MSHDA launches program to increase attainable housing stock

The Missing Middle Housing Program will assist in funding construction costs for rental and for-sale housing developments
Published: Sep. 20, 2022 at 1:50 PM EDT
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LANSING, Mich. (WLUC) - The Michigan State Housing Development Authority (MSHDA) launched a new program Tuesday to address the lack of attainable housing and other housing challenges amplified by the pandemic.

The Missing Middle Housing Program will utilize federal resources allocated under the American Rescue Plan Act of 2021 to provide funding to developers investing in, constructing, or substantially rehabbing properties.

The qualifying properties will target residents with household incomes between 185% and 300% of the Federal Poverty Guidelines (FPG) to encourage economic mobility and increase the attainable housing stock of both rental and for-sale properties in Michigan.

“The COVID-19 pandemic exacerbated areas of concern in our state’s existing housing stock,” said Chad Benson, rental development director at MSHDA. “With the launch of the Missing Middle Housing Program, we can collectively address these issues and rebuild Michigan’s housing availability through strategic investments that will grant a large demographic of residents access to quality, safe, attainable housing.”

A total of $50,000,000 was allocated to Michigan for the creation of the Missing Middle Housing Program. $15,000,000 will be available in the first round of funding, which opens for nonprofit developers or nonprofit/for-profit partnership applicants on Sept. 19, 2022.

A second round of funding is anticipated to open in spring 2023 for $33,000,000. At least 30% of the funds must be allocated to rural projects.

To qualify for the Missing Middle Housing Program, applicants must be a tax-exempt organization under section 501(c)(3) of the IRS code of 1986, 26 USC 501, and must be eligible to do business in Michigan with proven experience. The Missing Middle Housing Grant will have a 10-year compliance period to ensure the projects remain attainable for the missing middle demographic.

Interested applicants can find details and a link to the application portal at Missing Middle Housing Program ( or receive assistance with their application submission by emailing