Reorganization shifts administration of critical housing grant to state housing agency, spurs growth, helps achieve goals of the Michigan Statewide Housing Plan 

GRAND RAPIDS, MI – On Feb 6th, at the Grand Rapids Economic Club, Governor Gretchen Whitmer signed an executive order to put the Michigan State Housing Development Authority (MSHDA) in charge of more housing resources. This change will allow more flexible funding to promote housing innovation and ensure the state can get funds out the door more quickly to build more housing faster.?? 

“We need to build more housing in Michigan as efficiently and effectively as possible,” said Governor Whitmer. “On Feb 6th, I am proud to sign an executive order to bring more housing resources under the authority of our state’s housing and development authority. Getting this done will help us move faster on housing projects so we can help more Michiganders have a safe, affordable place to call home.” 

Housing Executive Order 

Governor Whitmer’s executive order reorganizes the way the State of Michigan funds and builds housing. It shifts administration of the Community Development Block Grant (CDBG) from the Michigan Strategic Fund to MSHDA. This change will make sure the state’s housing agency oversees important issues related to housing, allow more flexible funding to promote housing innovation, and help get dollars out the door faster, kickstarting projects and moving dirt. 

To view the executive order, click here. 

Supplemental 

On January 31, Governor Whitmer signed a $1 billion supplemental, which included critical investments in housing and community development. 

• $150 million into the Housing and Community Development Fund, which can be used to leverage a further $380 million in private funding to build or rehab 2,000 units, house 6,000 people, and create 1,600 jobs.  
• $100 million in Revitalization and Placemaking Grants, or R-A-P grants. These grants make towns more vibrant, converting underutilized property—like old factories or schools—into housing, small businesses, or community spaces. 
• $50 million in the Missing Middle program, which specifically builds housing for middle-class families. There are also some key changes to the program to expand eligibility, increase the kinds of developers the state can use, and cut construction costs and time.  

Michigan Housing Stats 

• 50% of renters and 25% of homeowners spend more than 30% of their paycheck just to keep a roof over their heads.  
• The state’s housing stock is old: 47% was built before 1970. 
• Median income in the state can afford a home priced around $175,000, but new homes cost $307,000 on average. 
• Millennials with college debt need 12 years to save enough to buy a house. 

Michigan’s Statewide Housing Plan 

Last September, Governor Whitmer and MSHDA released the state’s first-ever Statewide Housing Plan. It proposed specific goals to meet the state’s housing challenges: 

• Build or rehabilitate 75,000 housing units. 
• Stabilize housing for 100,000 families. 
• Weatherize and improve energy efficiency for 15,000 homes. 
• Make homelessness rare, brief, and nonrecurring.