Tag: MSHDA

2 Reasons Why Grand Rapids, MI, Needs the LIHTC for Affordable Housing

Wealth isn’t distributed based on how hard you work, not even in the glorious Grand Rapids. If it were a hard-working lower-class citizen would make the same as the hard-working upper-class. And it would be the working-class and the lazy-class.

Laissez-Faire Is Not Lazy-Free: It’s Free Market

Laizzez-Faire is said today by businessmen wanting government subsidies and incentives out of the picture entirely. It was originally used by Physiocrats in the eighteenth-century France, who believed that self-interest meant people would act in the direction of the common-good. Let’s see how that plays out…

affordable housing

“Hi, builder. Could you accept less every month than you COULD so that other less healthy parts of the economy can heal and thrive?”

“No, I’ll use my self-interest to maximize my profit.”

Yes, People have the right to their self-interested business decisions. All people have a right-to-life and life looks like food-shelter-water. I repeat, SHELTER. So protecting low-income people is vital to a healthy community. A sort of boomer-rang in the plan is needed to redirect self-interest towards the interest of other-selves. It’s called learning to share.

The LIHTC, Low-Income Housing Tax Credit plays the role of an invisible-hand of the free-market when income disparity causes the rich to serve the rich and the poor get displaced. Instead of putting money right into the real hands of the lower-rung, the LIHTC is an incentive for a builder to serve a lower-income need: cheaper than market-rate rent; affordable rent. For this promise a business will not pay as much in property taxes, and a penny saved is a penny earned – for everybody.

LIHTC #1 Drives the Market For Builders, #2 Creates a Space For Individuals or Families With Low-Income To Rent

So LIHTC does 2 things. It drives the market. It connects builder to renter. It lets the market be free and do it’s own thing but it also protects affordable options. Click here to Read more about how the LIHTC accomplishes this here.

Without the LIHTC, imagine this ask, “Hi, builder. Could you accept less every month than you COULD so that other less healthy parts of the economy can heal and thrive?”

“No, I’ll use my self-interest to maximize my profit.”

Yes, People have the right to their self-interested business decisions. All people have a right-to-life and life looks like food-shelter-water. I repeat, SHELTER. So protecting low-income people is vital to a healthy community. A sort of boomer-rang in the plan is needed to redirect self-interest towards the interest of other-selves. It’s called learning to share.

 

If Affirmative Action is an example of an invisible hand within the job market, then the LIHTC is an invisible hand in the real estate market, specifically for renting. Click here to Read more here.

Local Grand Rapidians made GR a Grand Place to Belong…

Great, unless…GR fills with outsiders with more money and the market-rate rent within downtown would increase with increased competition, and then the areas surrounding downtown rent would increase, outward and so on. As these areas fill with wealth, suburban areas swell in the opposite direction with refugee-like environments.Social_Network_Diagram_(segment).svg

This trickle down effect isn’t healthy for a community: it’s divisive. Clearly it can cause resentment and a whole slew of cultural problems, including gangs and violence. Of course, given it’s course, it would eventually flip back over. The cool is still cool and the money would still follow it around.

Instead of all that…we can have places like 20 East Fulton. 54 affordable renting people living next to people able to pay market-value prices. Read more here…

There’s the wealthy building-owners and the building-renters. There’s wealthy renters and not-wealthy renters. The LIHTC works to bridge the gap.

If you need help bridging your gap to affordable housing 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.