$321,095,000 — Negotiated Sale
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$321,095,000 — Negotiated Sale
LANSING, Mich. - Two affordable housing projects in Wayne and Jackson counties were approved to receive more than $10 million in funding support each from the Michigan State Housing Development Authority (MSHDA) during its March board meeting.
The MSHDA board approved an inducement resolution for Woodland Hills Apartments in Jackson to acquire and rehabilitate 125 affordable housing units. Inducement resolutions enable developers to be reimbursed for eligible project expenditures from a tax-exempt bond loan. Each unit will receive comprehensive interior updates, including energy-efficient appliances, fixtures and hot water heaters, as well as new cabinets, counters, plumbing and more. Additional exterior improvements to landscaping, roofing, windows and siding, as well as common area upgrades and elevator repairs will also be conducted. Approximately 27 full-time construction jobs are expected to be created as part of the project.
In Detroit, the MSHDA board authorized the issuance of bonds and a bond-financed loan for the construction of Mid Apartment Projects, a new 61-unit affordable housing development. The developer will reserve 14% of the units for tenants at or below 30% of area median income. The rest of the units will be for tenants with income levels up to 80% of area median income.
"Both of these projects align with MSHDA's vision of providing every Michigander access to quality, safe, affordable housing - which we know is the cornerstone of diverse, thriving communities," said Susan Corbin, MSHDA Board chair and acting director of the Department of Labor and Economic Opportunity. "These projects will serve a critical role in bringing them to life and creating a positive ripple effect in Detroit, Jackson and beyond."
In other rental development activity, the board approved a new mortgage loan for $1.5 million for Minges Creek Village Apartments in Battle Creek for property improvements, including replacement of entry doors and hardware, cabinets, countertops, sinks, faucets, toilets, hot water heaters, flooring and more.
The board also adopted and approved the Annual Fiscal Year 2021-2022 Public Housing Authority (PHA) Plan and the proposed changes to the Administrative Plan for the Housing Choice Voucher (HCV) Program. The annual PHA Plan governs the Authority's administration of the HCV Program as required by the U.S. Department of Housing and Urban Development (HUD). The Administrative Plan changes are to:
"The proposed changes to the plans assist MSHDA in ensuring rental assistance is delivered effectively and efficiently to those most in need. By articulating clearer standards, MSHDA helps program participants better understand their rights and responsibilities under the Housing Choice Voucher Program," MSHDA Chief Housing Solutions Officer Kelly Rose said.
Katie Bach, BachK@michigan.gov
LANSING, Mich. – During its February meeting, the Michigan State Housing Development Authority (MSHDA) Board approved more than $27 million in loans to support the construction of a new affordable housing project in Howell Township.
The board approved a tax-exempt bond construction and permanent mortgage loan for $27,251417, and a permanent subordinated loan for $314,221, to finance the construction of Union at Oak Grove. The development will offer 220 units for income-qualified households with incomes at 60% of the area median income. It will feature 72 one-bedroom units, 108 two-bedroom units, and 40 three-bedroom units, all of which will feature modern amenities such as in-unit washers and dryers and on-site parking for residents and guests.
“At MSHDA, our vision is to give every Michigan resident access to quality, affordable housing as a foundation for them to reach their full potential,” said Chad Benson, MSHDA rental development director. “Projects like Union at Oak Grove that bring new affordable housing stock to the market are incredibly important for bringing that vision to life.”
A measure also was approved to enter into a revolving line of credit with US Bank. The agreement will allow for MSHDA to borrow up to $100 million to fund the purchase of single-family mortgages and down payment assistance loans, like the recently announced MI 10K DPA program, prior to the issuance of long-term financing.
Katie Bach, BachK@michigan.gov
LANSING, Mich. – The Michigan State Housing Development Authority (MSHDA) Board approved inducement resolutions that will pave the way for two affordable housing projects during its January meeting. These resolutions enable developers to be reimbursed for eligible project expenditures from a tax-exempt bond loan.
The board approved an inducement resolution for Carpenter Place Apartments in Pittsfield Township. Carpenter Place is expected to receive a $15 million tax-exempt bond loan to be used for acquisition and substantial rehabilitation of the 151-unit senior living apartment complex. Rehabilitation efforts will include extensive improvements, including common area and in-unit upgrades, mechanical and electrical replacements, and upgrades to exterior components such as the roof and concrete areas. Ninety percent of units will be reserved for tenants at 60% of Area Median Income (AMI) and 10% of units will be reserved for tenants at or below 40% AMI.
The board also approved an inducement resolution for Mid, a new development that will be built in the Brush Park area of Detroit. Mid is expected to receive a tax-exempt bond loan in the amount of $9.8 million for construction of 61 affordable housing units in the City of Detroit. The proposed project will offer nine units at 30% of AMI, and the remaining 52 will average 60% AMI. Mid will also include 127 market rate units. The development is expected to create 43 construction jobs in the community, as well as several permanent positions, including a site manager, maintenance personnel and security.
“Both of these projects support MSHDA’s core mission to create and provide quality affordable housing for low- and moderate-income Michiganders across the state,” said Susan Corbin, MSHDA Board chair and acting director of the Department of Labor and Economic Opportunity. “We know affordable housing is foundational to vibrant, diverse communities, and we’re confident in the positive impact each of these projects will have in Washtenaw County and Detroit when completed.”
LANSING, Mich. – The Michigan State Housing Development Authority (MSHDA) Board has approved several grants and loans to support programs and projects across Michigan.
The board approved the issuance of a $1.17 million Housing Development Fund grant to Habitat for Humanity of Michigan for three programs, with allocations supporting:
The PHR grants approved by the MSHDA Board will be matched by a $200,000 grant from the Consumers Energy Foundation. Together, MSHDA and the foundation have contributed $900,000 to the PHR program to date.
“The missions and efforts of MSHDA and Habitat for Humanity of Michigan are very closely aligned, especially when it comes to providing quality, safe, and affordable housing to Michiganders,” said Susan Corbin, MSHDA Board chair and acting director of the Department of Labor and Economic Opportunity. “The grants provided by MSHDA will play a critical role in ensuring the continued availability of these programs to help people in need in communities all across the state.”
The MSHDA Board also authorized the issuance of $19.6 million in limited obligation bonds as well as 10 loans funded by bond proceeds. The loans will be used to acquire and rehabilitate 10 projects in rural areas throughout the state – including the Upper Peninsula. The projects have 384 affordable housing units. Eight projects are designated as family housing and two are designated as elderly housing. All 384 units will be reserved for tenants at 60% of area median income or less. Seventy percent of the units across all projects will continue receiving Section 521 project-based rental assistance from U.S. Department of Agriculture, which will allow the projects to serve low and very low-income residents in their communities.
“Through these loans, MSHDA is able to preserve and strengthen the current stock of affordable housing options at a time when we can’t afford to lose any housing for low-income individuals and families, particularly in rural areas,” said MSHDA Acting Executive Director Gary Heidel.
The board also approved a $360,000 Housing Development Fund grant to the Community Economic Development Association of Michigan (CEDAM) for data collection and analysis, capacity building, training, and partner engagement service. CEDAM has received MSHDA funds on an annual basis for more than 10 years.
MSHDA Wins the 2020 NCSHA Award for its Below Market Rate Bond Program.
The 2020 NCSHA Award recognizes programs that best support the new construction of affordable rental housing.
LANSING, Mich. – Highlighting its response to the great demand for quality affordable housing, the Michigan State Housing Development Authority (MSHDA) Board approved the blueprint for how the state will administer the next funding round under the Low-Income Housing Tax Credit (LIHTC) program.
After months of public comment and partner collaboration, the 2021 Qualified Allocation Plan strategy aligns with MSHDA’s mission of partnering to provide quality housing that is affordable. It also positions the state to better address current market conditions in urban and rural areas which suffer from a lack of affordable rental housing. Under the plan, MSHDA will hold the next LIHTC funding round on February 1, 2021 to allocate 100% of the 2021 LIHTC ceiling representing approximately $250 million of investment.
The QAP now heads to Governor Whitmer for her approval and signature.
“The changes incorporated into this Qualified Allocation Plan take into account the current social and economic climate and should help bring more affordable housing to the areas of Michigan where it’s needed,” said Susan Corbin, MSHDA Board chair and acting director of the Department of Labor and Economic Opportunity. “By holding a large funding round early in the year, we will help bring much-needed, quality low-income housing developments online sooner.”
The board also approved the use of up to $3 million in Housing Choice Voucher (HCV) administrative fees to help incentivize landlords to open more units to HCV tenants and contracted housing agents to get voucher holders into homes faster. Setting aside funds for damage claims also will allow HCV landlords to recoup up to $3,000 to repair damaged units.
“Investing in best practices like this will help us address our strategic focus area of reducing homelessness,” said MSHDA Acting Executive Director Gary Heidel. “By allocating additional resources, MSHDA can better assist homeless and extremely low-income families by shortening the search time for locating eligible housing. It also encourages new landlords to make their rental units available to voucher holders and encourages current landlords to continue to participate in the program.”
The issuance and sale of a combination of tax-exempt and taxable single-family mortgage revenue bonds totaling about $282 million also met board approval. This action is expected to fund approximately 2,500 single-family mortgage loans, making homeownership more attainable for individuals and families in Michigan.
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.
LANSING, Mich. – The Michigan State Housing Development Authority (MSHDA) Board permanently established the MSHDA MOD Program with a funding allocation of $2 million for the 2020-21 fiscal year, announced $149.8 million in rental housing revenue bonds, and affirmed interest in participating in the HUD Mobility Voucher Demonstration program.
The MSHDA MOD program facilitates and encourages the construction of housing units at an attainable price point, which is typically below $200,000. The pilot program of MSHDA MOD successfully demonstrated that modular homes can be utilized as a catalyst for workforce housing. Making this program permanent advances MSHDA’s mission of creating attainable, affordable housing and increasing access to it in rural and urban neighborhoods. The funding will come from MSHDA’s Housing Development Fund.
“The initial success of the MSHDA MOD pilot program in communities across the state has illustrated the need and viability for this important program on a permanent basis,” said Jeff Donofrio, MSHDA Board chair and director of the Department of Labor and Economic Opportunity. “Continuation of MSHDA MOD will enable more communities to address affordable, attainable, and immediate workforce housing needs.”
The board also approved two bond issues in a total amount of $149,810,000. One rental housing revenue bond will fund the construction or rehabilitation of 15 affordable housing developments, and the other allows the Authority to refund higher interest bonds, creating a savings of approximately $5.3 million.
“These bond issuances are an extremely important part of our work as they directly fund the development and preservation of affordable rental housing or provide savings that can be passed on to address future housing and community development needs in Michigan,” MSHDA Chief Financial Officer Jeff Sykes said.
In addition, the Board approved MSHDA’s pursuit of participating in the Mobility Voucher Demonstration program, offered by the United State Department of Housing and Urban Development (HUD). Through the program, voucher assistance and mobility-related services would be provided to families with children to: create opportunities to move to lower-poverty areas; expand participants’ access to high-opportunity areas; and evaluate the effectiveness of strategies pursued under the demonstration program.
Inclusion would allow MSHDA to implement a housing mobility program by offering mobility-related services to increase the number of voucher families with children living in designated high-opportunity areas. If selected, MSHDA anticipates receiving a minimum of 100 additional vouchers as well as mobility-related service funding to support these efforts.