Michigan awards over $13.8 million in Low-income Housing Tax Credits, expects it to generate $126 million in private investments.
The Michigan State Housing Development Authority has awarded more than $13.8 million in Low-Income Housing Tax Credits (LIHTC) to build or rehabilitate 14 affordable housing developments. This round of funding is expected to bring in a total of $126 million in private investment affecting around 1,000 residential units in total. Half of these units are expected to be new construction, while the remaining half (503 units) are existing units that need to be updated with critical safety improvements, increased energy efficiency and modernized amenities. 11 of these projects are lying in newly established Opportunity Zones with 5 projects located in Detroit.
Projects are evaluated based on a set of criteria within Michigan’s Qualified Allocation Plan (QAP), such as proximity to transportation, amenities, education, healthcare, jobs, goods and services etc. Developments located within Opportunity Zones and closer to downtown or to employment centers also score higher under QAP. LIHTC award rounds are held every two years for Michigan state. In Detroit, the following 5 projects received tax credits this summer: