Improving Emergency Shelter Infrastructure and Expanding Transitional Housing Program

The Improving Emergency Shelter Infrastructure and Expanding Transitional Housing (ESTH) grant, administered through the Michigan State Housing Development Authority (MSHDA), is a one-time funding opportunity supported by the fiscal year 2025 Housing and Community Development Fund. MSHDA is allocating $3 million to support critical infrastructure improvements and capacity expansions for emergency shelters and transitional housing facilities across Michigan. This initiative is led by MSHDA’s Office of Rental Assistance and Homeless Solutions and targets structural enhancements and increased unit availability to better serve individuals and families experiencing homelessness. This grant opportunity is specifically aimed at existing organizations that currently operate emergency shelter or transitional housing programs. Funding will support either improvements to emergency shelter facilities or expansion of transitional housing through leasing and furnishing of new units. For emergency shelters, funding can cover infrastructure repairs or replacements (e.g., plumbing, electrical, roofing), ADA compliance upgrades, furnishings, pest abatement, and security enhancements. Transitional housing applicants may use funds for leasing new units (up to $3,000 per month in covered rent costs), furnishing, and other necessary site improvements. However, staff salaries, services, and ongoing operating expenses are explicitly ineligible for funding under this program. Eligible applicants must be 501(c)(3) nonprofit organizations or local government entities operating within Michigan and must have a minimum of five years of experience in managing either emergency shelters or transitional housing, depending on the application type. Applicants must demonstrate financial and organizational capacity, including audited financial statements and qualified financial personnel or oversight. Organizations must also meet MSHDA’s minimum standards for housing operations, ensure equal access without discrimination, and serve populations that may include domestic violence survivors, youth, and families. Entities owned by or directly affiliated with federally recognized tribes are not eligible to apply directly but may participate as subrecipients via fiduciary partners. Grant awards for emergency shelter improvements range from $50,000 to $250,000 and require that improved properties remain in use as shelters for a minimum of five years. Transitional housing expansion awards range from $50,000 to $100,000, with a minimum use requirement of two years for leased properties, contingent on lease terms. Grant terms begin on November 1, 2025, with shelter improvement projects running through October 31, 2026, and transitional housing projects through October 31, 2027. All grantees are required to submit monthly financial reports and may be subject to MSHDA’s site monitoring and evaluation procedures. Applications must be submitted in full by October 10, 2025. A webinar will be held on September 11, 2025, to provide application guidance. Award announcements are expected by October 17, 2025. Applicants selected for funding must then provide documentation such as audits, tax returns, and operating budgets to finalize the grant agreement. Failure to meet submission or documentation requirements may result in forfeiture of the award. Only one application is required per organization, regardless of the number of project sites included. This opportunity does not recur annually and is based on a single-year allocation. Applicants should review the NOFO in full and complete all required documentation through MSHDA’s online platform, IGX. Awards are contingent upon adherence to all requirements outlined in the NOFO, including financial oversight and compliance with minimum housing standards.

Submit one application for all sites; ensure financial documentation is complete to avoid losing award.