Southwest Michigan Affordable Housing Projects Awarded Tax Credits
KALAMAZOO, MI — Millions of dollars in state tax credits are going toward affordable housing projects in Southwest Michigan.
The Michigan State Housing Development Authority announced Friday it is awarding 13 developments with $13 million in low-income housing tax credits. Among the winners are rehabilitation and construction projects located in Kalamazoo, Portage and Niles.
The tax credits allow investors in affordable rental housing to claim a credit against their tax liability each year for 10 years. The U.S. Department of Housing and Urban Development defines affordable housing as a home that costs 30 percent or less of a person’s monthly gross income.
The Village of Kalamazoo Apartments, which plans the rehabilitation of an existing 165-unit apartment complex, is set to receive $1.47 million in credits each year. The credits will help developer Hope Network fund necessary renovations to upgrade 159 units.
Selinon Park in Portage will receive $1.4 million in annual credits. The project includes construction of 75 units of rental housing in three buildings.
Sixty-six units will be designated as affordable housing units, of which 23 will be dedicated for permanent supportive housing. Units will have one to four bedrooms.
Full Circle Communities, of Chicago, received Portage City Council approval to have the site rezoned in anticipation of the development in 2016.
Four Flags Plaza Apartments in Niles is set to receive $1.25 million in annual credits. General Capital Development, LLC and Capital Area Housing Partnership, Inc. will use the credits to rehab the 88-unit apartment building, which offers subsidized housing to seniors.
In a Tuesday statement, U.S. Rep. Fred Upton said the low income housing tax credits will directly help communities rehabilitate and build more affordable housing for Southwest Michigan families.
“Affordable housing is a critical step for countless families looking to put roots down in Michigan,” Upton said. “This is welcome news for our area and will also spur further investment – creating jobs and helping our economy.”
The St. Joseph Republican said the tax credits are an important resource for developers.
According to a September 2017 presentation to the City Commission, Kalamazoo has around 4,200 affordable rental units, but not many are available.
At least 3,000 more units are needed, said Kalamazoo Community Development Manager Dorla Bonner. This might be more than the city can accommodate.
Three Grand Rapids affordable housing projects also were awarded the state tax credits they’ll need to break ground.
Across the state, projects awarded the tax credits are expected to yield 833 units of rental housing for low- to moderate-income individuals and families.