Two local workforce housing projects were awarded more than $20 million in combined state funding this week, including Orchardview Apartments in Traverse City and the Flats on Bridge in Elk Rapids. Governor Gretchen Whitmer also made a surprise appearance Friday at the Northern Michigan Policy Conference in Acme to announce the launch of the Employer-Assisted Housing Fund, a new matching fund to support businesses addressing Michigan's workforce housing shortage.

The Traverse City Housing Commission (TCHC) was awarded $1,360,500 through the Low-Income Housing Tax Credit (LIHTC) program for Orchardview Apartments. LIHTCs are federal tax credits allocated by the Michigan State Housing Development Authority (MSHDA) through a competitive application process. Developers can claim credit against their tax liability annually for up to 10 years, according to a state release, meaning TCHC could receive a total possible funding credit of up to $13,605,000 over the next decade.

In partnership with Cove Investments, TCHC is renovating the existing 21 units at Orchardview Apartments and building an additional 33 housing units on-site. The project is expected to have a total development cost of over $20 million. "The project is being financed by a nine percent tax credit award and a conventional mortgage from CPC Mortgage Company LLC," according to the state release. When complete, the site will offer 54 one-, two-, three-, and four-bedroom affordable housing units for households earning between 40 percent and 60 percent of the area median income (AMI). Twenty-one of these units will receive rental assistance through TCHC.

Traverse City leaders last year approved a rezoning request to accommodate Orchardview's expansion and also approved a payment-in-lieu-of-taxes (PILOT) agreement for the project. TCHC sought a four percent PILOT agreement with a term of 45 years, meaning units must remain income-restricted for the 45-year duration of the agreement. Groundbreaking on the new units is expected to start in the spring of 2026, TCHC Executive Director Karl Fulmer tells The Ticker. Orchardview Apartments is located on Carter Road in the part of the City of Traverse City located in Leelanau County.

The Flats on Bridge in Elk Rapids was also awarded $7.9 million ($790,720 annually for 10 years) through the LIHTC program by MSHDA this week. The Village of Elk Rapids previously agreed to sell property at 401 Bridge Street to the HomeStretch Nonprofit Housing Corporation for $1 to support the workforce housing project. Elk Rapids Township agreed to sell an adjoining lot to the village for $100, which was bundled into the development site. Elk Rapids Village Council members also approved a zero percent PILOT for the project.

"Flats on Bridge is sponsored by Ide Development LLC and HomeStretch Nonprofit Housing Corporation," according to the state release. "This development is being funded with a nine percent tax credit award along with a permanent loan through IFF and an Affordable Housing Program (AHP) award from the Federal Home Loan Bank of Indianapolis."

The project is expected to have a total development cost of over $8 million and will create 24 apartments, including a mix of one-bedroom, 650-square-foot units and two-bedroom, 960-square-foot units. Rentals will be dedicated to tenants earning between 30 percent and 80 percent AMI. Rents will range from approximately $500 to $1,400 per month depending on the income restriction, according to HomeStretch.

"We are grateful for Governor Whitmer and MSHDA’s continued investment in needed affordable housing in the Grand Traverse region," says HomeStretch Executive Director Jon Stimson.

Whitmer made a surprise unscheduled appearance Friday at the Northern Michigan Policy Conference, which was hosted by the Northern Michigan Chamber Alliance at Grand Traverse Resort & Spa in Acme. At the event, she announced the launch of a new $10 million Employer-Assisted Housing Fund. According to a new project website, the MSHDA-administered fund will offer "direct support to employers willing to invest in housing for local workers." Employers that kick in matching funds – including cash investments, land donations, below-market interest loans, or some combination of those contributions – can qualify for program support to help develop new housing.

In order to qualify, rental housing "must remain affordable for at least 10 years and for-sale housing must remain affordable for five years – ensuring long-term impact," according to the website.  Applications will be reviewed on a first-come, first-served basis. MSHDA will begin accepting applications on Monday, February 24. The Employer-Assisted Housing Fund will be supported by this year’s state budget appropriations, with additional funding possible through further legislative support.

The new program will "bring businesses, local government, developers, and MSHDA together to build housing for employees," Whitmer said. "If we want people to move to our communities for work, they need affordable places to call home nearby."

Pictured: Flats on Bridge, rendering. HomeStretch notes the final design of the project could change slightly but the aesthetic in the rendering will be close to the actual building.