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Employer-Assisted Housing

Employer-Assisted Housing

Employer-Assisted Housing Guide title graphic

Employer-Assisted Housing Fund 

Michigan’s workforce is growing, but housing options aren’t keeping pace. The Employer-Assisted Housing Fund is a bold, state-funded initiative designed to help employers invest in housing solutions for income-eligible households. By bringing together employers, local governments, housing professionals, and MSHDA, the Employer-Assisted Housing Fund tackles one of Michigan’s most pressing economic challenges, ensuring workers have access to affordable homes near their jobs.

Why It Matters

  • From 2014 to 2023, Michigan built just one new home for every 14 new jobs—leaving thousands of workers struggling to find housing.
  • Employers see the issue firsthand but often lack the resources to make a meaningful impact—until now.

How It Works

Backed by $10 million in state funding, MSHDA will administer the Fund, which offers direct support to employers willing to invest in housing for local workers. Employers that contribute matching funds—whether through cash investments, land donation, a below-market interest loan, or some combination thereof—may qualify for resources through the Fund to help develop new housing options. In return, rental housing must remain affordable for at least 10 years and for-sale housing must remain affordable for five years—ensuring long-term impact.

This is more than an investment in housing; it’s an investment in Michigan’s future. With employer collaboration, we can strengthen communities, boost economic stability, and make sure Michigan’s workforce has a place to call home.

How to Apply

  1. Request a SharePoint Folder: Fill out this form to request a folder. After submitting the form, you’ll receive an email with a folder link and further instructions.
  2. Submit Your Application: Upload your completed Employer-Assisted Housing Fund Pilot Application to your SharePoint folder.
  3. Include Required Documents: Upload all necessary documents listed in the Required Documentation Checklist (found within the application).

Important Application Details

  • First Come, First Served: Completed applications will be reviewed in the order they are received. Funding consideration will be given accordingly.
  • Portal Closing: The application portal will close once MSHDA has received enough complete applications.

 Types of Employer Assisted-Housing

 

Down Payment Assistance

Down payment assistance is one of the most common types of employer-assisted housing solutions available. An employer can offer a loan or grant to cover the down payment for a single-family home, down payments are the most common barrier to homeownership.

Employer down payment assistance programs:

  • Covenant HealthCare: In Saginaw, Covenant HealthCare is supporting their employees with down payment assistance to buy a home, as well as investing in a comprehensive neighborhood revitalization program in the area surrounding their Cooper and Harrison facilities, in collaboration with Saginaw-Shiawassee Habitat for Humanity. In addition to DPA for employees, Covenant incentivizes employee participation in rehabilitation of aging homes and neighborhood cleanup efforts, and also donated land for two new modular homes recently purchased with MSHDA's financial support.
  • This can be coupled with MSHDA’s MI 10K DPA, a $10,000 loan offered to qualified homebuyers statewide for down payments, closing costs, and other homebuyer expenses.

Land Donation or Ground Lease

An employer may have land to donate to develop into affordable housing.

  • University of Michigan Health - Sparrow: University of Michigan Health has donated nine homes adjacent to its Sparrow Hospital campus on Lansing's Eastside to the Ingham County Land Bank and Habitat for Humanity Capital Region. The Land Bank and Habitat for Humanity plan to extensively renovate all of the homes, including converting several duplexes back to single family homes, in preparation to sell them to aspiring homeowners.
    • Contact: Alan Fox, Ingham County Treasurer & Land Bank Chair (AFox@ingham.org)

Real Estate Development

Employers are exploring a variety of housing solutions to support and retain their workforce, including real estate development.

Real estate development projects:

  • Shorts Brewery: Shorts Brewery purchased the Bellaire Inn to address northern Michigan’s seasonal and workforce housing shortage.
  • Whirlpool: Whirlpool invested $27 million in the 90,000 sq. ft Emma Jean Hull Flats apartments. An 80-unit waterfront development in downtown Benton Harbor, Michigan, added100 permanent residents who are actively connected to the local community and will add $100K/ year to the city's income tax fund and 3.5 million in discretionary spending to the local community. WHR's global headquarters is located in Benton Harbor.

Housing Equity Funds

Employers invest money into an equity fund that uses the capital to make investments in housing developments. These housing investments are generally selected to meet certain criteria and objectives set by the investor.

Companies supporting housing equity fund projects:

  • Cinnaire’s Low-Income Housing Tax Credit Investments in Michigan: The federal Low-Income Housing Tax Credit (Housing Credit) is a proven, successful program that was established in 1986 and enjoys broad bipartisan support. It was created to create market incentives to develop and preserve affordable housing. Investors use the Housing Credit to reduce their federal tax liability while also bringing much-needed capital to affordable housing production and preservation.     
  • Mercantile Community Partners: A subsidiary organization of Mercantile Bank that provides financial solutions to support community development and the growing need for affordable housing.

Direct Housing Subsidy for Employees

An employer or organization can also help employees directly, in the form of a stipend, which can cover or offset the cost of housing. This can be used as an incentive for specific working locations, or wage ranges.

Contact MSHDA

For more information about ways you can partner with MSHDA to support your employees with housing solutions, contact MSHDA Employer-Assisted Housing Fund staff at MSHDA-EAHF@michigan.gov.

 

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