MSHDA Approves $9.5 Million Grant for 48 Affordable Housing Units in Grand Traverse County, Announces 490 Units Across Michigan

State Housing Authority Funds New Affordable Housing in Northwest Michigan

The Michigan State Housing Development Authority announced its board has authorized funding for housing developments in Grand Traverse, Washtenaw, and Wayne counties, creating or preserving 490 affordable housing units across the state.

In Grand Traverse County, MSHDA awarded $9.5 million for the second phase of The Flats at Carriage Commons in Garfield Township. The Garfield Township apartment complex will receive that funding to construct 48 new housing units, five of which will be handicapped-accessible.

The project moves forward as part of Michigan's broader effort to address the state's housing crisis. MSHDA CEO Amy Hovey stated:

"We remain focused on closing the 119,000 housing unit gap and expanding access to homes people can realistically afford. The progress we're making reflects MSHDA's thoughtful investment, collaboration and innovation to ensure every Michigander has a place to call home."

The $9.5 million grant brings additional affordable housing options to Northwest Michigan where demand continues to outpace supply. The Flats at Carriage Commons is an income-limited apartment complex located in Garfield Township near Traverse City. Residents began moving into the previous 48-unit phase of the building in August 2025.

Grand Traverse County faces significant housing challenges as tourism, healthcare, and education sectors compete for available workers. The county's affordable housing stock has struggled to keep pace with rising demand in recent years.

The funding announcement also includes support for additional projects in Washtenaw County, which encompasses Ann Arbor, and Wayne County, which includes Detroit. In Ann Arbor, the Michigan State Housing Development Authority announced its board has authorized $118.6 million in funding for the development planned at 350 S. Fifth Ave. It's expected to help bring 329 new apartments for low- to moderate-income households to downtown Ann Arbor.

The Ann Arbor project is being developed by the Ann Arbor Housing Commission in partnership with developer Related Midwest. The development is located next to the Blake Transit Center and across from the downtown library on the former site of the Ann Arbor YMCA. The new development is expected to cost over $200 million and has a mix of funding sources, including about $30 million in tax incentives and $35 million in bonds being issued by the city.

Ann Arbor Mayor Christopher Taylor noted the project represents the first all-affordable apartment high-rise in Michigan. He praised the city's approach to funding affordable housing through general revenue bonds.

"We remain focused on closing the 119,000 housing unit gap and expanding access to homes people can realistically afford. The progress we're making reflects MSHDA's thoughtful investment, collaboration and innovation to ensure every Michigander has a place to call home."

MSHDA also approved funding for 68 senior units in Livonia, as well as bonds to fund down-payment assistance and mortgages at reduced interest rates to make homeownership more attainable for Michigan residents.

The statewide housing plan includes various funding mechanisms and programs designed to address different aspects of the housing crisis. The authority works with local housing authorities, developers, and community organizations to implement projects that meet local needs while adhering to state guidelines.

The funding decisions come as Michigan continues to grapple with a severe housing shortage that affects communities across the state, including West Michigan markets like Grand Rapids, Kalamazoo, and Traverse City. State officials have cited housing affordability as one of the top priorities for the coming legislative session.

The Grand Traverse County project will add to the existing affordable housing inventory in the area, providing more options for workers seeking housing near healthcare facilities, educational institutions, and other essential services. The five handicapped-accessible units ensure the project meets the needs of residents with disabilities.

The MSHDA board's authorization represents another step in Michigan's multi-pronged approach to addressing the state's housing crisis through public funding, tax incentives, and collaborative development efforts.