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Applications open for $10 million state workforce housing program

Three people stand in business attire in a conference room.
Dustin Dwyer
/
Michigan Public
Josh Lunger, vice president of Government Affairs for the Grand Rapids Chamber, Amy Hovey, executive director of the Michigan State Housing Development Authority and Brian Calley of the Small Business Association of Michigan at an event announcing the launch of the state's $10 million workforce housing fund.

The state is now taking applications to award up to $10 million in matching funds for businesses that want to help their workers get housing.

The money was approved in last year’s state budget.

“I do think it’s going to go quickly,” said Amy Hovey, executive director of the Michigan State Housing Development Authority, at an event in Grand Rapids Monday morning.

The state had previously announced the program, but applications for funding weren’t open until 9 a.m. Monday morning. Hovey said she wasn’t sure if any businesses had submitted applications on the morning of the first day. She said most will probably take some time to look over the application first.

Eight million dollars of the fund is available for large businesses, with two million reserved for small businesses. Large businesses can receive up to $2 million per project, while smaller businesses can receive a maximum of $500,000

MSHDA will approve the applications on a first-come, first-serve basis. But it said in plans posted online that only one project will be approved per city, town or village.

The governor has proposed expanding the program from $10 million this year to $25 million in the upcoming budget.

Hovey said in the current round, there’s no guarantee the money will be spread out across the state.

“Because it’s such a small dollar amount and we really wanted to prove the concept, we didn’t want to put those restrictions on it,” Hovey said. “ However if we get some additional money from the state - this 25 million dollars comes - we will try to do a more equitable distribution across the state.”

Hovey announced the opening of the application window at an event at the Grand Rapids Chamber.

Josh Lunger, vice president of government affairs at the chamber, said he’s not aware of local businesses that were submitting applications on the first day, but he said he’d be spreading the news to see if the funds could help any stalled projects move forward.

“A lot of this is just filling the gaps,” said Lunger. “Like, we’re just trying to figure out how to layer enough on to get things built when the economy is the way it is.”

A housing needs assessment for Kent County in 2022 estimated the area would need to build nearly 35,000 additional housing units by 2027 to keep up with demand.

More details on the MSHDA program are available on its website here.

Dustin Dwyer reports enterprise and long-form stories from Michigan Public’s West Michigan bureau. He was a fellow in the class of 2018 at the Nieman Foundation for Journalism at Harvard. He’s been with Michigan Public since 2004, when he started as an intern in the newsroom.
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