Gov. Whitmer highlights new investments to “Build, Baby, Build” more homes
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LANSING -- On Thursday, Governor Gretchen Whitmer highlighted new investments in the FY27 budget to expand affordable housing and help Michigan families find affordable places to live in vibrant communities. The budget also strengthened efforts to prevent and end homelessness in Michigan.
"Every Michigan family deserves an affordable, quality place to live, work, and play," said Governor Whitmer. "I'm proud of the bipartisan work we've done to build more affordable homes and close the housing supply gap. Over the last seven and a half years, we've built more homes than any administration in state history and lowered costs for every Michigander, making it possible for more people to become homeowners. This year's budget gives governments and communities even more tools to keep moving forward. By building more homes and helping Michiganders stay housed, we're making Michigan a place where more people can thrive. Let's keep getting it done."
"Michigan's housing needs are different from community to community, which is why having a range of tools matters," said Michigan State Housing Development Authority (MSHDA) CEO and Executive Director Amy Hovey. "These investments give us more ways to help communities build and preserve affordable housing, strengthen neighborhoods and support Michiganders who are struggling to find or maintain a safe place to call home. We're ready to put these resources to work with our partners across the state."
Signed into law by Gov. Gretchen Whitmer last month, the bipartisan fiscal year 2027 budget includes $50 million for the Michigan Housing and Community Development Fund, $5 million for permanent supportive housing and $4 million to support communities working to prevent and end homelessness. The budget also established the new Michigan Housing Opportunity Tax Credit to help finance thousands of new affordable rental housing units every year.
Before implementation of Michigan's first Statewide Housing Plan began in 2022, the state faced an estimated 190,000-unit housing shortage. Today, that gap has fallen to approximately 97,000 units. The bipartisan fiscal year 2027 budget gives MSHDA and its partners additional tools to keep building.
Expanding affordable housing opportunities
The new Michigan Housing Opportunity Tax Credit gives MSHDA a powerful new tool to help make affordable rental housing developments financially feasible.
The state credit will leverage the federal Low-Income Housing Tax Credit as well as additional private investment. It is expected to support approximately 2,500 affordable rental homes annually. The program will support both new construction and preservation, with at least 30% of available credits designated for qualifying rural projects based on greatest housing need.
The Michigan Housing and Community Development Fund (HCDF) also received $50 million in the enacted budget to support the development and preservation of affordable housing and the revitalization of neighborhoods and downtowns.
Together, these programs provide complementary resources to help communities address local housing needs and expand opportunities for residents to live in the communities they call home.
Strengthening Michigan's response to homelessness
The FY27 budget includes $4 million for Michigan's Continuums of Care (CoCs) to support efforts to prevent and end homelessness.
Eligible uses include eviction prevention, street outreach, rental assistance, supportive services, emergency shelter, transitional housing and other eligible activities. Priority will be given to maintaining rapid rehousing and permanent supportive housing projects that do not receive federal fiscal year 2026-27 CoC funding.
The state has also invested $20 million through a Make it in Michigan Competitiveness Fund grant to further support regional planning bodies working to prevent and end homelessness. MSHDA is partnering with the state's CoCs to assess local needs and develop a plan for deploying new state resources. As part of this effort, the agency will begin collecting information from CoCs about existing programs, local priorities, and unmet needs. This information will help shape a coordinated statewide strategy for resource allocation and implementation.
The state investment comes as federal funding for fiscal year 2026-27 CoC projects remains uncertain due to ongoing litigation.
“We'll keep fighting to connect Michiganders with the resources they need to thrive," said state Sen. Jeff Irwin (D-Ann Arbor). “That includes the support Democrats won in the state budget for affordable housing and services for people experiencing mental health challenges. This critical funding counters federal cuts in order to keep people housed and to support people who need help to find a safe, stable place to live.”
"When someone has a safe, stable place to live, so much else becomes possible. They can focus on their health, their family, their work and the people who depend on them rather than worrying about where they will sleep. These funds will help more Michiganders have that stability and the opportunity to build a more secure life. That is an investment worth making," said state Rep. Cynthia Neeley (D-Flint).