$83.8 million grant to help with affordable housing in Michigan

(LANSING, Mich.) On Wednesday, Governor Gretchen Whitmer signed an executive order establishing the Statewide Housing Partnership within the Michigan State Housing Development Authority (MSHDA). The partnership will develop a strategy to implement Michigan’s Statewide Housing Plan and ensure that every Michigander has access to affordable housing that meets their needs. Additionally, Lt. Governor Garlin Gilchrist joined the Michigan Economic Development Corporation in Lansing to announce Michigan Strategic Fund approval of $83.8 million in grant funding across 22 statewide affordable housing and community development projects around Michigan through the Revitalization and Placemaking Program. 

“Every family deserves a safe, affordable place to call home so they have a strong foundation to pursue their potential, but too many Michiganders do not have access to housing in their communities that meets their needs,” said Governor Whitmer. “The Michigan Housing Plan lays out the challenges we face, and today, I am proud to sign an executive order establishing the Statewide Housing Partnership, tasked with developing strategies and fostering partnerships to ensure Michiganders are not overburdened by housing costs. We must work together to tackle Michigan’s housing challenges head-on, and I am confident that this multi-sector partnership will help us  build more affordable housing, make Michigan an even more attractive place to raise a family and grow a business, close equity gaps, and create good-paying construction jobs along the way. Together, we can help Michiganders find an affordable place to call home, and ensure Michigan maintains a competitive edge in attracting and retaining talent to grow our economy.” 

The executive order can be viewed here.  

“The reality is that overcoming the complex barriers to safe, healthy, affordable, and accessible housing for all Michiganders requires coordinated action and new approaches,” said Amin Irving, President and CEO of Ginosko Development Company. “The recent passing of the single largest State investment in Housing and Community Development provides new resources to address the challenges Michigan faces with housing, generating new energy for action and I am thrilled that the Statewide Housing Plan is an inclusive approach to address those challenges directly.” 

“It is more important than ever to invest in affordable housing, multi-use development, and placemaking in our downtowns,” said Dan Gilmartin, Executive Director and CEO of the Michigan Municipal League. “Today’s announcement of the Michigan Statewide Housing Partnership and the Michigan Strategic Fund’s approval of $83 million in Revitalization and Placemaking awards will grow our economy, generate opportunity, and create communities where people want to live, work, and play. I am grateful for the Whitmer-Gilchrist administration’s work on this issue and look forward to continuing our efforts to build a Michigan with prosperous, vibrant, and affordable communities for everyone.” 

“Michigan can’t increase the resiliency of our communities or create an equitable economy without major investments in housing,” said Luke Forrest, executive director at CEDAM. “CEDAM was honored to help inform Michigan’s first Statewide Housing Plan, which offers a critical roadmap to address our state’s housing needs. We look forward to supporting the ambitious goals laid out in the Plan to create more affordable homes, increase access to homeownership, and prevent and end homelessness.” 

Statewide Housing Partnership Background 

Governor Whitmer established the Statewide Housing Partnership as an advisory body within MSHDA. The group will include leaders from state, local, and tribal governments, advocates from nonprofit and community organizations, and representatives from the business advocacy world and finance industry. 

The partnership’s primary responsibility is to develop a strategy to implement the Michigan Statewide Housing Plan released in 2022 and make recommendations to MSHDA on how best to achieve its goals. The plan presented opportunities for organizations to partner on common objectives, including rehabilitating and stabilizing the housing supply, reducing equity gaps and homelessness, and increasing home energy efficiency and weatherization.  

The new Statewide Housing Partnership will lead a coordinated, data-driven, outcome-oriented approach to housing, ensuring that all Michiganders have a safe, affordable place to call home. They will also establish regional consortiums to ensure statewide initiatives build on local efforts whenever possible, and they will keep Michiganders updated on their progress with public-facing communications. 

Michigan Housing Challenges 

Housing that meets people’s needs is critical to attract new businesses and support existing employers and it is the foundation of better education, economic, and social outcomes. Michigan faces a 160,000-unit attainable housing shortage, leading to higher prices for all and housing instability for low-income Michiganders. Housing affordability is also major barrier in Michigan. Before the pandemic, 48% of renters and 18% of homeowners paid too much for housing (over 30% of their income), a ratio that worsened after the pandemic. In addition, Michigan’s housing stock is aging—47% of all housing units in the state were built before 1970.  

The housing shortage and affordability issues disproportionately harm marginalized communities, making it harder for them to pay the bills and put food on the table, especially as prices go up on everyday expenses because of inflation. Investing in housing will grow Michigan’s economy by creating good-paying construction jobs and expanding options for our workforce and small businesses.  

Revitalization and Placemaking (RAP) program 

Approved by the Michigan Strategic Fund to support MEDC’s focus on innovative placemaking and continue to help communities recover from the impacts of COVID-19, the RAP program utilizes $100 million in federal American Rescue Plan dollars to support investments in projects that promote population and tax revenue growth, redevelop permanent place-based infrastructure in downtowns, social zones, and outdoor areas. Today’s announcement includes the allocation of $83.8 million in funds; the remaining awards will be announced at a later date. 

Today’s grants were awarded to communities in every region of Michigan. Organizations like the Target Alpena Development Corporation will use a $4.9 million MEDC RAP grant for the construction of a new two-story, mixed-use building consisting of 15 residential units and five commercial spaces in downtown Alpena. The Paradise Valley Alleyscape projects is part of the Downtown Detroit Partnership grant application, and will use a $700,000 RAP grant to transform an underutilized gateway alley into an art-filled, walkable, vibrant pedestrian space. 

In Lansing, the Walter French revitalization projects is receiving a $5 million RAP grant as part of the city of Lansing’s overall grant application. Led by the Capital Area Housing Partnership, the project will repurpose the former Walter French Junior High School to become a mixed-use, mixed-income project with 76 affordable apartments and two floors of commercial space that will include a childcare center and a community resource center.