MI Neighborhood Program (Housing Development Grants)

The MI Neighborhood Program, administered by the Michigan State Housing Development Authority (MSHDA), is a statewide initiative combining state Housing and Community Development Fund (HCDF) and federal Community Development Block Grant (CDBG) resources. The program aims to preserve existing housing stock, expand housing production, and address local housing shortages in strategic alignment with Michigan's Statewide Housing Plan and Regional Housing Partnership action plans.

Eligible applicants include units of general local government, 501(c) nonprofit organizations serving the proposed community, for-profit developers meeting MSHDA LDHA requirements, and federally recognized tribal nations sharing geography with Michigan. Nonprofits must maintain at least one full-time employee, operate from an independent office, and present a viable operating budget through FY 2026. CDBG resources cannot be deployed in federal entitlement communities, and individuals are not eligible to apply directly for funding.

Eligible projects focus on occupied and unoccupied housing rehabilitation (including energy efficiency, accessibility, minor home repairs, exterior upgrades, substantial rehabilitation, and vacant rental redevelopment) and new unit construction (such as single-family for-sale or rental developments, and infill redevelopment on vacant parcels). Assisted units must serve households earning up to 120% of Area Median Income (AMI), with a minimum of 20% of project units restricted to households at or below 60% AMI. Assisted properties require recorded liens or regulatory agreements of at least five years to guarantee long-term affordability.

Applications must be submitted electronically through the MSHDA IGX online grant management system. Applications are reviewed on an ongoing basis. MSHDA notifies applicants of determinations via email within 30 days of submission, with executed grant agreements targeted within 90 days. Proposals are evaluated based on applicant eligibility and organizational capacity, feasibility, timeline, community need, geographic distribution, and alignment with Regional Housing Partnership priorities.