Two downtown Ludington apartment buildings to be constructed using Low-Income Housing Tax Credits
MSHDA awards $11.8 million to 17 affordable housing projects in 12 counties
LUDINGTON, MICH. – (RealEstateRama) — Two new affordable apartment buildings will be constructed in downtown Ludington using Low-Income Housing Tax Credits from the Michigan State Housing Development Authority.
“This is great news for Ludington. Not only will this help several families facing housing problems, this will result in several properties being rehabilitated,” said Sen. Darwin Booher, R-Evart. “I’m glad that MSHDA stepped up to the plate and awarded this crucial funding that will help the Ludington community.”
Both apartment buildings, at 225 Ludington and 200 Loomis, will be situated just a few blocks east of Lake Michigan. Eight of the 30 apartments at 225 Ludington will be set aside for permanent supportive housing and three of those will be designated for the chronically homeless. All of the 30 units at 200 Loomis will be senior housing with half of the homes reserved for residents with 60 percent area median income (AMI) and the other half for those with an AMI of 40 percent.
Construction of the new affordable apartment buildings will generate more than 160 construction jobs, 40 full-time jobs in the commercial space and 4 full-time positions managing the property – two for each apartment building – according to the LC Consultants. The Ann Arbor-based developer was awarded roughly $1.5 million in LIHTC for the two projects.
The federal government provides the tax credits which are administered by MSHDA based on housing needs at the local level. With this round of funding, an estimated 819 units of affordable rental housing will be built or rehabilitated for low- and moderate-income individuals and families across the state.
“The LIHTC Program is a public-private partnership that allows developers to renovate and construct quality, affordable housing,” MSHDA Executive Director Kevin Elsenheimer said. “This program is essential to meeting the housing needs of families, seniors and special needs populations with low or fixed incomes.”
The LIHTC program is the most successful affordable housing production program in U.S. history and spurs community investment. In 2015, the 10-year value of LIHTC in Michigan was calculated to create more than $1.3 billion of investment statewide.
Federal law requires LIHTC be allocated according to a Qualified Allocation Plan (QAP). The process for receiving an award includes an application and competitive scoring.
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:
Misty Miller
MSHDA Communications
517-373-1858
