STATE HOUSING AUTHORITY ANNOUNCES OVER $1.9 MILLION IN MORTGAGE LOAN COMMITMENT FOR AFFORDABLE FAMILY HOUSING IN KALAMAZOO

Contact: Office of Communications 517-373-0011

Agency: State Housing Development Authority

The Michigan State Housing Development Authority (MSHDA) today announced that a new 69-unit rental development for low to moderate-income families will be built in Kalamazoo with the help of a $1,929,000 mortgage loan.

"I am pleased that MSHDA remains committed to helping residents throughout Michigan achieve affordable rental housing," MSHDA acting executive director Rick Laber said. "This development is an example of how the Authority is working to increase the supply of affordable apartments that have rent levels within reach of our state's elderly and low- to moderate- income families."

Kalamazoo Rosewood will be located on the east side of 12th Street between Starlite Street and Parkview Avenue in Kalamazoo. It will consist of 10 one-bedroom, 28 two-bedroom and 18 three-bedroom townhomes and 12 three-bedroom duplex units. in 11 two-story buildings. Amenities will include dishwashers, central air conditioning, individual washers and dryers and balconies or patios. The duplex units will have garages.

Seventeen units will be designated for tenants with special needs and will be targeted toward those persons and families that contain persons with developmental or mental disabilities, along with non-disabled persons and families facing homelessness or the victims of domestic abuse. The sponsor will provide various services in conjunction with available services through Kalamazoo County Community Mental Health Services and the Kalamazoo County Family Independence Agency.

Total development cost for Rosewood is $9,221,092. The development will be financed under the Taxable Bond program with the federal Risk Sharing Program in conjunction with the federal Low Income Housing Tax Credit. The mortgage is a 35-year loan at a 7 percent interest rate. Since the development is located in an eligible distressed community, the monthly payments will be made at a "pay rate" of 6.5 percent. The developer will restrict rent levels on all 69 units.

The financing also will include a MSHDA HOME Supportive Housing loan in the amount of $811,000, and two City of Kalamazoo HOME loans totaling $500,000.

Laber said the investments will create approximately 135 full-time, year-long jobs in construction and related trades.

Initial occupancy for Kalamazoo Rosewood is scheduled for July 2005.

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