LANSING, Mich. — Governor Gretchen Whitmer on Thursday highlighted new investments in the fiscal year 2027 budget to expand affordable housing and help Michigan families find affordable places to live in vibrant communities.
The budget also strengthens efforts to prevent and end homelessness in Michigan.
"Every Michigan family deserves an affordable, quality place to live, work, and play," Governor Whitmer said. "I'm proud of the bipartisan work we've done to build more affordable homes and close the housing supply gap."
The fiscal year 2027 budget was signed into law by Gov. Whitmer last month. It includes $50 million for the Michigan Housing and Community Development Fund, $5 million for permanent supportive housing, and $4 million to support communities working to prevent and end homelessness. The budget also established a new Michigan Housing Opportunity Tax Credit to help finance thousands of new affordable rental housing units every year.
According to the governor's office, the state faced an estimated 190,000-unit housing shortage before the Statewide Housing Plan began in 2022. The gap has now fallen to approximately 97,000 units.
New housing tools
The new Michigan Housing Opportunity Tax Credit gives the Michigan State Housing Development Authority, or MSHDA, a new tool to make affordable rental housing developments financially feasible. The state credit will leverage the federal Low-Income Housing Tax Credit and additional private investment.
The program is expected to support about 2,500 affordable rental homes annually. It will support both new construction and preservation, with at least 30 percent of available credits designated for qualifying rural projects based on greatest housing need.
The Michigan Housing and Community Development Fund also received $50 million in the enacted budget to support the development and preservation of affordable housing and the revitalization of neighborhoods and downtowns.
Homelessness response
The fiscal year 2027 budget includes $4 million for Michigan's Continuums of Care to support efforts to prevent and end homelessness. Eligible uses include eviction prevention, street outreach, rental assistance, supportive services, emergency shelter, and transitional housing.
Priority will be given to maintaining rapid rehousing and permanent supportive housing projects that do not receive federal fiscal year 2026-27 Continuum of Care funding. The state has also invested $20 million through a Make it in Michigan Competitiveness Fund grant to support regional planning bodies working to prevent and end homelessness.
MSHDA is partnering with the state's Continuums of Care to assess local needs and develop a plan for deploying the new state resources.
State Sen. Jeff Irwin, D-Ann Arbor, said the funding counters federal cuts and keeps people housed. State Rep. Cynthia Neeley, D-Flint, said the investments help more Michiganders gain stability.