Michigan REALTORS®, on behalf of the Michigan State Housing Development Authority (MSHDA) and all affordable housing organizations, I invite your participation in our quest to provide Michigan with an inclusive, warm, affordable-housing community.  Your support is imperative to Michigan’s affordable housing success.

Being Ambassadors

Being an ambassador to the affordable-housing industry means that Michigan REALTORS® will be available and willing to help interested homebuyers in the journey toward homeownership.  Assisting first-time homebuyers through the process is particularly important, as they have the potential to become long-term clients. Those homebuyers will most likely sell and purchase a larger house as their income and family grows, allowing for another generation of first-timers to buy. 

In addition to assisting in the purchase decision, REALTORS® are also needed to direct buyers to local lenders that offer MSHDA products. REALTORS® are also able to suggest local homeownership counseling to buyers to better prepare them for the purchase.  A list of these counselors can be found on MSDHA’s website whose address can be found at the end of this article.

The Michigan Affordable Housing Community Five Year Action Plan

In order to bring Michigan’s affordable-housing community together, a concise and thorough plan had to be established.  Because of this, MSHDA employees, board members, and several outside partners have been invited to be part of the Action Plan.  Many REALTORS® were invited to sit on work groups that began meeting in late July.

The Action Plan process is inclusive and builds on the concept of “one community.”  One primary objective in the development and implementation of the Action Plan is to raise the visibility of the need for and the benefit of affordable housing.  We believe that through this process we can create a plan for affordable housing for the state of Michigan that will be embraced as a roadmap by all members of our affordable housing community, specifically, you, our Michigan REALTORS®. 

The Action Plan will take a year to finish and will be presented at the 2006 Michigan Conference on Affordable Housing.  Keep an eye open for developments, and contact MSHDA with any questions or thoughts.

Single Family Mortgage Program

The housing climate has changed dramatically in recent years, and Michigan’s legislators have responded to the increased housing prices.  In December of 2004, legislation was passed to increase income limits and price limits on MSDHA loans to expand affordable-housing options for low to moderate-income Michigan residents. The Single family loan products are especially targeted to those who are part of the state’s workforce. 

Eligible household income can be no higher than $69,800 in most urban centers. In other areas of the state, a maximum household income of $60,700 may be applicable.  Purchase price limits also apply a housing price limit of $209,400 in most urban centers and limits of $182,100 in other areas of the state. 

The limits vary by city and county.  For a complete list of limits, visit the MSHDA website.

Through the single- family mortgage program, MSHDA will be able to form and sustain long-term partnerships with lenders, REALTORS®, and organizations throughout the state. Since the income limits increased last December, MSHDA has seen a steady growth of participants in the Single Family mortgage programs.  Comparisons have been made between Single Family production during the period of January 1 through June 20, 2004; and January 1 through June 20, 2005. 

Production has experienced a 58 percent increase since the new legislation, and total loans have increased to 392, as compared to 248 in 2004. The average loan amount has increased from $76,066 to $87,001, average sales price increased from $77,901 to $91,209, and the average household income increased from $31,600 to $35,535. 

The Single Family program offers a 30-year mortgage for homebuyers with respectable credit histories. Limits on income and the price of the house are based on where the buyer lives in Michigan.  New and existing houses, condominiums, and certain new mobile homes on foundations can be purchased with a MSHDA mortgage. 

MSHDA also offers zero-interest, down-payment loans to help with costs of purchasing a home, such as closing costs.  The loan does not have monthly payments and is repaid only when the house is refinanced, sold, or at the end of the loan term.  The most that a homebuyer can borrow for down-payment assistance is $5,000, and that is based on household income and family size.  To qualify for a MSHDA mortgage and down-payment assistance, buyers must complete a free class that teaches about the mortgage program and home buying in general provided by MSHDA certified counselors.

The Michigan State Housing Development Authority is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low and moderate-income Michigan residents. 

The Authority’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues.  MSHDA has provided $2.48 billion in Single Family mortgages and has financed 56,000 homes since its inception in 1966.

Contact Information

MSHDA spends a significant amount of time preparing participating lenders to effectively offer MSHDA loan products.  The list of statewide lenders can be found on the MSHDA website, which also provides detailed information about the Single Family program. REALTORS® can call (517) 373-8370 or visit www.michigan.gov/mshda for more information.

Michael DeVos
Executive Director of the Michigan State Housing Development Authority

DeVos was named Executive Director of MSHDA in January by Governor Grahnholm and MSHDA’s board of directors.  He comes from the Maine State Housing Authority, where he served as director of development from 1995 to 2005. 

DeVos began his career in Massachusetts in1982 as a real estate salesperson and became a developer in 1984.  He was a principal in 11 projects totaling over $4 million, including renovations, subdivisions, condominium conversions, and income properties.  He joined Resources for Community Development in California in 1991 as executive director, where he monitored projects totaling more than $30 million. 

DeVos graduated Magna cum Laude in 1981 from Harvard College and took his MBA in 1991 from the Haas School of Business at the University of California, Berkeley. 

He will be unveiling the Michigan Affordable Housing Community Five Year Action Plan at the 2006 Michigan Conference on Affordable Housing.