Communities face many housing challenges, and successful outcomes require removing the barriers to development. To encourage additional housing supply and affordability, the Michigan State Housing Development Authority (MSHDA) is providing grants of up to $50,000 per project. To receive these grants, communities are not required to have matching or leveraged funds, and the work can be performed by a third-party consultant.
Housing is a topic front of mind for all walks of communities across Michigan, as such these funds are expected to go quickly — communities should start planning now.
What are common hurdles to a healthy housing inventory?
Several factors contribute to the challenges of new housing construction, deterring developers from initiating new projects and hindering construction efforts:
- Regulatory hurdles
- Economic factors such as high construction costs
- Scarcity of affordable land
- Fluctuations in the real estate market
- Community opposition concerns about the environmental impact
- A lack of adequate infrastructure support
Who is a prime candidate for a housing study?
Communities facing acute housing challenges, such as low-income neighborhoods, rural, and rapidly urbanizing areas, make excellent targets for housing studies. Additionally, focusing on vulnerable groups like seniors, students, minorities, and those with disabilities can uncover specific housing needs and inform policies for more inclusive and equitable housing solutions. A comprehensive housing study can contribute to the development of strategies that address affordability, accessibility, and the overall well-being of residents, ensuring that housing policies are tailored to the unique needs of diverse communities.
What kind of housing studies can benefit a community?
Our development consultants recommend communities consider two housing studies before moving forward with any housing development:
Housing demand study and needs assessment
Housing demand studies offer a comprehensive needs assessment on behalf of your community. These studies involve studying demographic trends, population growth, and economic indicators to understand the current and future demand for housing across varying income segments. Through surveys, interviews, and data analysis, specific needs can be identified within a community, such as affordable, senior, or market-rate housing.
Feasibility and site readiness analysis
Are sites in your community ready to attract development? Are there incentives available for redevelopment? Feasibility and site readiness analyses can assist in ensuring that a project is feasible based on underlying market conditions, physical site characteristics, legal constraints, and financial benchmarks. This information enables communities to make informed decisions about potential barriers to development and proactively mitigate them through providing incentives, simplifying entitlements, modifying zoning, and other solutions — all to facilitate site readiness.
How can Plante Moran Realpoint help?
Connect with Plante Moran Realpoint to help get your community tapped into these funds and other resources. Whether your community’s needs are project specific or solving for market-wide conditions, our real estate development consulting team is ready to help solve your challenges and explore opportunities to fund these projects with the help of external partners like MSHDA.
