MI Neighborhood 3.0 Program

The MI Neighborhood Program, managed by the Michigan State Housing Development Authority (MSHDA), is a strategic housing initiative funded through both state and federal sources, including the Housing and Community Development Fund (HCDF) and Community Development Block Grant (CDBG) funds. The program is aligned with the Statewide Housing Plan and aims to support housing activities such as new unit construction, rehabilitation of both occupied and unoccupied units, and related services. MI Neighborhood 3.0 introduces updated policies and funding structures, offering a total of $60 million in funding—$30 million each from HCDF and CDBG sources—for regional housing investments. The initiative supports community-focused and need-driven housing developments. Eligible activities include new unit development for rental or homeownership, and rehabilitation of existing units. All proposed activities must meet local housing codes and HQS standards. Rehabilitation of single-family homes entails a five-year lien for investments exceeding $10,000, while rental and new construction projects require regulatory agreements and construction mortgages. Funding is capped at $1.5 million per applicant and project, with award ceilings based on activity type and applicant capacity level. Match requirements vary: beginners may receive up to $500,000 with no match (aside from 10% owner contribution for rentals), while advanced applicants must provide a full 1:1 match. Eligibility is restricted to local units of government, nonprofits, and for-profit entities that meet specific documentation and ownership requirements. Individuals are not eligible to apply directly. Applications must be submitted through MSHDA’s IGX system. Each submission requires documentation such as a project proforma, site control evidence, construction timelines, zoning verification, and budget breakdowns, along with a comprehensive narrative covering organizational capacity, regional housing plan alignment, and service area data. Applications are reviewed on a rolling basis grouped by submission windows between October 6 and December 12, 2025. Each group is reviewed by MSHDA staff and presented to the Authority Board on a monthly cycle through February 2026. Awards must be executed by June 30, 2026, and projects must be completed within 24 months. Grantees must demonstrate technical capacity to operate within MSHDA’s systems and agree to electronic funds transfer protocols. The program encourages creative, community-driven proposals and prioritizes regions that have not previously received funding. All applications are subject to FOIA and MSHDA’s selection discretion. Final award decisions consider regional distribution, completeness, feasibility, and strategic alignment with the Statewide Housing Plan. Applicants may be asked to revise submissions or provide additional documentation during review. Additional program documents, guidance materials, and informational sessions are made available to assist applicants in preparing competitive submissions.

Prioritize unserved regions; document housing need clearly; ensure zoning and site control; use correct income limit and utility schedule forms.