The Sanctuary in Detroit Among 13 Statewide Projects Receiving Housing Tax Credits
Read full article at MSHDA
LANSING, Mich., Jan. 30, 2018 – Affordable housing stock across Michigan will soon grow with a new round of tax credits to fund major renovation and construction projects. The Michigan State Housing Development Authority is awarding 13 developments with just over $13 million in Low-Income Housing Tax Credits (LIHTC), Executive Director Earl Poleski announced today.
These projects will yield 833 units of rental housing for low- to moderate-income individuals and families.
“Overall, we estimate that this round of awards will leverage more than $160 million in private investment for Michigan,” Poleski said.
For example, The Sanctuary in Detroit is a new state-of-the-art building planned for the site of the former Detroit Police Department’s 7th Precinct on Mack Avenue. The project will feature 42 one-bedroom units of permanent supportive housing (PSH) for men and women, plus an attached but separate emergency shelter for 55 homeless adult women. Services at the Sanctuary Shelter will include mobile crisis outreach, mental health treatment, addiction prevention and treatment, primary medical services, skills training and much more. Residents living in the PSH units also will have access to these services.
Together with another Detroit project that earned LIHTC in this funding round, the Pablo Davis Elder Living Center, about $11.1 million of private money will be leveraged in Detroit during the lifetime of the tax credits.
LIHTC are federal tax credits administered by MSHDA through a competitive application process. The Authority holds two funding rounds per year, in October and April, each for roughly half of the available $23 million credit.
“Housing tax credits are an important resource for developers to leverage when planning to rehabilitate or build new quality affordable rental housing in Michigan,” Poleski said. “Without this incentive, we simply would not be able to meet the state’s housing infrastructure demands for those most in need.”
The 13 projects that earned LIHTC awards in this funding round are:
Pablo Davis II, Detroit
Developer(s): Bridging Communities, Inc / MHT 147
LIHTC Award: $451,066
The Sanctuary, Detroit
Developer(s): MHT Housing, Inc./Neighborhood Service Organization
LIHTC Award: $800,000
415 Franklin, Grand Rapids
Developer(s): ICCF Nonprofit Housing Corp and Chesapeake Community Advisors
LIHTC Award: $1,085,629
Pine Avenue Apartments, Grand Rapids
Developer(s): Dwelling Place of Grand Rapids NPHC
LIHTC Award: $716,669
Seven45 Stocking, Grand Rapids
Developer(s): The Woda Group, Inc.
LIHTC Award: $924,000
Four Flags Plaza Apartments, Niles
Developer(s): General Capital Development, LLC and Capital Area Housing Partnership, Inc.
LIHTC Award: $1,259,068
Clark Commons, Flint
Developer(s): Norstar Development USA, LP, and Flint Housing Commission
LIHTC Award: $1,500,000
Francis Senior Lofts, Jackson
Developer(s): MV Affordable Housing, LLC and Jackson Housing Commission
LIHTC Award: $831,920
Village Of Kalamazoo Apartments, Kalamazoo
Developer(s): Hope Network
LIHTC Award: $1,470,782
Jasperlite Senior Housing, Ishpeming
Developer(s): G.A. Haan Development LLC and Community Action Alger-Marquette
LIHTC Award: $670,801
Reed City Apartments, Reed City
Developer(s): PK Development Group, LLC
LIHTC Award: $468,078
Swift Lane, Ann Arbor
Developer(s): Norstar Development USA, LP and Ann Arbor Housing Commission
LIHTC Award: $1,487,000
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.