Tag: Low-Icome Housing Tax Credit

Tax Credits Helping or Hurting Grand Rapids, MI, Real Estate?

Incentives Are The Lynch Pin of Capitalism. In a growing area like Grand Rapids, builders want to build because people from elsewhere want to move there – for college, for jobs, to raise their family. Also growing because people who are already living there are having children – who want to go to college, find a job and raise a family.

Rockford, a hop skip and a jump north of GR, is a thriving growing suburban, mostly homogeneous, area.  The company Rockford Construction has an incentive to expand to find more revenue; more profit, more jobs, better economy.  If left to their own devices they could connect with wealthy clients of GR and provide the means for THEIR expansion, and market-value housing happens with a free-hand.  Everyone expands, right?

The Rich Get Richer? Or…

If there’s not room, just buy out the competition: the current resident, which happens to have less money and then therefore less room in Grand Rapids.  Maybe there’s room in Rentwood, err, Kentwood? Without another type of incentive business would be business and some people would lose, naturally.

rent

The idea that your neighborhood is eaten and swallowed by upper income people wanting to move in is called gentrification.  “The gentile” could argue that “the projects” do not help a city and of course, issues of white privilege, racism, classicism come into play. We are a country of majority rules, and minority rights.  In this situation, the minority rights would displace the majority’s rule of their homeland.

“The Low-Income Housing Tax Credit (LIHTC) is the most important resource for creating affordable housing in the United States today,” says huduser.gov which tracks data about the projects funded through LIHTC. HUD would use data like this to prove that from 1987 – today lots of housing projects have been completed, lots of beds for lots of people who have been protects through this business incentive.

Without an incentive like LIHTC it would be in the best interest for corporations to put upper-income renters into buildings: more profit.  The LIHTC subsidizes the rent for a lower-income individual to afford it, and enough businesses will go through the extra headache in their project to accommodate the red tape.

This Time Red Tape LIHTC For the Win

We have a golden opportunity in Grand Rapids to integrate the outsider and the insider, the privileged and the under-privileged. If it weren’t the LIHTC would it be something better to protect the lower-income class? The Feds could pay employers money that goes directly into the paycheck for individuals to afford whatever rent the builder wanted to charge?  There’s lot of solutions to the problem, but the problem remains: the lower-class needs some protection and opportunity, too.

If you are seeking shelter and opportunity click here.

What the MSHDA Is Doing for Real Estate Projects in West Michigan

We can say the housing market looks great but until the people who need houses have houses it’s not a great market for the market, the people. The method of calculation for a market-rate house is unclear. It appears clear to a family when affordable isn’t. The demand for affordable housing remains high all over Michigan, says the MSHDA.

Michigan State Housing Development Authority, Go Green?

Lots of things “Go Green Can mean these days.” Is there a Michigan State University affiliation?  No; they are located in Lansing but not East Lansing. This is a .gov deal. There is also a Detroit office. We see why. Don’t worry West Michigan, they still service our area.

The grass is greener? The Greens? Dollar, Dollar bills you all! Yes, maybe. The MSHDA takes in money from the federal government at a rate of about $1.75 (more recently it’s been legislated that this will increase automatically with inflation) per resident of the state, sometimes more…read here… That green sea of money is a pool that has many uses. Builders can apply for credit off their property taxes.

This West Michigan Real Estate Property is Benefiting: 20 East Fulton. Job creation in West Michigan happens when Builders can fund large projects. Without a strong employment market, there cannot be a strong real estate market. Hopetoown agrees. 

Environmentally speaking would be a really interesting twist to the command, “Go Green” Now! You better make LEAD certified buildings for the people of low-income to thrive in. THRIVE NOT SURVIVE! THRIVE NOT SURVIVE. Oh, pardon me, this writer turned into a picketer for a moment. MSHDA (sang to the tune of YMCA)!  Actually there is a “green initiative” with MSHDA; good job! The division with green initiatives has a description

“The purpose of Downtown & Community Services is to support the creation, preservation and sustainability of vibrant communities through technical assistance.”

This is a good way to word the benefit West Michigan feels from MSHDA, with it’s many different divisions.

One is section 8. Maybe you’ve heard of it, a voucher Program as rental assistance which is one solution to homelessness. The HOPE Program has solutions, too. This article might be of interest to the section 8 residents out there. 

Supporting the Creation and Preservation with Sustainability by the LIHTC is ONE MAJOR way MSHDA supports West Michigan, and beyond. But not to infinity. Only Michigan. Read more about LIHTC here.MSHDA

MSHDA Creates Incentive For Builders to House Forgotten Portions of The Market!

Are you feeling forgotten?  You can use MSHDA to find a place to rent. 

You can connect to a network of housing help here.