(The Center Square) – Funding will remain steady for the Michigan State Housing Development Authority going into the new fiscal year.
CEO and Executive Director Amy Hovey applauded the legislature’s decision on that.
“MSHDA appreciates the Michigan House, Senate, and Whitmer Administration for adopting a balanced budget that keeps our state moving forward, including continued investment in the Housing and Community Development Fund,” Hovey said. “With this process complete, we can confidently focus on housing solutions and investments that serve and strengthen the lives of our neighbors and communities across Michigan.”
Comparing the 2025-2026 fiscal budget, which was just signed last week, to last year’s budget, the authority saw a slight increase in its funding. This comes despite a slight decrease in the overall budget spending.
Gross appropriations for the authority increased from $322.5 million to $323.2 million. While other departments saw the elimination of some employees, the Michigan State Housing Development Authority did not. Instead, its number of full-time positions remained steady at 318.
The budget increase came from an increased expenditure for housing and rental assistance operations, namely the cost of employees. In fact, funding for the Michigan housing and community development program remained steady at exactly $50 million.
The Michigan State Housing Development Authority is a state agency designed to help grow the state’s affordable housing through financial assistance and “public and private partnerships.”
For example, just last month the authority announced a series of funding grants. Those included:
• $19.6 million in funding for the new construction of 88 housing units, 72 of which will be designated affordable.
• $22 million in funding for phase three of a new construction development consisting of 60 apartments and townhomes.
That means there is $41.6 million in taxpayer funding for 148 total housing units.
In Michigan, there is a severe housing crisis, which totals a 119,000 housing unit shortfall, according to the state.
Low-income renters are especially affected by the shortage, according to a 2025 report from the National Low Income Housing Coalition. It found that Michigan would need 185,000 more affordable homes to fully address the shortage for “extremely low-income households.”
The authority hopes its programs will help address that shortage.
“Our priority remains clear: moving quickly to close the 119,000-unit housing gap and ensuring every Michigander has access to a safe, quality, and affordable place to call home in a neighborhood of their choice,” Hovey said.
As part of that effort, the state released a Statewide Housing Plan in 2022. Spearheaded by the authority, that plan designated $61.8 million (of federal and state funding) in grants statewide to “support” 1,551 housing units. That means each unit will cost the taxpayers just under $40,000.
