Michigan Governor Gretchen Whitmer announced fiscal year 2027 budget investments totaling tens of millions of dollars to expand affordable housing and prevent homelessness across the state.
Signed into law last month, the bipartisan budget includes $50 million for the Michigan Housing and Community Development Fund, $5 million for permanent supportive housing, and $4 million for communities working to prevent and end homelessness. The budget also established a new Michigan Housing Opportunity Tax Credit to finance affordable rental housing developments.
The tax credit is expected to support approximately 2,500 affordable rental homes annually by leveraging federal Low-Income Housing Tax Credits and private investment. At least 30 percent of available credits are designated for rural projects based on greatest housing need.
"These investments give us more ways to help communities build and preserve affordable housing, strengthen neighborhoods and support Michiganders who are struggling to find or maintain a safe place to call home," said Amy Hovey, CEO of the Michigan State Housing Development Authority.
Before implementation of Michigan's first Statewide Housing Plan began in 2022, the state faced an estimated 190,000-unit housing shortage. That gap has since fallen to approximately 97,000 units.
The budget allocates $4 million for Michigan's Continuums of Care, regional organizations that coordinate homelessness prevention and response. Eligible uses include eviction prevention, street outreach, rental assistance, supportive services, emergency shelter, and transitional housing. Priority is given to maintaining programs that lack federal funding for fiscal years 2026 and 2027.
The state is also investing $20 million through a Make it in Michigan Competitiveness Fund grant to support regional planning bodies working to prevent and end homelessness, as federal funding for fiscal year 2026-27 remains uncertain due to ongoing litigation.