DETROIT, Mich. (Detroit News Watch) – The Michigan State Housing Development Authority has awarded six competitive Low-Income Housing Tax Credit awards to five affordable housing developments in Detroit, nearly half of the 14 total credits awarded in this round statewide. The limited number of 9 percent low income housing tax credits will help create or preserve 536 units of affordable housing across the city, Mayor Mike Duggan and Gov. Gretchen Whitmer announced Monday.
Together, the five projects represent more than $100 million worth of housing investment in the city.
In total, 318 units of affordable housing that were set to expire soon will be extended for another 45 years. The new construction projects will create a total of 235 units, with 218 of them reserved as affordable units, meaning 92% of all new units supported by the credits will be affordable. Many of the new and preserved units will serve residents making between 30% and 80% of the area median income (AMI) or about $16,050 to $42,800 annually.
“If we’re going to make sure everyone in Michigan, no matter their community, has the opportunity to get ahead, we must get to work to ensure safe, affordable housing for everyone,” said Gov. Whitmer. “Because of this partnership with MSHDA and Mayor Duggan’s office, we are now one step closer to that goal. These projects will be critical in helping Detroiters and people all over the state move into affordable homes. It’s good for our families, for our economy, and for the future of our state.”
To accomplish this, Detroit’s Department of Housing & Revitalization worked with developers, which applied for and were awarded a series of 9% LIHTCs. The 9% LIHTC award is the most valuable and competitive affordable housing tool in the country, because it leverages up to 90% in equity to build affordable housing units. It also gives developers the ability to serve families and individuals who are at the lower end of the economic spectrum, including those who have experienced homelessness.
“Detroit’s comeback depends on keeping every resident we have, and attracting new residents, no matter their income, to join them, so preservation and creation of affordable housing is critical to our growth,” said Mayor Mike Duggan. “We are grateful to the Governor and our partners at MSHDA for their support on these projects. Thanks to them, hundreds of Detroiters will be able to afford to stay in their homes and take part in the recovery they have waited so long to see.”
The five developments are spread across several Detroit neighborhoods, including Brush Park, Midtown, Milwaukee Junction and Gold Coast.
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