COLDWATER, MI (WTVB) – The redevelopment and renovations of 48 units at the Old Mill Race Apartment complex at 517 West Chicago is among 17 projects in the State of Michigan that will be getting federal Low-Income Housing Tax Credits from the Michigan State Housing Development Authority.
Governor Gretchen Whitmer announced funding to build or improve nearly 700 affordable housing units this past Friday.
The governor’s office said in a news release that the total development costs is anticipated to be around $176.6 million. In addition, they claim over 60 permanent jobs and over 1,100 temporary jobs will be created.
The owners of Old Mill Race Apartments are CRA Development, LLC and Cove Investments, LLC. They will get over $434,000 of the nearly $14 million in tax credits that have been granted by MSHDA.
Developers can claim credits against their tax liability annually for up to 10 years. The initiative is designed to help incentivize investments in affordable housing in local communities across the state. This current round of funding will enable the creation or preservation of 683 total rental units.
Governor Whitmer said, “As rents and home prices go up across the state, it’s clear that quality, affordable housing is out of reach for far too many Michiganders. We must build more housing, which is what makes this program so important. It’s also why I signed the bipartisan Building Michigan Together Plan last year, which included the ambitious goal of building or rehabilitating 75,000 housing units within the next five years. These are the types of steps we need to take to make sure every Michigander has a safe, affordable place to call home.”
Plans to redevelop the Old Mill Race Apartments got some financial help last May when the Coldwater City Council approved an ordinance which implements a Payment In Lieu of Tax policy which is also known as a PILOT.
City Manager Keith Baker said at the time that the proposed project would include CRA Development Group spending $2-point-5 million to upgrade the 48 units and all of the buildings.
The property owners feel the renovations are long overdue. Old Mill Race was built almost 40 years ago and is targeted to low and moderate income families.
Pouring more money into a bottomless pit is not the answer.