Housing Choice Voucher Program
Information about the Project Based Voucher program.
State and national links to homeless and special housing needs information.
Standards of Design for Preconstruction manual and forms
Low Income Housing Tax Credits (LIHTC)
Information on Direct Lending Parameters, Gap Financing Programs, Equity Bridge Loan Program, Notice of Intent to Apply, LIHTC Application and Exhibit Requirements for Direct Lending Programs, Other Information (Mortgagor and Contractor's Cost Certification Guide and forms, HOME Subsidy Limits, Direct Lending Intake Forms, Contractor Requirements, and the Modified Pass-Through Program), Parameters
Information about the Pass-Through Bond Program
MSHDA HUD Section 3 policy and these guidelines have been prepared to provide information and guidance to Section 3 recipients on how the Michigan State Housing Development Authority (MSHDA) will administer the Section 3 regulations.
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This Get Housing Ready Guide has been developed by the Michigan State Housing Development Authority (MSHDA) to help local and regional leaders identify actionable strategies that can make their communities more attractive to housing developers. The intent is to offer a menu of practical ideas that local governments can consider to reduce barriers, streamline processes, and proactively support housing growth.
This guide is a suggested starting point, not a prescriptive checklist. It presents a range of policy reforms, process improvements, financial tools, and public engagement strategies that have been effective in communities across the state and nation. Local leaders are encouraged to build upon these ideas, tailor them to local needs, and explore additional innovative approaches as part of their housing readiness efforts.
By taking intentional steps toward becoming more development-friendly, municipalities can better attract the investment needed to expand housing options, support economic growth, and ensure that homes are available and affordable for residents across all income levels.
1. Maintain a Development-Ready Property List
Keep an up-to-date inventory of sites suitable for single-family and multifamily development.
Purpose:
1. Allow Single-Family Home Conversions
Simplify zoning codes to permit conversions of single-family homes into duplexes or triplexes without
burdensome approvals.
Steps:
2. Permit Backyard Cottages/Accessory Dwelling Units (ADUs)
Enable homeowners to add ADUs in all residential zones to support multigenerational living
and rental options.
Steps:
3. Legalize Starter Homes
Remove restrictions on smaller (400–800 sq. ft.), affordable homes for first-time buyers and downsizers.
Steps:
4. Eliminate Minimum Lot Size Requirements
Encourage more efficient land use and affordability by removing outdated minimum lot size mandates.
Steps:
5. Repeal Parking Mandates
Reduce costs and allow developers flexibility by eliminating rigid off-street parking requirements.
Steps:
6. Encourage Diverse Housing Types
Promote mixed-use, energy-efficient, and workforce housing through incentives and zoning flexibility.
1. Automatic PILOT (Payment in Lieu of Taxes) Ordinance for Affordable Housing
Offer predictable property tax relief for projects with significant affordable housing components.
Key Features:
2. Housing TIF (Tax Increment Financing)
Use Housing TIF to support redevelopment, especially for brownfield and mixed-income projects.
Municipal Responsibilities:
3. Administer CDBG Grants
Use Community Development Block Grants (CDBG) to support housing development, homeowner repairs,
and infrastructure.
Steps:
4. Establish Housing and Brownfield Redevelopment Authorities (BRA)
Support long-term site planning and access to funding by establishing a BRA.
Actions:
5. Flexible Local and Regional Housing Funds
Partner with philanthropic and impact investors to establish more responsive housing finance tools.
1. Tell the Story of Diverse Housing
Show how diversified housing supports local economies and the local workforce, including teachers, healthcare workers, and municipal employees.
Tactics:
2. Prioritize Housing-Ready Sites
Incorporate housing into master plans and prioritize sites for quick activation, like those certified by the Michigan Economic Development Corporation (MEDC) as Redevelopment Ready Communities (RRC).
3. Champion Public-Private Partnerships (PPPs)
Support true collaboration between municipalities and developers. Reduce barriers such as excessive fees,
engineering costs, and redundant reviews.
1. Understand Development Timelines
Housing projects can take 4–10 months just to close due to incentives and lender underwriting.
Actions:
2. Recognize Financing and Underwriting Complexities
Municipalities should understand:
3. Market Studies and Absorption Rates
Understand how demand affects feasibility and timelines. Delays in absorption can impact financing
and construction pace.
1. Streamline the Site Plan Review and Approval Process
Ensure quick and predictable approvals for all housing types, particularly missing middle and ADU projects.
Steps:
2. Early Utility Coordination
Engage utility providers early in the development process to prevent delays and reduce risk.
Municipal Action:
3. Simplify Fees and Inspections
Streamline administrative procedures related to bonding, permit, tap, and inspection fees.
Steps:
The Housing Readiness Incentive Grant Program provided funding to eligible applicants to implement actions that encourage increasing housing supply and affordability.
Please see the Housing Readiness Incentive Grant Program Communities for awarded grantees.
For questions, email MSHDA-OHS@michigan.gov.
