Woda Group bringing housing diversity to north side of Grand Rapids with LIHTC funds from MSHDA
MSHDA awards $14 million to 20 affordable housing projects in 14 countries
GRAND RAPIDS, MICH. – July 16, 2015 – (RealEstateRama) — Grand View Place will add more housing diversity to the near north side of Grand Rapids on the western banks of the Grand River. Woda Group, Inc. plans to build this 68-unit affordable housing development using Low-Income Housing Tax Credits from the Michigan State Housing Development Authority.
The comprehensive development plan includes a 64-unit four story pavilion building and four city-front townhomes. All units will be visitable and there will be 7 barrier free units.
Woda has been awarded more than $1.2 million in LIHTC for the project.
“These types of strategic investments are critical for the continued growth and prosperity of Grand Rapids,” said Sen. Dave Hildenbrand, R-Grand Rapids. “Ensuring that individuals, regardless of their income, can find safe, affordable and well-built housing is vital not only for their personal success but for the success of our entire community. Our sincere thanks goes out to both the developers and MHSDA for their work on making these projects a reality.”
The new affordable apartments will offer tenants numerous opportunities for walking or biking to activities and amenities, as well as employment opportunities in the downtown, Leonard corridor and the medical mile within under a mile from the property.
To increase connectivity to the residential neighborhood west of the site, Woda has budgeted $25,000 to make aesthetic and lighting improvements to the pedestrian tunnel that provides passage under US 131.
The developer estimates more than 100 jobs will be created through the development of the project.
LIHTC awards are quantified as a single dollar amount, though the developer is able to claim the credits every year for 10 years. So the amount of credit a project will receive is ultimately 10 times more than the original amount. This extended benefit becomes long-term investment in the community.
These housing tax credits are provided by the federal government and administered by MSHDA based on housing needs at the local level. With this round of funding, an estimated 1,134 units of affordable rental housing will be built or rehabilitated for low- and moderate-income individuals and families across the state.
In all, more than $14 million in tax credit awards will help support the development of 20 projects in 14 counties, MSHDA Executive Director Kevin Elsenhemier announced today.
“The LIHTC Program is a public-private partnership that allows developers to renovate and construct quality, affordable housing for low-income families,” Elsenheimer said. “This program is essential to meeting the affordable housing needs of families, seniors and special needs populations in Michigan.”
Calculations made by the National Association of Home Builders estimate that from 2011 to 2014 LIHTC has spurred statewide investment of nearly $105.5 million and created 13,254 Michigan jobs.
The LIHTC program offers financial incentive to construct, rehabilitate and operate rental housing for low-income tenants. Under federal law, LIHTC is required to be allocated according to a Qualified Allocation Plan (QAP). The process for receiving an award includes an application and competitive scoring.
The State Historic Preservation Office (SHPO) is financed in part by a grant from the National Park Service, Department of Interior. The opinions expressed herein do not necessarily reflect those of the Department of the Interior. The Department of the Interior prohibits discrimination on its federally funded assistance programs. If you believe you’ve been discriminated against please contact the Office of Equal Opportunity, National Park Service, 1849 C. St. NW, Washington DC 20240.
The State Historic Preservation Office is part of the Michigan State Housing Development Authority (MSHDA), which 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.
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
Communications
517.373.1858
