More than $3.7 million to provide much-needed support to statewide projects
LANSING, MI – May 10, 2013 – (RealEstateRama) — Scott Woosley, executive director of the Michigan State Housing Development Authority (MSHDA), recently announced nine statewide projects will receive state Housing and Community Development Fund grants.
Money for the projects comes from the $3.7-million Michigan Housing and Community Development Fund, which is administered by MSHDA. The fund was created to support the development and coordination of public and private resources to meet the affordable housing needs of low-income households and revitalize downtown areas and neighborhoods in Michigan. It was established in 2012 as part of the Homeowner Protection Fund, a $97-million fund that set aside money the State of Michigan received directly from servicers involved in the recent foreclosure crisis. In addition to the much-needed counseling services, restitution for victims of foreclosure rescue scams, and assistance for families and veterans, it also allocated money for nine other initiatives, including housing and community development programs.
“These funds were set aside by Governor Snyder and State Attorney General Bill Schuette for the purpose of meeting the affordable housing and downtown revitalization efforts in communities,” Woosley said. “I believe the grants will provide vital resources to help the projects proceed. Together, our aggressive pursuit of new and expanded investments in quality, affordable housing opportunities and community development reflect the bold new course Michigan is embarked upon to rebuild, revitalize and reenergize the economy in every corner of our state.”
The following projects will receive awards:
Bethel Tower LDHALP, $200,000, for Bethel Tower Apartments, 5203 Chrysler Drive, Detroit, MI 48207.
Bethel Tower LDHALP will rehabilitate a 120 unit, 8-story, high-rise elevator apartment building and 26 townhouse units located in the Midtown neighborhood of Detroit as part of a recapitalization project that includes 9% LIHTC, HUD 221d(4) permanent financing and owner cash/equity. The project will provide permanent supportive housing for persons with physical, mental and/or emotional impairments. Local contact: Frank Sinito, 216.520.1250.
Detroit Rescue Mission Ministries, $467,271, for Douglas Permanent Supportive Housing, 91 Glendale, Highland Park, MI 48203. Detroit Rescue Mission Ministries will rehabilitate a 70 unit, three-story building located in Highland Park to provide permanent supportive housing for 70 homeless men. Renovations will include washroom, common area, roof and window upgrades. A HUD Permanent Supportive Housing grant and owner equity provides leverage. Local contact: Aurine Moore, 313.993-4700.
Dwelling Place of Grand Rapids, Inc., $468,379, for The Herkimer project, 309 South Division Avenue, Grand Rapid, MI 49503. Dwelling Place of Grand Rapids, Inc. will acquire and rehabilitate the historic Herkimer Building. A total of 55 one-bedroom units, including 40 supportive housing units, are planned at the site. The project leverages $15.9 million in financing. Local contact: Dennis Sturtevant, 616.855.0410.
Home Renewal Systems, LLC, $450,000, for The Gateway, Fremont Senior Apartments, 204 East Main Street, Fremont, MI 48335. Home Renewal Systems, LLC will utilize a historically significant re-purposed high school building originally built in 1926 to create 38 affordable, energy-efficient, senior apartments, with walkable access to downtown Fremont. The project proposes to leverage a mix of 9% LIHTC, federal historic rehabilitation tax credits and permanent debt from conventional sources to complete the transaction. Local Contact: Shannon Morgan, 866.996.9754.
ICCF Nonprofit Housing Corporation, $475,000, for the LaGrave Apartments at Tapestry Square, 435 LaGrave Avenue SE, Grand Rapids, MI 49503. ICCF Nonprofit Housing Corporation will develop 19 residential units and 3,000 square feet of first-floor commercial square in the southern part of downtown Grand Rapids. The developer plans $3.6 million in leveraged funding from a variety of public and private sources. The project partially satisfies the statutory earmark that requires 25% of funds be allocated for Rental Housing that does not qualify for special population groups or other preferences. Local contact: Jonathan Bradford, 616.336.9333.
Ingham County Land Bank Fast Track Authority, $500,000, for the Ash Street Mixed-Use Development, 124 & 140 Ash Street, Mason, MI 48854. Ingham County LBFTA will develop 12 new residential apartments and 5,000 square feet of first-floor commercial space in downtown Mason. The project leverages $485,000 in conventional debt, and $50,000 in funding from Mason’s Downtown Development Authority. Local contact: Mary Ruttan, 517.267.5221.
LINC Community Revitalization, Inc., $500,000, for the Southtown Square project, 413 Hall Street, Grand Rapids, MI 49507. LINC Community Revitalization Inc. will develop 44 units of mixed-income housing comprised of 24 apartment units in a four-story, mixed-use elevator building with 7,200 square feet of commercial space and 16 townhome units in the Madison Square business district of Grand Rapids. This is Phase II of the Southtown Square development that has already received commitments from the following funding sources: 9% LIHTC, NSP2, NSP3, and City of Grand Rapids HOME funds. Local contact: Jeremy DeRoo, 616.581.2680.
S. Dot Development, LLC, $224,500, for the West Grand Apartments, 3931 McGraw, Detroit, MI 48208. S. Dot Development, LLC will renovate 27 units of mixed-income housing (21 units restricted to < 60% AMI) in a 3-story historic building originally constructed in 1920 along West Grand Boulevard near the I-94 interchange in Detroit. Housing and Community Development funds will be used for pre-development activities with the balance of project funding provided by a City of Detroit HOME funds grant, equity, and permanent financing from the Detroit Development Fund. Local Contact: Shellee Brooks, 313.468.2781.
Uptown Reinvestment Corporation, $500,000, for the Capitol Theatre project, 140 East Second Street, Flint, MI 48502. Uptown Reinvestment Corporation will rehabilitate the historic Capitol Theatre Building in downtown Flint. Additionally, this will include the restoration of the 2,000 seat theatre and 25,000 square feet of office and retail space. The $10 million project will include New Market and Federal Historic Tax Credits, and a variety of other private and public funding sources. Local contacts: Troy Farrah or Tim Herman, 810.767.5141 or 810.600.1410.
About MSHDA
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
Contact:
Katie Bach
Communications
517.335.4786 or 517.643.0308
