The Michigan State Housing Development Authority (MSHDA) Board has approved a $28 million construction loan and other financing to preserve and update the River Terrace Apartments and public housing project in Benton Harbor.
The property consists of a 10-story tower building in the “Flats’ area of the city, with 150 senior apartments and 120 family units in 13 nearby townhouse buildings. All units will be rehabilitated with improvements such as air conditioning replacement, hot water storage and furnaces in family units, kitchen floor replacements, upgrades to cabinetry, countertops, faucets and kitchen appliances, as well as modernizing elevator equipment and more. Construction is expected to create nine permanent jobs and 75 temporary jobs.
All River Terrace units will also have Section 8 assistance, adding to the affordability for residents.
“This property will preserve affordability and upgrade 270 rental units at a time when Michigan is seeking to expand and improve its affordable housing options,” said Chad Benson, MSHDA rental development director. “It’s always satisfying to support developers in their efforts to make life better for the renters we serve.”
In other action, the board approved the transfer of $60 million in qualified mortgage bonds from 2021 to be used for the Mortgage Credit Certificate (MCC) program. The popular federal tax credit program allows home buyers to claim up to 20% of a federal income tax credit on an annual basis. MSHDA issued in excess of $19 million in MCC to help 129 home buyers maintain housing affordability last year and has already helped 42 home buyers with over $6 million in tax credit this year. It’s believed the transfer of mortgage bonds could help more than 300 new households.
The board also approved the extension of the Pass-Through Bond Program, setting the bond cap at $150 million.
