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
Benton Harbor, MICH. – Southwest Michigan residents are getting 53 new affordable apartments and another 125 updated units with the support of $2.2 million in federal Low-Income Housing Tax Credits (LIHTC) issued by the Michigan State Housing Development Authority.
These LIHTC awards will infuse approximately $23.5 million of private money into the local economy over the next 10 years through the creation and preservation of in-demand affordable housing.
In Benton Harbor, Hayward Wells Estates will be updated using $864,450 in annual LIHTC. General Capital Group will oversee the work to preserve all 81 units as affordable housing. Twelve of the units will be reserved as 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.
“This is tremendous news for our community, and the investment in Benton Harbor will help keep families in safe, well-maintained apartments to help improve their quality of life,” State Rep. Kim LaSata, R-Benton Harbor, said. “There are still people struggling to make ends meet, and by preserving housing like this we are making it possible for them to have an affordable place to live.”
General Capital Group will use an additional $1 million to create a new 53-unit affordable housing complex in Niles that will be known as Berkshire Niles.
The LIHTC award for these two projects will leverage approximately $20.5 million of private money toward the creation and preservation of affordable housing in Southwest Michigan.
Further north, in Plainwell, Medallion Management Inc. will use $305,146 to update and preserve West Town Apartments. The tax credits will go toward making the necessary updates to preserve 44 of the 48 total units as affordable housing with the remainder of the units being market rate units and one employee unit.
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.