bedroom units. The units will be available to individuals earning between 30% and 80% of AMI. Additionally, tenants will have the option of purchasing these homes at the end of the 15-year LIHTC compliance period. The development is expected to create two permanent and 21 temporary jobs. 

Froebel Place, Muskegon – Credit Awarded: $1,285,000 

This is a new affordable housing development in Muskegon, sponsored by Samaritas, Garrett Family Community Partners and Little River Development, LLC. The project is expected to have a total development cost of $16,134,643, financed with 9% LIHTC and a permanent loan from Mercantile Bank. The project will feature two studio, 35 one-bedroom, six two-bedroom and three, three-bedroom units available to tenants earning between 30% and 80% of AMI. Seven units will receive project-based rental assistance vouchers through the Muskegon Housing Commission. The Froebel Place project is expected to create one permanent and 50 temporary jobs. 

Lighthouse Ridge Apartments, South Haven Township - Credit Awarded: $1,500,000 

This is a new affordable housing development sponsored by Wallick Development, Inc, Bogan Asset Management, LLC, and Jigwe, LLC. With an expected total development cost of $15,641,873, the project is financed through a combination of 9% LIHTC and a permanent loan provided by Merchants Capital. Upon completion, the development will offer 52 two- and three-bedroom units for households earning between 30% and 80% of AMI. The development of Lighthouse Ridge is expected to create 60 temporary jobs and two permanent positions. 

Northern Pines, Battle Creek – Credit Awarded: $1,650,000 

This is a new affordable housing development sponsored by UP Holdings, Inc, and the Battle Creek Housing Commission. With an expected total development cost of $16,991,312, the project is financed through a combination of 9% LIHTC and a permanent loan from IFF. The project will feature 55 one-bedroom units available to tenants earning between 30% and 60% of AMI, plus one employee unit. Forty-six units will receive project-based rental assistance vouchers through the Battle Creek Housing Commission. Twenty-eight of the voucher units will be designated as permanent supportive housing. The development of Northern Pines is expected to create six permanent and 100 temporary jobs. 

Union Suites on Coit II, Grand Rapids – Credit Awarded: $1,469,300 

This is the second phase of the new affordable project in Grand Rapids known as Union Suites on Coit and is sponsored by Union Suites Development LLC, Dwelling Place of Grand Rapids, Little River Development LLC and Bitter Water Edge Water Development LLC. The phase is expected to have a total development cost of $17,765,538, financed with 9% LIHTC and a permanent loan from Churchill Mortgage Investment, LLC. This phase will feature 20 one-bedroom units, 21 two-bedroom units and 11 three-bedroom units for tenants earning between 30% and 80% AMI. Additionally, eight units will receive project-based rental assistance vouchers through the Wyoming Housing Commission. This phase is expected to create 1.5 permanent and 191 temporary jobs. 

Villages of Parkside – Phase III, Detroit – Credit Awarded: $1,565,000  

This will be the third phase in the redevelopment of the existing Villages of Parkside community in Detroit. The project will be sponsored by Ginosko Development Company and Infinite Horizons Group, Inc. This phase is expected to have a total development cost of $22,903,159, financed with 9% LIHTC and a permanent loan from Citibank. This phase will include 10 one-bedroom, 23 two-bedroom, 16 three-bedroom and five four-bedroom units. These units will be available for tenants earning between 40% and 60% of AMI. Additionally, 27 units will receive project-based rental assistance vouchers from the Detroit Housing Commission. This phase is expected to create 130 temporary jobs. 

Villages of Parkside – Phase IV, Detroit – Credit Awarded: $1,570,000 

This will be the fourth phase in the redevelopment of the existing Villages of Parkside community in Detroit. The project is sponsored by Ginosko Development Company and Infinite Horizons Group, Inc. This phase is expected to have a total development cost of $21,031,305, financed with 9% LIHTC and a permanent loan from Citibank. This phase will include 10 one-bedroom, 23 two-bedroom, 16 three-bedroom and five four-bedroom units. These units will be available for tenants earning between 40% and 60% of AMI. Additionally, 25 units will receive project-based rental assistance vouchers from the Detroit Housing Commission. This phase is expected to create 117 temporary jobs.

 

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