Kent County Affordable Housing Fund!
On 2023-08-10 the Kent County Board of Commissioners officially created the Kent Country Affordable Housing loan fund with a balance of $17.5 Million. In collaboration with IFF which will provide a ~230% match of the county's dollars to operational balance of the fund is $58.3 Million.
- ~10% of the funds will be focused on creating "home-ownership units".
- Loans, especially for multi-family/rental property, will likely be paired with state assistance such a LIHTC which have their own Afordability requirements.
- Home-ownership units must be targeted for households earning 120% or less of county AMI.
- Affordable rental units must be targeted for households earning 80% or less of county AMI.
- Affordability of 20% of Affordable units in a development must be maintained for a minimum of 10 years.
- At least 60% of units in a development must be Affordable. This allows for 40% of units to be in the desperately needed Market-Rate category.
According to news sources the county government believes the first loans could be granted within the next month. 😲 [which would be September, 2023]
As of February 2023, Kent county had an estimated housing shortage of 20,593 units and the city of Grand Rapids had an estimated shortage of 14,106 units. The shortages have only compounded over time as elected officials have been hesitate to make appropriate policy changes. It appears - 🤞 - that our local electeds at the county 👉and the city👈 are beginning, finally, to respond. With additional financial assistance available it is time to address the issue that local regulations make the actual building of housing a challenge.
See also: What is Affordable for an explanation of AMI and what "Affordable" means [officially].
Grand Rapids (Aug.10, 2023) – The Kent County Board of Commissioners today unanimously approved the parameters for a new Kent County Affordable Housing Loan Fund and authorized negotiations with nonprofit lender IFF to administer the loan fund. The overall management of the fund will be under the guidance of a yet-to-be formed advisory committee and the Board of Commissioners. Kent County last December appropriated $17.5 million in American Rescue Plan Act (ARPA) funds to address the affordable housing shortage throughout the county. Partnering with IFF provides a 2.33:1 match, adding $40,833,333 to the Affordable Housing Loan Fund for a total amount of $58,333,333. “With its proven affordable housing experience and unique funding match, IFF was a clear choice to help ensure the success of our innovative new housing fund,” said Kent County Board of Commissioners Chair Stan Stek. “We listened intently to our residents who wanted us to make housing a priority when allocating our ARPA funding. The loan fund will be transformative for Kent County families who desperately need more affordable housing options.” A 12-member Kent County Revolving Loan Housing Fund Advisory Committee recommended the loan parameters. The loan fund will support rental and homeownership developments that meeting the following affordability requirements: Rental projects will be priced appropriately for households earning at or below 80% of the county-wide area median income. Eighty percent of Area Median Income (AMI) for a family of four currently in Kent County is $71,600. Homeownership projects will be priced appropriately for households earning at or below 120% of the county-wide area median income. One hundred and twenty percent of AMI for a family of four currently in Kent County is $107,400. All projects will be required to maintain affordability requirements for at least 20% of the housing units for a period of at least 10 years or the length of the loan period, whichever is longer. The Affordable Housing Loan Fund will launch officially within the coming months. Additionally, local nonprofit housing organization, Housing Next, received a $500,000 appropriation from Kent County last December to support local governments in increasing affordable housing development through zoning and land use reforms. These reforms are important to increasing the impact of investments like the Affordable Housing Loan Fund and to build the almost 35,000 units needed by 2027 in Kent County. The Board also voted to fund 30 projects last December that draw on the $127.6 million Kent County received through ARPA. In total, more than $108 million was allocated in this round of funding.
Who is IFF?
IFF was founded in Chicago nearly 30 years ago and is now the largest nonprofit Community Development Finance Institution (CDFI) in the Midwest. IFF is a mission-driven lender, real estate consultant, and developer, which finances a variety of nonprofit-sponsored community facilities projects that range from affordable housing and schools to community centers and commercial buildings.
The 👉IFF website👈.
- Kent County launching $58M affordable housing loan program, MLive, 2023-08-10
- Kent County to launch affordable housing revolving loan fund with initial $58M, Crains, 2023-08-11
- Kent County Board approves transformational Housing Fund, Reddit, 2023-08-10
- Kent County sets parameters for new Affordable Housing Loan Fund, enters partnership with IFF, WGVU, 2023-08-11
- What is "Affordable", UrbanGR
- Grand Rapids allocates $5M to affordable housing-related projects, WGVU, 2023-02-07
- Affordable Housing Fund Board, City of Grand Rapids
- Grand Rapids' Affordable Housing Fund, City of Grand Rapids
- Housing NEXT Needs Update, UrbanGR, 2023-02-21
- Kent County opens $500K program to help communities loosen restrictive housing codes, Crains, 2023-08-14
- Nonprofit receives $10M state loan to invest in West Michigan housing projects, Crains, 2023-08-22
- New Studies Provide Further Evidence That Zoning Reforms Work, Forbes, 2023-08-28