DETROIT, MI -- Federal COVID-19 relief funds could provide $100 million for home repairs and new housing units expected to help 6,000 Michigan residents.
Gov. Gretchen Whitmer announced the proposed investment Tuesday in Detroit, where state and local officials identified a need for thousands of affordable units and more funds to repair aging houses. The $100 million, which is expected to create 2,000 rental units across the state and “leverage” $380 million in private investment, will go into the Michigan Housing and Community Development Fund for projects across the state.
“Safe affordable housing is inextricably linked to the safety and well-being of every Michigander,” Whitmer said. “It’s no surprise that our housing challenges, like so many issues, have been exacerbated (throughout) the pandemic.”
The proposal would need to be approved by the state legislature, which has authority to determine how federal COVID-19 relief money is spent.
Michigan State Housing Development Authority Acting Executive Director Gary Heidel said the state would issue grants or loans for a variety of projects to build new homes, help residents secure down payments, rehabilitate existing buildings and support community development programs. The proposal would assist 6,000 Michiganders and create 1,600 jobs, according to the governor’s office.
“By leveraging additional private capital, we will be able to amplify this major investment to its fullest extent,” Heidel said. “The current magnitude of the housing shortage is so large that solving the supply problem will take significant coordination of both public and private resources, coordination that the Housing and Community Development Fund was designed to do.”
Michigan is facing a shortage of 204,728 rental homes for low-income residents, according to the National Low Income Housing Coalition. The group says 312,660 renters qualify as extremely low-income, representing 28% of all renter households in the state.
A 2019 MSHDA report found a large portion of the state is dealing with housing affordability issues. Michigan experienced a dramatic slowdown in residential construction since the 2008 recession. Heidel said the current need for affordable units is even greater today due to the economic impact of the COVID-19 pandemic.
Heidel said the state officials and community stakeholders are working to finish Michigan’s first statewide housing plan later this year. The plan will guide future investments and identify areas with the greatest need.
“This is a real new opportunity for us to set a new base for how we’re going to be looking at this and what this means for the prosperity of our state,” Heidel said.
State Rep. Cynthia Johnson, D-Detroit, asked state officials how much of the funds will be used to build new units, but this is yet to be determined. She told MLive said the greatest need is providing direct assistance to low-income residents.
Whitmer, joined by Detroit Mayor Mike Duggan and Lt. Gov. Garlin Gilchrist, announced the proposed investment at a manufacturing facility where Citizen Robotics is developing 3-D printing technology to create low-cost homes. Citizen Robotics Executive Director Tom Woodman showed off a manufacturing robot mounted on a truck bed that can create concrete buildings with fewer skilled workers.
Citizen Robotics displayed design documents for a single-family structure. Woodman said the nonprofit group is working with developers on two projects that could begin construction later this year.
“We already have the technology, what’s needed is to use it to give people houses that they can afford,” Woodman said. “Perhaps the most obvious and direct way out of the affordable housing crisis is to build more homes at modest prices people can afford.”
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