Labor and Economic Opportunity
LIHTC awards totaling $11.4 million will improve, increase state’s affordable housing stock
Media Contact: Misty Miller
January 26, 2017
Grand Rapids, MICH. – Three new developments are in the works to provide local residents with 168 additional affordable apartment units in Grand Rapids with the support of $4,258,749 in federal Low-Income Housing Tax Credits (LIHTC) issued by the Michigan State Housing Development Authority.
These LIHTC awards will infuse approximately $42 million of private money into the city over the next 10 years through the creation and preservation of in-demand affordable housing.
Along the Eastern Avenue Corridor in southeast Grand Rapids, the Inner City Christian Federation plans to use more than $1.4 million in annual LIHTC to build two new buildings called 501 Eastern. The development will offer 65 units of affordable housing with 17 of those reserved for Permanent Supportive Housing. PSH is a model that combines low-barrier affordable housing, health care and supportive services to help individuals and families lead more stable lives.
ICCF will use an additional $1.4 million to create 64 new units of affordable housing on the city’s west side. Stockbridge Apartments will feature 51 modern affordable housing units and 13 market rate units at 420 Stocking Ave.
Also on the west side, the former St. James School will be rehabilitated and converted into 52 new affordable housing units. Genesis Nonprofit Housing Corporation will use $1.2 million to turn the old school into St. James Apartments and add an additional 16 town homes. Thirteen apartments will be reserved as PSH units.
Since the LIHTC program began in 1986, it has incentivized affordable rental housing developers to build or rehabilitate more than 20,000 apartments for Michigan families, individuals, seniors and those with special needs.
"The LIHTC Program is a public-private partnership that allows developers to renovate and construct quality, affordable housing for low- and mid-income families and individuals,” said Brian Mills, MSHDA’s interim executive director. “LIHTC is essential to meeting Michigan’s affordable housing needs and serves to boost local economies.”
MSHDA administers the federal tax credits in Michigan according to a Qualified Allocation Plan that outlines specific criteria and eligibility requirements. The QAP also establishes a scoring system to fairly evaluate projects and priorities.
In 2016, the 10-year value of LIHTC in Michigan was calculated to create more than $1 billion of investment statewide.
The Michigan State Housing Development Authority (MSHDA) provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income residents and to engage in community economic development activities to revitalize urban and rural communities.*
*MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds as well as notes to private investors, not from state tax revenues. Proceeds are loaned at below-market interest rates to developers of rental housing, and help fund mortgages and home improvement loans. MSHDA also administers several federal housing programs. For more information, visit www.michigan.gov/mshda