LANSING — The Michigan State Housing Development Authority (MSHDA) has launched a new program to address the lack of attainable housing and other housing challenges amplified by the pandemic by supporting developers building homes for lower income homeowners.

The MSHDA, established in 1966, provides financial and technical assistance through public and private partnerships to “create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues,” a press release read.

The Missing Middle Housing Program utilizes federal resources allocated under the American Rescue Plan Act of 2021 to provide funding to developers investing in, constructing or substantially rehabbing properties.

The qualifying properties will target residents with household incomes between 185 percent and 300 percent of the Federal Poverty Guidelines to encourage economic mobility and increase the attainable housing stock of both rental and for-sale properties in Michigan.

A total of $50 million was allocated to Michigan for the creation of the Missing Middle Housing Program. $15 million will be available in the first round of funding, which opened for nonprofit developers or nonprofit/for-profit partnership applicants on September 19. A second round of funding is anticipated to open in spring 2023 for $33 million. At least 30 percent of the funds must be allocated to rural projects.

To qualify for the Missing Middle Housing Program, applicants must be a tax-exempt organization under section 501(c)(3) of the IRS code of 1986, 26 USC 501 and must be eligible to do business in Michigan with proven experience. The Missing Middle Housing Grant will have a 10-year compliance period to ensure the projects remain attainable for the missing middle demographic.

“The COVID-19 pandemic exacerbated areas of concern in our state’s existing housing stock,” said Chad Benson, rental development director at the MSHDA. “With the launch of the Missing Middle Housing Program, we can collectively address these issues and rebuild Michigan’s housing availability through strategic investments that will grant a large demographic of residents access to quality, safe, attainable housing.”

Interested applicants can find details and a link to the application portal at Missing Middle Housing Program (Michigan.gov) or received assistance with their application submission by emailing MSHDA-MissingMiddle@michigan.gov.