Labor and Economic Opportunity
Statewide LIHTC awards totaling $11.6 million will improve, increase Michigan’s affordable housing stock
Media Contact: Misty Miller
January 26, 2017
Auburn, MICH. – Local residents will soon enjoy updated affordable housing options with the support of $146,188 in federal Low-Income Housing Tax Credits (LIHTC) issued by the Michigan State Housing Development Authority.
This LIHTC award will leverage approximately $1.5 million of private money toward the preservation and creation of affordable housing in the city over the next 10 years.
“This is a great example of what can happen when a community partners with a state agency to directly benefit local families,” State Sen. Mike Green, R-Mayville, said.
DeShano Companies will get to work updating the existing 24 units at Auburn Square Apartments. The tax credits will help the developer, originally based in Bay City, to make the necessary updates to preserve all of the units as affordable housing.
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.