State creates Affordable Housing Fund

LANSING, MI – The Michigan State Housing Development Authority (MSHDA) announced today the creation of the Michigan Affordable Housing Investment Fund, a new program that will allow MSHDA to encourage local banks and other financiers to support the development and preservation of affordable rental housing in the state through the end of 2009.
 
Beginning Oct. 1 and continuing through Dec. 31, MSHDA may deposit up to $250,000 with any Michigan regulated financial institution making a new investment in Low Income Housing Tax Credits (LIHTC) related to a MSHDA-financed project. A participating bank investing in LIHTCs already receives an opportunity for a return on the LIHTC investment and potential Community Reinvestment Act credit for the investments. This new program adds the prospect of receiving MSHDA deposits as a result of the investment.  
 
The program is part of a broad effort by MSHDA to improve the state’s rental housing stock, make housing costs more affordable, rebuild cities and create jobs.

The Michigan State Housing Development Authority is dedicated to building a thriving and vibrant future for Michigan. MSHDA provides tools and resources to improve people’s lives through programs across the state. These programs assist with housing, build strong neighborhoods, and help create places where people want to live and work. MSHDA’s programs work in four areas: affordable rental housing; supporting homeownership; ending homelessness; and creating vibrant cites and neighborhoods.
 
“Affordable housing and keeping and attracting jobs are major concerns to Americans across the nation,” said MSHDA Executive Director Keith Molin. “Michigan is moving forward to help employers, developers, lenders and families plan their strategies as we create more successful communities.”  
 
Under the terms of the Michigan Community Fund, participating banks can directly invest in a stand-alone MSHDA-financed development or in a LIHTC investment fund that is investing in MSHDA financed developments. An investment in either the 4 percent or 9 percent LIHTC program will be eligible for MSHDA deposits. The properties must be located within the state of Michigan.