Michigan housing authority to spend $300M on rehab, development

[Rocko]

Great to see the emphasis on renovation, rehabilitation, and restoration here!

Michigan housing authority to spend $300M on rehab, development

BY GRETA GUEST • FREE PRESS BUSINESS WRITER • April 11, 2009


The Michigan State Housing Development Authority has announced plans to spend $300 million in federal stimulus funds to spur development and rehabilitation of multifamily housing throughout the state.

Its program, which includes tax credits and grants, is one of the first state plans unveiled and is being used as a model for others, said Ethan Handelman, vice president of Boston-based Recap Advisors, a financial advisory firm for the multifamily housing industry.Handelman said this week that Michigan's plan is smart because it gives preference to developments that rehabilitate the existing affordable housing stock.

"Michigan doesn't need new houses, it needs better housing," he said. "Rehabilitation of the existing housing stock should be central, and that's what Michigan has done."

The plan is expected to create 12,000 construction-related jobs, lead to the rehabilitation of 16,000 existing multifamily homes and apartments and generate up to $800 million of development activity when combined with other MSHDA resources.

The program will begin once federal guidelines are available in the coming weeks, said Keith Molin, MSHDA's executive director.

"What this does is give the industry an opportunity to go back to work," Molin said. "It can reactivate the building industry."

The tax credits would also go toward 60 affordable apartment projects already in the pipeline across the state. More than half of the projects are in Detroit, another 10% to 15% are in southeast Michigan and the rest are focused on cities such as Saginaw, Flint, Grand Rapids, Muskegon and Kalamazoo.

Kathy Makino, owner of Shelborne Development in Wayne, hopes to turn three boarded-up apartment buildings in Detroit into livable space.

She has identified projects on Jefferson near the Grosse Pointe border, near Eastern Market and in Palmer Park.

She plans to gut the buildings and rebuild with new drywall, floors, windows and interiors.

Makino said she hopes to start work in the summer. The three projects mean a $24-million investment over a year and jobs for hundreds of workers.

"I give MSHDA a lot of credit. They are being very creative. That's what you need," she said. "I'm really excited about the spur of development and job creation. The need for affordable housing has never been greater."

MSHDA hosts a public feedback session on the plan from 1-3 p.m. Monday at its offices, 735 E. Michigan Ave., Lansing. For more information, go to www.michigan.gov/mshda. To submit a written comment on the plan, e-mail it to mshdarecovery@michigan.gov. Contact GRETA GUEST at 313-223-4192 or gguest@freepress.com.

http://freep.com/article/20090411/BUSINESS06/904110371

[iheartthed]

That's interesting. Will they be focused on any area in particular? Or will this be a regional free-for-all? Although, I guess the priority is naturally tilted to Detroit, and older suburbs/satellite cities...

[French777]

Sounds like Great News to the City!!

[rsa.313]

That's interesting. Will they be focused on any area in particular? Or will this be a regional free-for-all? Although, I guess the priority is naturally tilted to Detroit, and older suburbs/satellite cities...

The tax credits would also go toward 60 affordable apartment projects already in the pipeline across the state. More than half of the projects are in Detroit, another 10% to 15% are in southeast Michigan and the rest are focused on cities such as Saginaw, Flint, Grand Rapids, Muskegon and Kalamazoo.

MSHDA typically sets up a lottery system for these types of projects. you have to qualify first and then winners of the development money are picked randomly. this is open to any developer in any area of the state.