MI Neighborhood Program (Housing Development Grants)

Purpose: MI Neighborhood is a statewide grant program that blends state Housing and Community Development Fund (HCDF) and federal CDBG resources to accelerate housing production and preservation aligned with regional action plans under the Statewide Housing Plan. Funds support housing activity components to add new units and improve existing homes, prioritized to projects most aligned with their region’s plan and reviewed in order of receipt within regional investment targets. Eligibility: Applicants must be a local unit of government, a qualified 501(c) nonprofit with at least one full-time staff member and a sustainable operating budget, or a for-profit developer registered with LARA (SAM.gov required if using federal funds). Individuals are not eligible. Applicants must have site control for new unit and unoccupied rehab activities. Occupied rehab activities are limited to local governments and nonprofits. Projects must target households up to 120% AMI, with at least 20% of units at or below 60% AMI. Project eligibility: Two primary components are funded. 1) Rehabilitation (occupied): energy efficiency, accessibility, minor repair, exterior rehab, substantial rehab and rental redevelopment of existing vacant residential units in mixed-use buildings (subject to program rules). 2) New Units and unoccupied rehabilitation: construction or redevelopment of single-family for-sale or rental units, redevelopment of vacant lots or vacant residential structures. Affordability restrictions apply via regulatory agreements/liens. Application process: MI Neighborhood 3.0 launched on 10/06/2025. Applications are submitted through MSHDA’s IGX grants system. For FY25, submissions are grouped for review as follows: Group 1 (10/06–10/17/2025), Group 2 (10/18–10/31/2025), Group 3 (11/01–11/15/2025), Group 4 (11/16–11/30/2025), and Group 5 (12/01–12/12/2025). Applications are reviewed in order of receipt within each region; recommended awards proceed to the MSHDA Board. Applicants are notified within about 90 days of submission, with grant execution typically within 120 days. All awarded submissions must have executed grant agreements by 06/30/2026, and project funds must be fully disbursed within 24 months of grant agreement. A separate LOI process applies only to local governments seeking CDBG funds.