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MSHDA Approves Changes To Missing Middle Housing Program

February 21, 2023

Article courtesy MIRS News, for SBAM’s Lansing Watchdog e-newsletter

The state housing authority expanded the parameters Thursday of a program designed to help create more working-class housing throughout Michigan.

Under changes by the Michigan State Housing Development Authority (MSHDA) Thursday, all developers will be able to participate in the Missing Middle Housing program instead of just 501(c)3s. Another change will allow for more of the $50 million the legislature recently set aside for the program to be spread throughout the state.

MSHDA Rental Development Director Chad Benson said the changes the legislature made in July included income limits for the program and the elimination of subsidy limits that prevented some developments from being built.

“Our goal is to use area median income going forward, which is something that most programs use and I think everybody’s very familiar with it,” he said. “A lot of those changes are going to give us some really good flexibility that we’ve been hoping for with the program,” Benson said.

The Missing Middle program was just awarded $50 million in a $1 billion supplemental signed by Gov. Gretchen Whitmer in January.

Benson said, with the extra funding, MSHDA was developing criteria for the requirements surrounding the accessibility of housing units.

He said after the infusion and leftovers that MSHDA has about $80 million remaining to be put out in a second round of funding.

“Once we get these amendments in place, we’ll be engaging a lot of people to make sure that they’re aware of the changes in the program, but part of it is getting constant feedback,” Benson said.

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