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Grand Rapids receives $6.1 million to help build affordable housing amidst housing shortage

The money will aid in building five housing projects set to start across all wards of the city, as the city needs more than 14,000 units to satisfy demand by 2027.

GRAND RAPIDS, Mich. — The city of Grand Rapids has been awarded $6.1 million that will support the development of dozens of new homes across the city's three wards. The city says these projects are aimed at providing affordable housing and will provide opportunities for renters and those looking to become homeowners.

This comes amidst the city's daunting task, as the Ottawa and Kent County Based group Housing Next, says that the city will need more than 14,000 new units by 2027 to meet housing demands. 

"The most recent housing needs assessment documents a very significant need for housing, both rental and homeownership at all price points," said Jono Klooster, the Acting Economic Development Director for the City of Grand Rapids.

"We know that there's funding out there for different types of projects and funding for affordable projects is certainly not enough," Klooster explained in light of the need for more affordable housing.

These five projects are spread out across the city and include renovations of existing buildings, multi-phase developments, a new four-story structure, and the redevelopment of the former Seymour Christian School. 

"The projects that we're supporting here with this grant kind of fall in that below market rate, so some of them are serving households at 80% area median income or below, but then they do go down further than that to below 60%, as well," said Klooster.

Klooster also adds that an increase in affordable housing is expected to help alleviate other problems as well, such as employers looking for new hires.

"I know that employers are very anxious to see more housing be developed to provide to allow opportunities for their employees to live in Grand Rapids and for them to attract new employees."

The effort he says will improve the quality of life for those in the city.

"If you're struggling to afford rent, or you're having a hard time getting into homeownership, that just leads to compounded problems in in your day to day life, so everything we can do to contribute to residents of Grand Rapids being stably housed," added Klooster.

The grant was awarded to Grand Rapids as a part of the Michigan Economic Development Corporation’s second round of the Revitalization and Placemaking Program.

A press release from the city details the five projects that are receiving funds from the grant:

  • $500,000 for The Emory – The grant will support the renovation of the second floor of the building located at 2040 Division Avenue S. and will result in affordable rental housing to compliment the planned first floor artistic space. The $2,635,500 project is under development by The Diatribe, Inc.
  • $960,000 for Benjamin Flats – The grant will support the first phase of what is planned to be a multi-phase development at 916 Benjamin Avenue NE.  The first phase will provide 16 rental housing units for households earning approximately 70-80% of the area median income (AMI). The $3,651,027 project is under development by Third Coast Development LLC.
  • $1,890,000 for Seymour Condominiums – The grant will support the redevelopment of the existing building and result in 27 condominiums available for home ownership.  Plans call for 14 units to be sold to households earning at or below 80% AMI, and 13 units to households earning between 80-120% AMI. The $10,872,048 project is under development by ICCF Community Homes.
  • $1,720,000 for Southtown Lofts – The grant will support demolition of the existing building, and construction of a new, four-story structure with first floor office, and 12 rental apartments on the upper floors for households earning at or below 60-80% AMI. The $4,114,290 project at 640 Eastern AVE SE is under development by Larlen Communications Inc., the existing owner and operator of the building.
  • $1,059,256 for 2017 Eastern – The grant will support renovation of the existing building located at 2017 Eastern Avenue SE, retaining the USPS as a commercial tenant, and adding 16 rental apartments in what is currently vacant space.  The apartments will target households with incomes ranging from 45-100% AMI. The $3,661,883 project is under development by Apposite Properties LLC.

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