The Michigan State Housing Development Authority (MHSDA) has announced the awarding of tax credits for Andy’s Place in Jackson and seventeen other projects in Michigan.
These projects will provide affordable housing options for a variety of populations, including individuals recovering from addiction, low- to moderate-income Michiganders and homeless youth.
In the latest round of federal Low-Income Housing Tax Credits (LIHTC) awards, MSHDA will allocate $15,017,379 to fund major renovation and construction projects to build or rehabilitate 977 apartment units, Executive Director Earl Poleski announced today.
“We have seen some really thoughtful, strategic plans for high-quality affordable housing in this funding round,” Poleski said. “There is an overall commitment to serve the whole person through housing—whether it’s homes closer to where they work, homes for underserved populations or homes with significant supportive services like Andy’s Place—we’re creating housing for everyday people.”
Andy’s Place in Jackson is the result of a dream and hard work by Mike Hirst, founder of Andy’s Angels, a recovery and support group named for Mike’s son, Andy Hirst. Andy died from a heroin overdose in 2010 and Mike started the non-profit to provide support for families dealing with addiction.
Andy’s Place is a highly anticipated new construction project that will provide long-term care for individuals struggling with opioid and other substance abuse disorders. The recovery housing project will consist of 50 low-income units with permanent supportive services for people recovering from addiction and their families. MSHDA allocated an annual tax credit amount of $1.2 million, which will leverage approximately $11 million of private investment in Jackson.
The center, to be built at 2388 West Michigan Avenue in Jackson will provide longer term care than is typically available. Hirst believes short term programs of 30, 60 or 90 days are not long enough to provide the treatment needed.
Demolition has begun on the former Odd Fellow & Rebekah complex at 2388 West Michigan Avenue and construction of the new facility is expected to begin in Spring, 2019. The center will consist of two new buildings, a three story, 42,000 square foot structure housing 39 single-bedroom units and a 13,000 square foot building with two stories and 11 two-bedroom family units.
Funding is currently being arranged through private and public partnerships assisted by the MHSDA tax credits.
West Michigan developer Dwelling Place will use a collective $1.6 million in LIHTC to construct Franklin Apartments and Grandville Apartments. These two affordable housing projects will be part of Plaza Roosevelt, a neighbor-driven, strategic collaboration between eight partners to transform a two-block area along Grandville Avenue SW and Franklin Street in Grand Rapids. The 5.5-acre site will be further developed with a new high school, expanded medical services and commercial space, in addition to the rental units.
“The Plaza Roosevelt plan is remarkable because it’s an affordable housing plan that’s greater than the sum of its parts,” Poleski said. “This project will strengthen health, education and economic outcomes in the area. I’m proud of our partners for gathering local input and creating infrastructure that residents of the Roosevelt Park neighborhood need.”
The combined investment from the two Plaza Roosevelt affordable housing projects will leverage approximately $14.2 million of private money in Grand Rapids.
A third notable project in this funding round is the Ruth Ellis Center (REC) in Detroit. Full Circle Communities, Inc. will use more than $1.4 million in LIHTC to develop 42 units of affordable housing in Detroit’s North End. Most of the apartments—36 units—will be designated as permanent supportive housing for homeless youth or those who are at risk of becoming homeless. The Center’s namesake, Ruth Ellis, was the first woman in Detroit to own her own printing company and was an ardent social activist. Ellis died in 2000 at the age of 101. This tax credit award will leverage approximately $13.5 million of private investment in Detroit.
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. Developers can draw on their tax credit amount annually for 10 years, keeping housing affordable over the long term and sustaining major investments in local communities.
“Without the incentive of these federal tax credits, we simply would not be able to maintain and grow Michigan’s housing infrastructure for our low- and moderate-income folks,” Poleski said.
The 18 projects that earned LIHTC awards in the October 2018 funding round are:
Andy’s Place Apartments, Jackson
Developers: AHPA, LLC c/o Milner and Caringella, Inc. and Community Action Agency
LIHTC award: $1,200,804
REC Center, Detroit
Developer: Full Circle Communities, Inc. and Ruth Ellis Center, Inc.
LIHTC award: $1,480,180
Orchestra Place Apartments, Detroit
Developer: Laurence S. Tisdale
LIHTC award: $526,758
Parkview Place Apartments, Detroit
Developer: MHT Housing, Inc.
LIHTC award: $1,273,125
Peterboro Place Apartments II, Detroit
Developer: Detroit Central City (dba CCIH) and Communities of Hope
LIHTC award: $592,063
Franklin Apartments (Plaza Roosevelt), Grand Rapids
Developer: Dwelling Place
LIHTC award: $823,620
Grandville Apartments (Plaza Roosevelt), Grand Rapids
Developer: Dwelling Place
LIHTC award: $806,058
The Edge Flats on Seward, Grand Rapids
Developer: Commonwealth Management Corporation
LIHTC award: $812,627
Ferguson Apartments, Grand Rapids
Developer: Dwelling Place
LIHTC award: $1,399,496
Tapestry Square Senior Living, Grand Rapids
Developer: ICCF Nonprofit Housing Corp and Chesapeake Community Advisors
LIHTC award: $1,500,000
West Garfield Apartments, Grand Rapids
Developer: LINC Up Nonprofit Housing Corporation
LIHTC award: $604,944
Harbour Pointe, Montague
Developer: Hollander Development Corporation
LIHTC award: $272,487
Hickory Way Apartments Phase II, Ann Arbor
Developer: Avalon Nonprofit Housing Corporation
LIHTC award: $965,159
Maple Grove Apartments, Prudenville
Developer: DeShano Development Corporation
LIHTC award: $152,539
Nottingham Apartments, Farwell
Developer: DeShano Development Corporation
LIHTC award: $152,440
Niles Post Office Apartments, Niles
Developer: General Capital Development, LLC
LIHTC award: $1,366,982
Rivers Edge, Lincoln Park
Developer: Community Care and Cove Investments
LIHTC award: $738,361
Whitehall II Apartments, Whitehall
Developer: T J Acquisitions, LLC
LIHTC award: $349,736