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Lansing housing project secures state funding for middle-income households

Urban system developer, city and state officials pose in front of the REO Gate Project buildings along South Washington Avenue in Lansing.
Urban Systems
Urban system developer, city and state officials pose in front of the REO Gate Project buildings along South Washington Avenue in Lansing.

The Michigan State Housing Development Authority is investing $1.68 million dollars to provide more housing options in Lansing.

Officials gathered in the REO Town today Tuesday to announce twenty-four new housing units along South Washington avenue.

The state’s funding comes from the Missing Middle Housing Programaimed at incentivizing local developers to offer housing options for households earning between 60% and 120% of average median income. For instance, a one person household would need to make between $38,585 and $77,640 dollars per year.

“Its funding going directly to developers in the form of grants to help make up for the loss of revenue that they would receive if they were to develop housing that is strictly market rates,” said Amy Hovey, CEO and executive director of the Michigan State Housing Development Authority.

About a year ago, state legislators appropriated $110 million dollars from the American Rescue Plan Funds for the Missing Middle Housing Program in response to a state shortage of affordable homes.

According to 2022 U.S Census data more than 40% of renters in Michigan spent more than 30% of their household income on rent, with the majority of renters paying at least $1000 per month.

“Across the state we are about 190,000 housing units short where we need to be and in the Lansing area we are about 7,000 units short,” Hovey said.

Funding from the Missing Middle Program is allowing Urban Systems developers for the Reo Gateway Project to list the units between $1000 and $1400 dollars per month.

These new twenty-four units will be incorporated into Reo Gateway Project’s already existing 72 units.

“The new building is all one bedroom because that's our largest demand, and also as an elevator in it for accessibility,” said Brent Forsberg, Urban Systems developer.

To adhere to state guidelines, developers must verify incomes of all renting families to ensure their eligibility for subsidized housing. These requirements will remain in effect for the next decade according to information from the state.

As WKAR's Bilingual Latinx Stories Reporter, Michelle reports in both English and Spanish on stories affecting Michigan's Latinx community.
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