Hartford Terrace in Muskegon to receive $ 18 million renovation with funds for low income housing

MUSKEGON, MI – An $ 18 million project will make major improvements to a decades-old public housing apartment building in downtown Muskegon.

The Muskegon Housing Commission plans to renovate Hartford Terrace, 1080 Terrace St., with funding from a recent Low Income Housing Tax Credit (LIHTC) from the Michigan State Housing Development Authority (MSHDA).

The Muskegon project received a 10-year LIHTC award valued at $ 1.44 million.

“We are just delighted to be able to reinvest money in the town of Muskegon and in this building that has been around for a long time. It’s a part of the community, and it’s a small community within the community, ”said Angie Mayeaux, executive director of the Muskegon Housing Commission.

The Muskegon Housing Commission operates the 160-bedroom apartment building. Hartford Terrace is home to seniors, people with disabilities or earning 30% or less of the region’s median income in Muskegon County.

“We are a vulnerable population,” Mayeaux said.

Plans for the project include renovating each apartment with new kitchens, bathrooms, flooring and an updated heating system. Common areas such as the café, community hall and meeting room will also be improved.

The main building systems, elevators, windows and exterior will be rehabilitated. In addition, six more accessible units will be developed for a total of 16.

Mayeaux says this is the first time Hartford Terrace has received this level of investment since its construction in 1973. The influx of funding will allow the housing commission to move forward with long-term repairs and improvements. date of buildings.

“It just makes us more sustainable because we drown in maintenance,” she said.

Related: Two Grand Rapids projects received public funds for low-income housing

The Muskegon Housing Commission partnered with Ethos Development Partners on the project. The Detroit-based developer works primarily with nonprofits and housing authorities on major projects requiring significant funding.

“This is a really important project because it preserves affordable housing that is desperately needed, and for the town of Muskegon, it is good because it is an investment of $ 18 million in the building. It’s kind of a win-win for everyone, ”said Joe Heaphy, president of Ethos Development.

Hartford Terrace was one of 25 projects to receive a LIHTC award in the last round of funding announced on July 15.

The federal program administered through the MSHDA encourages private investment in affordable housing by allowing investors to purchase tax credits.

“We want to make sure these are beneficial to residents as there is a great need for safe, decent and affordable housing statewide and to preserve existing affordable housing assets,” Heaphy said.

To qualify for tax credits, Hartford Terrace is in the process of being converted to project voucher housing through the US Department of Housing and Urban Development’s Rental Assistance Demonstration Program.

The federal agency says the program allows public housing authorities to seek private investment to fill a $ 26 billion backlog in maintenance.

The Muskegon Housing Commission will retain control and ownership of Hartford Terrace through a new entity, Hartford Terrace Limited Dividend Housing Association Limited Partnership.

Mayeuax said that despite the changes and improvements, the rent and tenants of the building will remain the same.

“It’s about keeping this housing and helping us survive so that it is not lost for a community,” she said.

The renovations are expected to begin next fall and be completed by summer 2023.

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