The Michigan State Housing Development Authority (MSHDA) announced $5.4 million in grant funding on Thursday to seven employers across Michigan as part of the $10 million Employer-Assisted Housing Fund initiative introduced by Governor Gretchen Whitmer in January. The program is designed to help employers develop housing options in areas where their employees face difficulty finding affordable homes, marking the state’s latest effort to address the growing housing shortage amid increasing job growth.
Governor’s Housing Fund Initiative
The $10 million Employer-Assisted Housing Fund, unveiled by Gov. Gretchen Whitmer earlier this year, provides matching grant funds to employers who invest in housing for their workers. This program specifically targets regions in Michigan that have limited affordable housing opportunities for employees. It requires that rental housing created remain affordable for at least 10 years and for-sale housing remain affordable for at least five years, ensuring long-term access to affordable options for workers.
Michigan’s Housing Demand and Job Growth Gap
According to MSHDA, between 2014 and 2023, Michigan added approximately one housing unit for every 14 new jobs created, highlighting a significant imbalance between housing supply and employment growth. Whitmer emphasized the importance of housing in economic development by stating, “If we want people to move to communities for work, they need affordable places to call home.”
Grant Awards Support 479 Households
$5.4 million in grants were awarded to seven employers who will use the funds to provide housing assistance to an estimated 479 income-eligible households throughout Michigan. Additionally, $4.6 million in grant funding remains available for future awards, although a timeline for disbursement has not yet been announced. Applications for grant funding under the program are still open for interested employers.
Housing Stipend Program in Traverse City
Munson Healthcare, a 442-bed hospital located in Traverse City, received $500,000 in grant funding to create a housing stipend program for 42 employees, which is matched by a $500,000 contribution from Munson itself. Employees who participate must commit to a 24-month employment contract to qualify for up to $1,000 per month in housing support. The funding is expected to assist between 42 and 62 families and aims to improve recruitment and retention of newly hired clinical and support staff, particularly helping keep workers in northern Michigan.
Manthei, Inc.’s Contribution
Manthei, Inc., also known as Manthei Wood Products and based in Petoskey, secured $490,000 in matched grant funding to support a housing down payment assistance program for at least 14 employees. The company specializes in manufacturing hardwood face veneers and plywood. Employees can receive up to $70,000 in total down payment assistance, with priority given to current workers. Manthei noted that if funds remain after current employees apply, the program would extend down payment assistance to new recruits to help attract additional talent.
Grand Rapids Mixed-Use Development
Sun Title, a title insurance and real estate closing company based in Grand Rapids, received $2 million in grants and donated land valued at approximately $3.1 million for a five-story, mixed-use building. This residential development will include 171 units priced at or below 120% of Kent County’s area median income (AMI), targeting workforce affordability.
Sun Title’s Costing
The building will consist of 43 studio units, 112 one-bedroom units, and 16 two-bedroom units. Among these, 37 units will be designated as employer-assisted housing specifically for Sun Title employees. However, the exact distribution of these 37 units by size was not detailed. The project was first announced in June 2024 as a five-story, 181-unit apartment building featuring a ground-floor cafe adjacent to Sun Title’s offices. Estimated construction costs were around $35 million, with a unit breakdown of 86 studios, 91 one-bedroom, and 4 two-bedroom apartments.
Down Payment Support
Cascade Engineering and Spectrum Enterprise jointly received $100,000 in matched grant funding after each contributed $50,000. These funds will provide down payment assistance to 27 employees: Cascade Engineering plans to help 17 workers with $6,000 each, while Spectrum Enterprise intends to provide $10,000 each to 10 employees. The nonprofit The SOURCE will administer the grants on behalf of both employers.
Lincoln Place Employer-Assisted Housing
Out of 209 units, 20 will be employer-assisted housing restricted to tenants earning up to 120% of Oakland County’s area median income, ranging from $84,840 for a single person to $121,200 for a family of four. Amenities proposed in 2024 include outdoor seating, an indoor fitness center, and a dog walking area. The project’s estimated cost was $45 million to $55 million, initially planned as a 158-unit development.
Flint Housing Assistance
The Greater Flint Health Coalition received $300,000 in matching funds to support a down payment assistance program for employees of the coalition and Hurley Medical Center. The program targets homebuyers interested in The Gatehouse, a 16-unit condominium project developed by the Genesee County Land Bank.