Arpa Highlights - Housing

In 2022, the Board made commitments of over $13M towards growing Housing Opportunities for a wide array of Ottawa County residents.

1. FIRST HOPE AT 10TH STREET APARTMENTS | $2 MILLION *

   WHO/WHAT: Dwelling Place, a 501c3 nonprofit developer and property manager based in Grand Rapids, in partnership with Hope Church and First United Methodist Church of Holland

   NEED: New investment in and around downtown Holland has brought many new businesses and dramatically raised property values. However, this success has come with an unintended consequence – many downtown workers find it increasingly difficult to find affordable housing. Recent housing data supports this: according the 2021 Bowen National Research Housing Needs Assessment for Ottawa County, downtown Holland needs at least 373 additional affordable rental housing units by 2025 to keep up with community needs.

   SERVES: Lower-income individuals and families who are employed at downtown Holland businesses; a handful of adults with disabilities who are unable to work full-time; and Holland-area businesses.

   IMPACT: This project will create 46 new affordable rental units in downtown Holland. Thirty-five of the 46 units will serve low-income single adults and/or families. Eleven will be reserved for adults with disabilities who are unable to work full-time. With a state housing tax credit allocation, the ARPA grant, and an approved payment in lieu of tax agreement from the City of Holland, this project is expected to be fully financially sustainable for 30 years.

2. SAMARITAS AFFORDABLE LIVING OF SPRING LAKE | $1.5 MILLION
   WHO/WHAT: Samaritas, an affordable living nonprofit, in partnership with Pinnacle Construction and Chesapeake Community Partners

   NEED: According to the 2021 Bowen National Research Housing Needs Assessment, the northwestern housing submarket (which includes Grand Haven, Spring Lake, and surrounding areas) needs 584 housing units by 2025. Seniors, in particular, face long waiting lists for housing in other area facilities, such as Evergreen Village of Spring Lake and Pinewood Place in Grand Haven. In order to be built, this project needs a tax credit from the state.

   With increased construction material costs because of supply chain issues and interest rate hikes, it is unlikely this project could be built without
   ARPA funds. Both the village and the township of Spring Lake have already approved and recorded a PILOT (payment in lieu of taxes) ordinance for the property.

   SERVES: Low-income families, seniors, those with special needs or other disabilities, and Native Americans in northwestern Ottawa County.

   IMPACT: This project will create 53 new affordable housing units in the Village of Spring Lake for low-income families, couples, seniors, with eight reserved for those with special needs or other disabilities, and eight reserved for members or descendants of the Little River Band of Ottawa Indians. This investment creates a needed housing resource for 45 years.

3. AFFORDABLE HOUSING REVOLVING LOAN FUND | $10 MILLION

   WHO/WHAT: Housing Next, a pilot program of the Greater Ottawa County United Way, which partners with local governments, developers and nonprofits to create affordable housing, in partnership with Ottawa County and a qualified Community Development Finance Institution.

   NEED: Ottawa County grew 12% in
   the past decade, making it the fastest growing Michigan County. This growth has naturally put pressure on housing stock. Additionally, dramatic shifts in the labor market and rapidly expanding work-from- home opportunities are
   compounding this issue. Housing Next estimates the County is in need of more than 15,000 housing units by 2025.
   Nearly 9,500 of those units are needed for households earning at or below the median income in the county. The private sector
   is not currently empowered to construct needed housing units at an affordable price point.

   SERVES: All who potentially seek to live and work in Ottawa County, employers, developers seeking to build affordable housing in the County

   IMPACT: Utilizing ARPA funds, Ottawa County will grant $10 million to IFF, a 501(c3) nonprofit lender and designated Community Development Finance Institution (CDFI). IFF will operate and administer the Revolving Loan Fund. Coupling the initial $10 million with

   $23.3 million in matching funds, IFF will provide low-interest loans to developers, making affordable housing projects more feasible.

   The ARPA funds serve as a 20-year loan at 0% interest. At the end of the 20-year investment period, the Ottawa County Board of Commissions can request all or a potion of the County funds can be returned to the County as outstanding
   loan balances are prepaid to IFF from borrowers. The County may also choose to reinvest all or a portion back into IFF for a second period of investment.

   Housing Next estimates the initial $33.3 million could potentially support more than 1,000 new units in the first round of funding.

   As the principal balance on loans are returned to IFF, additional housing projects will be supported, creating a self- perpetuating fund.

   As momentum builds for the RLF, the County anticipates other community organizations and businesses will likely invest in the fund, expanding its reach.

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   *The First Hope at 10th Street Apartment investment was not ulitmately not completed due to MHISDA not taking on the projects for state funding.