New $10 Million State-Funded Initiative Will Help Employers Invest in Local Housing Solutions
GRAND RAPIDS, Mich. – Michigan’s workforce is growing, but housing options aren’t keeping pace.
To address this challenge, the Michigan State Housing Development Authority (MSHDA) today opened the Employer-Assisted Housing Fund, a bold new state-funded initiative designed to help employers invest in housing solutions for income-eligible households. The Fund launch was announced during a press conference at the Grand Rapids Chamber.
Backed by $10 million from this year’s state budget, MSHDA will administer the Fund, offering direct support to employers willing to invest in housing for local workers. Employers that contribute matching funds—whether through cash investments, land donations, below-market interest loans, or a combination thereof—may qualify for resources through the Fund to help develop new housing options. In return, rental housing developed through the Fund must remain affordable for at least 10 years, and for-sale housing must remain affordable for five years, ensuring long-term impact for Michigan communities. Gov. Whitmer has called for an additional $25 million for the Employer-Assisted Housing Fund in her executive recommendation for the next state budget.
“Addressing our state’s housing shortage takes creativity, investment, and commitment from many partners,” said MSHDA CEO and Executive Director Amy Hovey. “That’s exactly the kind of collaboration that led to the creation of the Employer-Assisted Housing Fund.”
“This new Fund will leverage private investments in housing to help address our housing shortage,” said Brian Calley, President & CEO of the Small Business Association of Michigan. “I know that our members will continue bringing forward smart, creative ideas, so we can confront this crisis together. With MSHDA’s help, we’re going to get it done.”
“Grand Rapids is a quickly growing housing market, but right now, the market isn’t working for everyone,” said Josh Lunger, Vice President of Government Affairs with the Grand Rapids Chamber. “This new Fund will bring employers, local government, developers, and MSHDA together to build housing for income-eligible residents. MSHDA is taking on this challenge, and we are committed to standing with them.”
Michigan’s housing supply has not kept pace with job growth, making it difficult for workers to find affordable homes near their jobs, in turn, creating employer challenges in attracting and retaining talent.
Applications will be reviewed on a first-come, first-served basis. Eligible uses include construction projects, as well as innovative programmatic approaches to housing opportunity such as down payment assistance.
The application window opens today, February 24, and more details can be found on the Employer-Assisted Housing page on MSHDA’s website.
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About MSHDA
The Michigan State Housing Development Authority (MSHDA), established in 1966, provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues.
