MichMash: Michigan’s housing authority granted state funds to increase inventory

Back in April, the Michigan State Housing Development Authority (MSHDA) was granted the ability to use $60 million state funds to help increase housing in the state.

Gongwer News Services Alethia Kasben and Zach Gorchow chat with the MSHDA Executive Director, Amy Hovey, to discuss how the MI Neighborhood program can help build more housing and stabilize the market.

In this episode:

• MSHDA’s initiatives based on the MI Neighborhood program
• How Michigan businesses are affected by the housing crisis
• What’s needed to stabilize the housing market in the state

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Historically, MSHDA hasn’t received support from the state, but the $60 million in state funding is giving them resources to help more Michiganders.

Hovey explained that the state funding helps the agency use grants.

“We’re able to do grant programs, which make it easier for folks that aren’t typically in the housing development arena, [to] get involved in utilizing programs,” said Hovey.  

According to Hovey, local businesses were having a tough time with staffing because of the housing crisis in Michigan. They hired workers from out of state or someplace far from the company’s location that would require the employee to relocate. The lack of housing gave businesses a tough time to secure employees.

The funding from MI Neighborhood can change that.

“This state funding is immensely important to be able to meet that demand across the state for all different types of income levels,” said Hovey.

When it comes to the exact funds needed to solve Michigan’s housing crisis, Hovey doesn’t know what that number is, but says, “…without incomes going up, there’s always going to be a gap in what it costs to build versus what the average Michigan family can afford to purchase. So we do need to look at incomes at the same time as housing subsidy.”

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