LANSING, Mich – February 9, 2015 – (RealEstateRama) — Habitat for Humanity Michigan (HFHM) was recently awarded a $1.1-million grant from the Michigan State Housing Development Authority (MSHDA) to assist with the production of affordable housing for low- and very low-income families.
“Assistance from our partners makes long-term affordability a reality for our Habitat families,” said Sandra Pearson, president and CEO of Habitat for Humanity Michigan. “Homes build neighborhoods that build communities, and the economic impact that MSHDA has contributed to these communities through our programs will be felt for generations to come.”
At least 81 families statewide will receive assistance with principal reduction and prepaid costs for a new home through this round of funding. HFHM will provide up to $12,000 per qualified single-family Habitat home plus a reimbursement of $350 per family for pre-purchase counseling.
Habitat partner families are selected based on need, ability to pay, and willingness to partner with the organization. A family’s total household income must be between 30 to 60 percent–not to exceed 80 percent–of area median income as determined by the U.S. Department of Housing and Urban Development (HUD). Partner families must commit to a minimum of 250 sweat equity hours toward their future house or with another Habitat for Humanity project.
“A stable, safe, energy efficient home increases a family’s overall well-being,” said Wayne Workman, acting-executive director for MSHDA. “Supporting the development of affordable housing for low-income families positively impacts the future of our state and the people who live here.”
MSHDA is able to provide this financial support to HFHM through the HOME program, a HUD program designed to increase homeownership and affordable housing opportunities for low- and very low-income Americans.
Federal dollars passed through HFHM are stretched to yield economic impact in our state. For example, the organization raises $8 every $1 invested by MSHDA. Long-term affordability to create a stable, sustainable living situation is Habitat’s ultimate objective, with an impressive foreclosure rate of less than 1 percent.
“The partnership we’ve had with MSHDA has allowed more families in need to have safe, affordable housing. This is the core of our mission and the heart of what we do,” said Pearson.
The Down Payment Assistance (DPA) program is just one way MSHDA partners with HFHM to make housing a reality for low-income residents. MSHDA supports a variety of HFHM programs including the Prison Build Education Program, Capacity Build Program, Affordable Community Mortgage Program, Affiliates In Motion Conference, and Annual Awards Banquet.
“Habitat for Humanity is an excellent example of community partnership that has made an impact in Southwest Michigan and across the state,” said Representative Al Pscholka.
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.
Habitat for Humanity of Michigan is the state support organization for Michigan’s 70 Habitat for Humanity affiliates which serve nearly every county in the state. HFHM’s mission is to increase the capacity of Habitat for Humanity affiliates in Michigan to build or renovate simple, decent homes in partnership with people in need.