Michigan encourages revitalizing homes.
The Michigan State Housing Development Authority (MSHDA) Office of Community Development (OCD) provides grants through the Housing Resource Fund (HRF). HRF grants are a combination of federal dollars and MSHDA resources. Agencies allocate grant money in specific areas recognized under HRF guidelines. Local governments and nonprofit organizations may apply for funding.
Home Buyer Assistance
Organizations can apply for grant funding under the HRF to administer programs that encourage low-income families to purchase homes. Funding, in some cases, is available to acquire and refurbish abandoned homes and then offer them for sale at an affordable price. In other instances, grant money funds construction of new housing for sale to low-income members of the community. The Home Buyer Assistance program can also provide a home buyer with help making a down payment on a home purchase. The program requires that a home buyer receive a mortgage interest rate and other costs that are the most favorable in the market. Community groups or local governments must make sure that a home buyer undergoes ownership counseling before purchasing the home.
Homeowner Assistance
Low-income homeowners can receive assistance in home repair through OCD Block Grants. Counties receive funds throughout the state by way of the County Allocation Program and usually involve a large number of homes in the community. Homeowners with annual income that is 80 percent or more below the average in the community are eligible to have repairs paid for with deferred low-interest loans from the state's Housing Resource Fund. The program guidelines encourage, but do not require, homeowners to make payments on the loan. In some instances the County Allocation Program may offer homeowners loans that they do not need to pay back.
Small-Scale Rental Development/Rehabilitation
Nonprofit community groups may use HRF grant funds to make affordable rental housing available to low-income citizens. Monies can fund construction of new rental units or purchase and revitalize existing buildings. The project must provide housing that is affordable for low-income people in the neighborhood, and multifamily dwellings must contain between one and 24 rental units. Grants are only available for projects that will enhance an overall community improvement plan, and provide affordable housing for low-income families in an area where the majority of rental property is higher priced. Grant applicants must be able to show they have financial means to properly maintain the rental housing on a long-term basis and have a background managing rental property.
Tags: Allocation Program, Buyer Assistance, County Allocation, County Allocation Program, grant money, home buyer, Home Buyer Assistance
