MI Neighborhood Program (Housing Development Grants)

The MI Neighborhood Program, administered by the Michigan State Housing Development Authority (MSHDA), provides grant funding blending state Housing and Community Development Fund (HCDF) and federal Community Development Block Grant (CDBG) resources. The program supports the priorities of regional action plans and aligns strategically with Michigan's Statewide Housing Plan to expand housing availability, preserve existing housing stock, and enhance neighborhood quality of life through public amenities, housing rehabilitation, and new housing production.

Eligible applicants include local units of government, 501(c) nonprofit organizations, for-profit developers meeting Limited Dividend Housing Association (LDHA) parameters, and federally recognized tribal entities. Nonprofits must demonstrate community presence, have at least one full-time employee, maintain operations outside a private residence, and show a sustainable operating budget through fiscal year 2026. For-profit developers must be registered in Michigan with active EIN and SAM.gov registration; however, for-profit developers cannot apply for the Public Amenity activity. Individuals are ineligible to apply.

Eligible activities encompass: Public Amenities located in downtown or downtown-adjacent areas (grant maximum of $75,000); Housing Rehabilitation of occupied units (subsidy up to $40,000 per unit) and unoccupied units (subsidy up to $100,000 per unit) focusing on energy efficiency, accessibility, minor home repairs, exterior repairs, substantial rehabilitation, or vacant rental redevelopment; and New Unit Production (subsidy up to $100,000 per unoccupied unit) including single-family for-sale or rental construction and acquisition/redevelopment of vacant residential structures. Across all housing activities, projects must serve households earning up to 120% Area Median Income (AMI), with a mandatory requirement that at least 20% of units serve households at or below 60% AMI. Five-year affordability liens or regulatory agreements are required on assisted units.

Applications must be submitted online through the MSHDA IGX grant management system (mshda.intelligrants.com). Applications are evaluated on an ongoing basis according to eligibility, implementation timeline, alignment with regional action plan priorities, feasibility, community need, geographic distribution, and applicant administrative capacity. MSHDA notifies applicants of determinations by email within 30 days of submission, with executed grant agreements anticipated within 90 days.