Race Day Live Michigan is taking a new approach to tackling its housing crisis by working with businesses to build affordable homes for workers.
Gov. Gretchen Whitmer announced a $10 million Employer-Assisted Housing Fund on Friday at the Northern Michigan Policy Conference in Traverse City.
The goal is to help companies create housing solutions as the state struggles to keep up with job growth.
“We are creating jobs much faster than we are building homes,” Whitmer said. Between 2014 and 2023, Michigan added one housing unit for every 14 jobs. “If we want people to move here for work, they need places to live.”
The new fund, managed by the Michigan State Housing Development Authority (MSHDA), will provide financial support to employers investing in local housing projects.
This could include land donations, down payment assistance, or real estate development. In return for state matching funds, the housing must remain affordable for at least 10 years if it’s a rental and five years if it’s for sale. MSHDA will release details on income limits and rent eligibility next month.
Funding applications will open on Feb. 24. Employers must contribute in some way, whether through donated land, cash, or a low-interest loan. Applications will be reviewed on a first-come, first-served basis.
Lisa McComb, executive director of the Otsego County Economic Alliance, welcomed the announcement, saying her county needs around 700 additional housing units.
Many businesses are opening in the area, including an Amazon distribution center, Menards, and Lake State Railway Company. However, attracting workers remains a challenge without affordable housing.
“The workforce is there, they commute within 90 miles, but they don’t have anywhere to live,” McComb said. “It’s impacting local businesses.”
Michigan still needs about 141,000 housing units to meet demand. The state has already supported employer-driven housing efforts.
For example, Whirlpool Corp. built an 80-unit apartment complex in Benton Harbor with state assistance in 2023. The complex, called Emma Jean Hull Flats, requires tenants to have lived in Benton Harbor for at least a year, with some units reserved for public service workers like teachers and first responders.
Whitmer highlighted the Whirlpool project as an example of how the new fund could work.
Other businesses have also stepped in, like Short’s Brewing Co., which purchased a hotel for employee housing, and University of Michigan Health-Sparrow, which donated nine homes to affordable housing organizations.
“Housing affects everything,” Whitmer said. “Businesses can’t grow without workers, and communities can’t thrive without stable housing. If we don’t fix this crisis, it will continue to slow down our economy. That’s why we say: ‘Build, baby, build.’”
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Leaders across the state agree. Ed Ness, CEO of Munson Healthcare, said housing is crucial to recruiting healthcare workers in Northern Michigan.
“We welcome Governor Whitmer’s plan and look forward to learning more about how it can help us grow our healthcare workforce,” he said.
Amy Hovey, CEO of MSHDA, said the fund is part of a broader plan to align housing with job growth and economic expansion.
“The Employer-Assisted Housing Fund will allow us to build on our progress and create more opportunities for Michigan residents,” Hovey said.
With applications opening soon, the program aims to encourage more businesses to invest in housing, ensuring Michigan workers have a place to call home.
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