The Michigan State Housing Authority (MSHDA) will officially be opening Round 2 of funding for its Missing Middle Housing Program on Monday, March 20, 2023. 

The Missing Middle Housing Program is a housing production program designed to address the general lack of attainable housing by increasing the supply of housing stock to support the growth and economic mobility of employees by providing cost defrayment to developers investing in, constructing, or substantially rehabbing properties targeted to Missing Middle households.

Several changes have been made to the program since the first funding round (Round 1) including:

• Applicants are no longer required to be a non-profit developer.
• MSHDA will use 60%-120% AMI for the qualifying target household income range vs 185%-300% FPG.
• Maximum grant amounts are $70,000 per unit for projects of 12+ units and $80,000 per unit for projects of 11 units or less ($5 million maximum per project).
• The compliance period on for-sale units has been reduced to 5 years. The compliance period for rental units remains at 10 years.
• Round 2 has $80 million available for distribution within regional and target area requirements.

Local units of government are encouraged to share this information with housing developers they are working with to address housing needs in your community.

For specific details about the Missing Middle program including the updated program plan, FAQ document, and how to apply for grant funding visit MSHDA’s webpage: https://www.michigan.gov/mshda/developers/missing-middle

Comments or questions can be sent to [email protected]

Jennifer Rigterink is the League’s assistant director of state and federal affairs handling economic development, land use, and municipal services issues. She can be reached at [email protected].