Those surviving on low-income are driving the demand for home building in Grand Rapids, but indirectly. The MSHDA, Michigan State Housing Development Authority, comes in to give the businesses looking to expand a push in the right direction. Through a LIHTC, Low-Income Housing Tax Credit towards the property tax a business can make serving the demand profitable.
It’s not that Michiganders Are Lazy…
Low-income driving the demand for more, more-affordable, homes isn’t because too many people are sitting at home on their comfortable couch. Just in March 2016 the employment rate in Michigan dropped to a 4.8. That’s .2 below the National Average. That feels nice, but ‘averages’ when speaking to individuals sit with Diddy and Squat. There’s Diddily, Squat and Average sitting on a couch..where is Tall? He’s working with you!
Meet the MSHDA:
There’s a movement around Grand Rapids to renovate old, unused spaces and create livable space. That’s a utopian dream, right. And it just so happens, there’s a high demand for low-income housing and there’s a benefit to the economy is people can live with expendable incomes. The MSHDA works on behalf of people earning too low an income to keep up, whether this is through single parent homes, disability, back-to-school (temporarily-under-employed) situation, temporary unemployment. Individually, Going the Mortgage route is one way. The MSHDA has stakes in another. Click here to read more about MSHDA.
The fact that there is such a thing as market-rate rent and affordable rent is a sign, is it not? There’s a division in the market and the upper class has the money so claims the market-rent and the rest of the market can be subsidized somehow through government programs and legislation. It’s better than tearing down all the old buildings and putting up new, for only the wealthy-enough… actually even that will help. Those property taxes flow in and are turned into tax credits for OTHER businesses that will house at a rent-restricted rate. The symbiotic being of the government, business and people… amazing.
Places like Rockford Construction will come drive the Fulton stretch, Leonard St… and see an open space and throw up a new apartment complex…like the dozy going up across from adobe by GVSU and charge market-rate rent. Yeah these buildings will make it nicer, and then someone like Karl Chew with Brookstone Capital, LLC of Midland will come in and use the LIHTC to renovate an old building and have a 50-50 market-rate rent and affordable rent. Click here to learn more…