Michigan is helping employers in Detroit and Kalamazoo build new housing for their workers under a program that state officials want to continue but lawmakers have not yet endorsed.
The projects approved last month by the Michigan State Housing Development Authority, totaling $3.2 million, will drain the remaining balance of what was a $10 million pot first unveiled by Gov. Gretchen Whitmer in January 2025.
At the time, Whitmer noted the state had only added about one housing unit for every 14 jobs created between 2014 and 2023, contributing to a housing crisis state officials have more recently been working to address.
The new Kalamazoo project will create housing for employees of Bronson Methodist Hospital, one of the city’s largest employers, while the Detroit project is expected to turn vacant lots into homes for workers from multiple firms.
Lawmakers did not include additional money for the Employer-Assisted Housing Fund in the new state budget approved in October, but that may just be a “bump in the road” for the larger effort, State Housing Development Authority Executive Director Amy Hovey told Bridge Michigan.
As of January, state data indicates the assisted housing fund has helped create a total of 619 rental units or homes, 232 of which will specifically be for employer-assisted housing.
While the state has put forward $10 million of its own money, employers have exceeded that match rate, putting forward an estimated $11.7 million in either cash or land offerings.
As part of the fund, employers throughout the state could apply for grant dollars which then had to be matched by either a cash or land donation of equal value.
From there, the state requires that the resulting housing remain “affordable” — generally based on local median income levels — for at least 10 years if it’s a rental property, and at least five years if it is for-sale housing.
The state previously approved roughly $5.4 million in spending from the fund in May 2025 for new housing in Traverse City, Flint, Petoskey, Grand Rapids, Wyoming and Royal Oak.
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