Whitmer announces development of 603 affordable housing units across Michigan

Gov. Gretchen Whitmer announced more than $18.9 million in federal support for the development of affordable housing units across the state.

The funding comes from the 9% Low-Income Housing Tax Credit and will create 603 units throughout 13 different projects.

Spread throughout nine Michigan communities, the projects will serve a variety of housing needs, including permanent housing for low-income households, workforce housing, and tribal housing. 

"Today's announcement is part of our commitment to building more housing and making it easier for people to choose Michigan," Whitmer said. "These awards will help lower construction costs on over 600 new housing units across the state."

The LIHTC program is the federal government's largest initiative aimed at financing affordable housing construction. Tax credits are given to the Michigan State Housing Development Authority, which then awards them to private developers who build or rehabilitate low- and moderate-income housing.

The 9% credit is awarded through a competitive application process and subsidizes roughly 70% of a project's eligible costs. Developers who receive a LIHTC award can claim credits against their tax liability for 10 years.

Tony Lentych, MSHDA chief housing investment officer, said the tax credits will help alleviate the growing construction costs and market pressures that make affordable housing construction increasingly challenging.

"These awards will help bridge those gaps, leverage additional investment and create more than 600 new homes for Michigan residents," Lentych said. "Each development represents a partnership and a long-term investment in the strength and economic stability of its community."

Here's the full list of projects: