Mich. awards $11.6M in tax credits to housing projects
The state has awarded $11.6 million in low-income housing tax credits to 13 housing development projects to create and rehabilitate affordable housing units, the Michigan State Housing Development Authority announced Tuesday.
There are four projects in Detroit and one in Dearborn among the awardees in the Low-Income Housing Tax Credits program.
“These tax credits are extremely important for providing the incentive developers need to renovate and construct quality, affordable housing which is in high demand for Michigan families, seniors and people with special needs,” Earl Poleski, executive director of MSHDA, said in a statement.
The tax credits were awarded as part of the spring round of funding for the program. A fall round is to take place in October.
In Detroit, developers of four projects will use a total of $4.4 million in tax credits to rehabilitate 271 units and create 114 new units of affordable housing. During the 10-year lifespan of the tax credits, the four projects are expected to leverage $39.8 million of private money, officials said.
Every two years the state housing development authority releases criteria it looks for when funding projects, said Chad Benson, allocation manager for the Low-Income Housing Tax Credits program.
“Overall, what we’re looking for is a development in an area with a lot of positive site amenities,” Benson said. “Tenants will be able to walk to various places that will enrich their lives.”
In Detroit, new construction project in the Brush Park neighborhood, Brush Park South, will consist of three new buildings containing 58 affordable housing units and 67 market rate units as well as retail space. The developers, SB Brush Park South LLC, RCM Brush Park South LLC and Chesapeake Community Advisors Inc., were awarded an annual tax credit of $1.4 million. According to the developers’ application, the project is scheduled to begin in March 2018 and take 12 months to complete.
Also in Detroit, the Coalition on Temporary Shelter, was awarded an annual $1.05 million in tax credits to rehabilitate and convert the Peterboro Arms at 26 Peterboro into 56 affordable housing units.
American Community Developers Inc, received an annual $721,569 in tax credits to rehabilitate the 74-unit Ryan Court Apartments at 2257 Ewald Circle in Detroit.
The state also awarded $1.1 million in annual tax credits to rehabilitate Roberts III Apartments, a 197-unit development at 3901 Grand River in Detroit.
In Dearborn, $1.5 million in annual tax credits were granted for the Dearborn Town Center Senior, a new affordable housing development on Calhoun. The independent senior community will contain 77 units of affordable housing, according to application from developer, MHT Housing and REDICO/American House Senior Living. Construction is expected to begin in September.
Other projects to receive the tax credits are:
■Garfield Park Lofts, Grand Rapids
Annual LIHTC Award: $934,988
■Abigail Senior Apartments, Lansing
Annual LIHTC Award: $1.2 million
■Port Crescent Apartments, Bad Axe
Annual LIHTC Award: $673,232
■Edmond Senior Apartments, Charlotte
Annual LIHTC Award: $688,586
■Center Street Apartments, Hartford
Annual LIHTC Award: $262,314
■Mill Trace Apartments, Ironwood
Annual LIHTC Award: $356,342