LANSING, MI: The Michigan State Housing Development Authority (MSHDA) announced a historic Fiscal Year 2025, investing a record $2.61 billion in housing statewide and supporting nearly 45,000 low- and moderate-income Michiganders. While helping the greatest number of homebuyers in the agency’s 59-year history, it also celebrated one of the most productive years for creating and preserving multifamily housing.
“We set ambitious goals for 2025 and I’m proud we exceeded them. Along with our partners, we continued to make major strides toward addressing the state’s housing crisis,” said MSHDA CEO and Executive Director Amy Hovey. “By investing in proven housing solutions and launching new, innovative tools and programs, we removed barriers, expanded access, and created more opportunities for our neighbors across the state.”
In FY 2025, MSHDA produced, preserved, or financed 12,414 housing units, nearly 2,000 more homes than its annual target. Investments included $2.19 billion for multi- and single-family housing, $287 million in rental assistance, and more than $129 million in community, neighborhood, and homelessness-prevention grants.
It’s worth noting this is the fourth consecutive year of growth in the agency’s housing investment, going from $756 million in 2022, $1.23 billion in 2023, and $2.16 billion last fiscal year.
Introduced Innovative Solutions
MSHDA introduced several groundbreaking initiatives that helped fuel housing development and single-family mortgage production this fiscal year, including:
- The Housing Accelerator Fund, a revolving capital fund that bridges financing gaps for mixed-income housing and expands affordable development statewide.
- The pilot Employer-Assisted Housing Fund, which empowers employers to help workers overcome barriers to homeownership and rental housing.
- The Tobias Harris Homeownership Initiative, a shared-appreciation mortgage pilot in Detroit created in partnership with the veteran Detroit Piston.
- The MSHDA Rate Relief Mortgage, a partnership with the Federal Home Loan Bank of Indianapolis that lowered interest rates for qualified first-time buyers helped 300 households afford homeownership. (Program funds are no longer available.)
“These tools strengthened our partnerships with employers, community organizations, and the private sector,” Hovey said. “They brought new energy, new capital, and new solutions to Michigan’s housing challenges.”
Expanded Homeownership
Bolstered by legislation and innovative temporary programs, MSHDA helped 5,245 people become homeowners this fiscal year, investing more than $775 million in mortgages and down payment assistance.
Governor Whitmer signed a bipartisan bill that increased the outdated maximum home purchase price limits after more than a decade, helping open more doors than ever to homeownership. Doubling acreage limits also helped boost sales in rural areas, including the Upper Peninsula. This move helped MSHDA expand its reach with loans to buyers in 80 of Michigan’s 83 counties.
Supported Housing Stability
MSHDA's Rental Assistance and Homeless Solutions programs helped more than 32,500 households obtain and maintain their housing stability through Housing Choice, Project-Based and Veterans Affairs Supportive Housing vouchers, as well as other programs.
In support of homeless prevention, MSHDA helped launch a $3 million Shelter Diversion Program pilot that provided stable housing to more than 1,400 households in six communities. It was so successful, it received $1 million to expand and extend diversion and stabilization services to an additional six communities and 19 more counties, reaching hundreds more families. Together, these efforts improved outcomes, reduced shelter entries and advanced Michigan’s broader strategy to prevent homelessness before it occurs.
Removed barriers
MSHDA continued its commitment to reducing administrative barriers by investing in the launch of Great Lakes Housing Services and enhancing the simplified MI Neighborhood development application.
“These improvements ensure that developers, community organizations, and local governments, no matter their size, have the tools they need to deliver more housing, faster,” Hovey said.
MSHDA still has challenges to address in the next fiscal year, from federal policy uncertainties to the housing supply gap.
“As we enter 2026, we know we still have a 119,000-housing unit shortage, but we’re ready to build on last year’s foundation of innovation, efficiency, and strong partnerships to chip away at it,” said Hovey. “Working together, we can be successful in creating a Michigan where every person can find a quality, affordable place to call home.”
For more on our remarkable year, find MSHDA’s 2025: A Year of Housing Impact, with high-level visual highlights, and for a more in-depth look, the FY 2025 Housing Production Goals Report, at Michigan.gov/MSHDA.
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About MSHDA
The Michigan State Housing Development Authority (MSHDA), established in 1966, provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues.
