Reserved for low-income households receiving rental assistance, the Sault Ste. Marie project is expected to create at least 120 temporary jobs and two permanent positions.
What’s happening: The Sault Tribe Housing Authority has been awarded $1.3 million in Low-Income Housing Tax Credits from the state of Michigan to build 36 new permanent supportive housing (PSH) units in Sault Ste. Marie. These residential units will be reserved for households earning up to 30% of the Area Median Income (AMI), with all units expected to receive rental assistance through the Michigan State Housing Development Authority (MSHDA). Beyond providing much-needed housing, the project is projected to boost the local economy by creating at least 120 temporary construction jobs and two permanent positions.
The bigger picture: The Sault Ste. Marie project was among more than 600 new affordable housing units across Michigan being granted more than $18.9 million in federal 9% Low-Income Housing Tax Credits, according to state officials. The developments, from Detroit to Sault Ste. Marie and points in between, will serve a variety of housing needs, including permanent supportive housing for individuals and families experiencing homelessness, affordable housing for seniors, workforce housing, and new opportunities in rural, urban and Tribal communities.
What they’re saying: “Creating affordable housing has become increasingly challenging as construction costs, financing gaps and market pressures continue to grow,” said Tony Lentych, who is MSHDA chief housing investment officer. “These awards will help bridge those gaps, leverage additional investment and create more than 600 new homes for Michigan residents. Each development represents a partnership and a long-term investment in the strength and economic stability of its community.”
About the program: Federally funded and administered by MSHDA, the LIHTC program is the nation’s primary tool for financing affordable rental housing. It awards competitive tax incentives to developers building or rehabilitating homes for low- and moderate-income households, lowering financing costs to ensure long-term affordability and lower rents.
