Several West Michigan housing projects were among 25 developments statewide to receive the latest round of Low Income Housing Tax Credits from the Michigan State Housing Development Authority.
Six housing projects in Grand Rapids were awarded a total of $6.7 million. Other West Michigan projects that were awarded LIHTC funding are in Kalamazoo, Muskegon, Hastings, Coldwater and Big Rapids.
A total of $27.9 million was awarded in this latest round of LIHTC funding — the largest amount awarded in recent years — that will support the construction and renovation of more than 1,400 affordable housing units across the state. The funding is administered by MSHDA and allows developers to claim credit against their tax liability annually for up to 10 years.
“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,” Chad Benson, MSHDA rental development director, said in a statement.
Of the 25 LIHTC-funded projects, 20 will involve new construction and the creation of 1,000 new affordable apartment units. Five existing projects that received funding will rehabilitate and renovate about 470 total units.
Developers and housing experts have said creating affordable housing projects without LIHTC funding is extremely difficult. The credits are awarded in a competitive process that typically has two funding rounds annually.
“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 in a statement. “Investments in housing are foundational to continuing our economic jumpstart and I am grateful to MSHDA for helping hundreds of families find homes and have a launching pad to pursue their potential.”
The following Grand Rapids projects received the latest LIHTC funding:
- Ginosko Development Co. and United Methodist Community House Inc. received $1.13 million for the development of 47 affordable units.
- LINC UP received $346,583 for the rehabilitation of 20 units.
- Hope Network Affordable Independent Living Nonprofit Housing Corp. and Cove Investments LLC received $1.46 million for the construction of 56 units, as well as 62 additional units in the second phase of construction.
- PK Development Group LLC, Third Coast Development LLC and the Dominican Sisters of Grand Rapids received nearly $1.2 million for the development of 52 new units.
- Dwelling Place of Grand Rapids and Union Suites Development LLC received $1.1 million for the creation of 52 new apartments.