Governor Gretchen Whitmer today highlighted significant new investments in Michigan's fiscal year 2027 budget aimed at expanding affordable housing options and strengthening efforts to prevent and end homelessness across the state. The bipartisan budget, signed into law last month, provides crucial resources to help Michigan families find stable, affordable places to live.
The FY27 budget allocates $50 million to the Michigan Housing and Community Development Fund, $5 million for permanent supportive housing, and $4 million to support communities in their fight against homelessness. Additionally, it establishes the new Michigan Housing Opportunity Tax Credit, designed to finance thousands of new affordable rental housing units annually. These initiatives come as the state has already reduced its estimated housing shortage from 190,000 units to approximately 97,000 since 2022.
"Every Michigan family deserves an affordable, quality place to live, work, and play," said Governor Whitmer. She added, "I’m proud of the bipartisan work we’ve done to build more affordable homes and close the housing supply gap." Amy Hovey, CEO and Executive Director of the Michigan State Housing Development Authority (MSHDA), emphasized that these investments provide "more ways to help communities build and preserve affordable housing, strengthen neighborhoods and support Michiganders who are struggling."
The new Michigan Housing Opportunity Tax Credit will leverage federal Low-Income Housing Tax Credits and private investment, expected to support about 2,500 affordable rental homes each year, with 30% designated for qualifying rural projects. The $50 million HCDF will further aid in developing and preserving affordable housing and revitalizing communities.
To address homelessness, the $4 million for Michigan’s Continuums of Care (CoCs) will fund eviction prevention, street outreach, rental assistance, and emergency shelter, prioritizing projects not receiving federal FY26-27 CoC funding due to ongoing litigation. An additional $20 million from a Make it in Michigan Competitiveness Fund grant will support regional planning bodies. State Sen. Jeff Irwin (D-Ann Arbor) said, "This critical funding counters federal cuts in order to keep people housed and to support people who need help to find a safe, stable place to live." State Rep. Cynthia Neeley (D-Flint) added, "When someone has a safe, stable place to live, so much else becomes possible."
Governor Whitmer's administration continues its commitment to housing, having made record investments and reduced the housing gap by 44%. The goal is to ensure every Michigander can find a place to call home, building on past successes like helping over 6,000 Michiganders buy homes in 2025.