Kent County and IFF Award Nearly $10M Affordable Housing Loans to Three Local Development Projects

Kent County and IFF Award Nearly $10M Affordable Housing Loans to Three Local Development Projects

Loans will help fund the construction of affordable rental units and for sale condominiums

GRAND RAPIDS, Mich. (Aug. 13,2024) - Kent County and IFF have announced the closing of $9.9 million in Kent County Affordable Housing Loan Fund packages for three community-based development projects. These loans will support the construction of 311 affordable rental units and 27 affordable condominiums in Grand Rapids and Wyoming.

"These projects illustrate what we envisioned when we partnered with IFF to establish the Affordable Housing Loan Fund," said Kent County Board of Commissioners Chair Stan Stek. "With this fund, we aim to stem the housing shortage in Kent County by tackling root causes. That means supporting community-based developers who understand those root causes and collaborate on innovative solutions that meet the needs of the people they serve."

These projects are the second, third, and fourth loans the Kent County Affordable Housing Loan Fund has closed on since it was established in August 2023.

"We're very excited that these loan packages support rental and 'for-sale' projects," said Chris Uhl, executive director of the Eastern region for IFF. "We know it was important for the community to have various housing options available. Additionally, the fact that we have attracted funding from other sources in each project illustrates how we can use the Affordable Housing Fund to fill gaps and leverage several capital sources to get the job done."

The three projects include:

• HOM Flats 28 West: Situated at 1420 28th Street in Wyoming, this $84 million project will provide 257 rental units, of which 208 are designated as affordable for individuals earning between 60% and 120% of Area Median Income (AMI). Magnus Capital has been granted a $3.7 million acquisition loan, with additional funding from the City of Wyoming and the Michigan State Housing Development Authority (MSHDA).
• Seymour Square: Located at 2550 Eastern S.E. in the Seymour Square neighborhood, this $14.1 million project will feature 14 condominium units at a sale price targeted to buyers who earn below 80% of AMI and 13 units targeted to the missing middle-people who earn 80% - 120% of AMI. The $4 million loan to ICCF will be repaid through the proceeds from condo sales, with additional funding sourced from Grand Rapids Brownfield Tax Increment Financing, Grand Rapids Home Funds, Michigan Economic Development Corporation (MEDC), MSHDA, and a federal allocation from Representative Scholten.
• Motown Square: Located at 1300 Madison SE in Grand Rapids, this $18.2 million project will offer 54 one-bedroom apartments for residents aged 55 and older, with annual incomes ranging from 30% to 60% of AMI. The $2.2 million loan to Linc UP will be repaid through permanent financing, supplemented by additional funding from the City of Grand Rapids, Flagstar Bank, and the MEDC.

The first project funded through the Affordable Housing Loan Fund was a Dwelling Place Community Land Trust "for-sale" development in the Garfield Park neighborhood on Grand Rapids' southeast side. The development broke ground in August 2023. When complete, it will feature 42 homes available for purchase by missing middle and low-income earners.

Kent County Affordable Housing Loan Fund Background

The Kent County Affordable Housing Loan Fund was established after the Kent County Board of Commissioners appropriated $17.5 million in American Rescue Plan Act (ARPA) funds to address the county's affordable housing shortage. Kent County partnered with IFF, a Community Development Financial Institution, which matched County dollars 2.33:1, adding $40.83 million to the Affordable Housing Loan Fund for a total of $58.33 million.

A 12-member Kent County Revolving Loan Housing Fund Advisory Committee recommended the loan parameters. The loan fund will support rental and homeownership developments that meet the following affordability requirements:

• Rental projects will be priced appropriately for households earning at or below 80% of the county-wide area median income. Eighty percent of Area Median Income (AMI) for a family of four currently in Kent County is $71,600.
• Homeownership projects will be priced appropriately for households earning at or below 120% of the county-wide area median income. One hundred and twenty percent of AMI for a family of four currently in Kent County is $107,400.
• All projects will be required to maintain affordability requirements for at least 20% of the housing units for at least ten years or the length of the loan period, whichever is longer.

The Affordable Housing Loan Fund launched in August 2023. For more information, visit https://iff.org/mahlp/.

###

About Kent County

The County of Kent government serves a diverse population of more than 650,000 residents, making it the fourth largest county in Michigan. The County provides a wide range of essential services in the following areas: law enforcement, correctional facility, three court systems, elections, social services, public health, park system and vital records. Additionally, it has operating agreements for the maintenance of County drains, solid waste and road, mental health services, and with the Gerald R. Ford International Airport and John Ball Zoo. To learn more about Kent County services, visit www.accesskent.com.

About IFF

Grounded in equity and deep sector expertise, IFF is a nonprofit Community Development Financial Institution (CDFI) that champions nonprofits to shape more equitable and vibrant communities through community-centered lending, development, and real estate consulting. Since 1988, IFF has been working at the intersection of facilities and finance and has provided $1.6 billion in flexible, affordable financing to nonprofits serving a variety of sectors in order to increase their financial stability and programmatic offerings. Headquartered in Chicago, IFF serves the Midwest from regional offices in Cleveland, Columbus, Detroit, Grand Rapids, Indianapolis, Kansas City, Milwaukee, and St. Louis. To learn more visit iff.org or follow IFF on LinkedIn and Facebook @iffcdfi.

Public link

Please use the above public link if you want to share this noodl on another website.