MSHDA awards $27.9M in tax credits for affordable housing development projects

Eastpointe Commons I in Grand Rapids received a LIHTC award of $1,459,750 for 56 new apartments. Courtesy MSHDA

The Michigan State Housing Development Authority is doling out $27.9 million in low-income housing tax credits to a slew of projects, including several in West Michigan.

Last week, the Michigan State Housing Development Authority (MSHDA) announced the award — its largest in recent history — which will be used to construct new affordable multifamily rental housing and to rehabilitate existing properties for low- to moderate-income Michigan residents.

The funding round will support the construction and renovation of more than 1,400 affordable housing units in rural and urban communities throughout the state. Of the 25 LIHTC-funded projects, 20 involve new construction, creating over 1,000 new affordable apartments. Five existing projects also will see rehabilitation and renovation in about 470 units.

Low-income housing tax credits are federal tax credits administered through MSHDA following a competitive application process. Developers who are recipients of these funds can claim credit against their tax liability annually for up to 10 years, thereby continuing to incentivize investing in affordable housing in local communities.

“These 25 new projects will create an estimated 2,000 jobs, stimulate local economic growth, and bring needed new and improved safe, decent and affordable housing options to areas where it is needed most,” said Chad Benson, MSHDA rental development director.

“When people have an affordable place to call home in their community, they have the dignity, stability and peace of mind knowing one of their basic needs are met,” Gov. Gretchen Whitmer said. “Investments in housing are foundational to continuing our economic jumpstart, and I am grateful to MSHDA for helping hundreds of families find a home and have a launching pad to pursue their potential.”

The development projects receiving LIHTC awards in West Michigan are as follows:

530 Rose, Kalamazoo

Developer: Jon Durham and PS Equities

LIHTC award: $1,034,000

Units: 64 new apartments

900 Division (9%), Grand Rapids

Developer: Ginosko Development Company and United Methodist Community House Inc.

LIHTC award: $1,130,134

Units: 47 new apartments

Avenue II Apartments, Grand Rapids

Developer: LINC UP

LIHTC award: $346,583

Units: 20 rehab and new apartments

Eastpointe Commons I, Grand Rapids

Developer: Hope Network Affordable Independent Living Nonprofit Housing Corporation and Cove Investments

LIHTC award: $1,459,750

Units: 56 new apartments

Eastpointe Commons II, Grand Rapids

Developer: Hope Network Affordable Independent Living Nonprofit Housing Corporation and Cove Investments

LIHTC award: $1,500,000

Units: 62 new apartments

Hartford Terrace Apartments, Muskegon

Developer: Muskegon Housing Commission, Cove Investments LLC and Ethos Development Partners LLC

LIHTC award: $1,440,000

Units: 160 rehab apartments

Marywood Motherhouse, Grand Rapids

Developer: PK Development Group, Third Coast Development and the Dominican Sisters of Grand Rapids

LIHTC award: $1,196,939

Units: 52 new apartments

Royal Coach Apartments, Hastings

Developer: General Capital and Gun Lake Investments

LIHTC award: $1,478,500

Units: 73 new apartments

Union Suites on Coit, Grand Rapids

Developer: Dwelling Place of Grand Rapids and Union Suites Development LLC

LIHTC award: $1,104,000

Units: 52 new apartments

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