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A rendering of Magnus Capital Partners’ 240-unit apartment project planned in Grand Rapids. A rendering of Magnus Capital Partners’ 240-unit apartment project planned in Grand Rapids. COURTESY PHOTO

GR, Kalamazoo housing projects receive $54.8M in state loans

BY Thursday, June 23, 2022 03:55pm

Housing projects in Grand Rapids and Kalamazoo have received loans through the Michigan State Housing Development Authority totaling $54.8 million.

The two projects together will add 466 apartment units, while additional projects in Clawson and Detroit that received MSHDA loans this week will preserve another 300 units.

The HOM Flats at Maynard project in Grand Rapids received construction financing from MSHDA in March, but the volatile cost of materials caused a $7 million increase in hard and soft construction costs. The board authorized additional loans to the developer, Magnus Capital Partners, for $5.3 million for the increased construction costs and an additional $11.1 million for short-term bridge financing. 

Expected to be completed next year, the 240-unit development at 526 Maynard Ave. NW on the city’s northeast side will contain one-, two-, and three-bedroom units as well as a dog park, walking paths, a fitness center and rooftop terraces.

“Efforts to address the shortage of quality affordable housing hinge on the ability to create new affordable housing stock while at the same time preserving and upgrading what already exists,” Chad Benson, MSHDA rental development director, said in a statement. “The resolutions passed by the board this month address both of those areas of need and will go a long way in providing equitable access to affordable housing to those who need it most.”

The MSHDA board also approved two loans totaling $38.4 million for the River’s Edge project in Kalamazoo, which calls for 111 affordable units and 115 market-rate units. Rent at the affordable units will be restricted to 60 percent of the area median income.

$30M home rehab program

MSHDA also is launching the $30 million, federally funded MI-HOPE Program, which will provide residential clean energy improvements for home rehabilitation, assistance to existing owner-occupied homeowners and occupied rental properties for structural and mechanical repairs, and for neighborhood stabilization and enhancement. Commitments and grants of up to $1 million can be issued through the program.

The program targets occupants at income levels at or below 300 percent of the federal poverty level, and is funded through the American Rescue Plan Act.

“This change will expedite the awarding of MI-HOPE Program funds to subrecipient agencies and ensure the authority can meet Treasury’s required deadlines,” Tonya Joy, MSHDA Neighborhood Housing Initiatives Division director, said in a statement. “We are looking forward to launching the program and partnering with local entities to promote energy efficiency within existing housing stock to assist households in need.”

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