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
Lansing, MICH. – Two affordable apartment buildings in the northern Lower Peninsula will receive much-needed updates with the support of $552,892 in federal Low-Income Housing Tax Credits (LIHTC) issued by the Michigan State Housing Development Authority.
These LIHTC awards will infuse approximately $5.6 million of private money into the local economies over the next 10 years through the preservation of in-demand affordable housing.
The Woda Group has plans to update and improve Maple Hill Apartments at 209 Pearl St. in Cadillac. The developer will put $228,535 in annual LIHTC toward making necessary updates to preserve all 24 units as affordable housing. MSHDA estimates that this award will leverage just under $2.4 million of private money towards the preservation of affordable housing in Cadillac.
Huron Beach Apartments in Oscoda will be updated using $324,357 in annual LIHTC. Medallion Management, Inc. will get to work on the 48-unit apartment building located on Pack Drive to improve and preserve the units as affordable housing.
“Michigan’s economy is growing and creating jobs, but there is still work to do,” State Sen. Jim Stamas, R-Midland, said. “This credit is good news for the entire area because it will preserve affordable housing options for families and help create jobs. For a little more than $300,000, this credit will bring in more than $3 million in private investment in Oscoda.”
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.