In states across the country, the shortage of affordable housing has become one of the most urgent and unifying challenges of our time. Whether urban or rural, red state or blue, the need for housing that meets people where they are financially, geographically, and socially is clear. And the solutions? They must be just as varied, dynamic, and collaborative as the problem is complex.
In Michigan, the housing shortage has spurred a statewide call to action, prompting leaders across sectors to rethink old systems, remove outdated barriers, and invite new voices to the table. At the Michigan State Housing Development Authority (MSHDA), we’ve embraced the idea that this time, while challenging, is ripe with opportunity to test bold ideas, reframe partnerships, and deploy resources in smarter, more responsive ways.
In March, MSHDA announced more than $4.5 million in Employer-Assisted Housing (EAH) Fund grants, bringing more Michigan employers into the housing conversation, from hospitals to manufacturers to local governments. These funds help employers support their workforce through dollar-for-dollar matches for down payment assistance, home repairs, or rental aid.
While EAH is not a new concept, our rollout in Michigan validates the utility of tools like the EAH Toolkit that NHC championed. We’re seeing employers of all sizes understand that investing in housing isn’t just socially responsible, it’s smart business.
EAH is just one piece of the puzzle. What truly sets Michigan apart right now is our commitment to removing long-standing barriers in the homeownership and development space and doing it in ways that are both innovative and collaborative.
MSHDA Rate Relief Mortgage
High interest rates remain one of the most persistent barriers to homeownership, particularly for first-time buyers. To directly address this challenge, we launched the MSHDA Rate Relief Mortgage program, an innovative partnership with the Federal Home Loan Bank of Indianapolis (FHLBank) and it’s already paying dividends for Michigan homebuyers.
Through this first-of-its-kind collaboration, FHLBank purchased a $50 million bond issued by MSHDA. The proceeds have been used to fund hundreds of single-family mortgage loans at below-market interest rates, available exclusively to buyers financing their home through a MSHDA-approved lender that is also a FHLBank member. The program is targeted to households earning 80% or less of Area Median Income, expanding access to affordable homeownership.
Unlike temporary incentives or post-closing rebates, the Rate Relief Mortgage offers a full 1% interest rate reduction up front, lowering monthly payments and removing a major financial hurdle before it prevents buyers from entering the market. It’s a forward-thinking solution designed not only to help more people qualify for a mortgage but to also ensure long-term housing stability.
What sets this program apart is not just the structure, but the partnership itself. This marks the first time MSHDA has collaborated with FHLBank in this way. Results have been swift and significant. The initial round of funding was fully committed within months, and the program is now working through a waitlist, evidence of both the demand for this kind of support and the program’s success in meeting it.
MI Neighborhood
We’re applying that same logic to development through MI Neighborhood, a new umbrella initiative that brings multiple MSHDA programs together under a single, streamlined entry point. Designed to make it easier for smaller and emerging developers to access funding, MI Neighborhood removes barriers from the process, allowing more partners to help build and rehabilitate housing across Michigan.
Where once there were silos and duplicative requirements, MI Neighborhood offers a unified approach that respects the time, capacity, and resource limitations of smaller developers, especially those working in underinvested neighborhoods.
A Bipartisan, Multi-Sector Opportunity
It’s easy to frame housing as a partisan issue, but that’s a mistake. Housing is something we all need. It’s essential for economic resilience, family stability, and community health. When the people who make our towns run — teachers, nurses, food service workers, and others — can’t afford to live where they work, the consequences hurt everyone.
That’s why MSHDA’s approach is focused on leveraging partnerships across federal, state and local governments, public and private sectors, philanthropic organizations and others not traditionally in the housing ecosystem. In this moment of challenge, we see immense possibility to reimagine how we do business, and with whom.
Charting the Path Forward
Michigan’s Statewide Housing Plan, one of only a handful of its kind in the nation, is our north star in this work. The plan has helped unify housing stakeholders around common goals and priorities, creating the scaffolding for efforts like MI Neighborhood, Rate Relief, EAH and other housing innovations to take root.
But even the best-designed plan needs fuel: more resources, fewer barriers, and a continued commitment to asking the right questions: What more can we do? Who else should be at the table? How can we fund it, sustainably and equitably?
In Michigan, asking those questions has led us to the best answers. By embracing innovation and forging new, cross-sector partnerships, we’ve uncovered solutions that make housing more accessible for developers, for buyers, for our workforce, and for the communities we serve. These aren’t just pilot ideas; they’re programs already changing lives.
From our collaboration with the FHLBank on the Rate Relief Mortgage, to the streamlining power of MI Neighborhood, to bringing employers into the fold through our Employer-Assisted Housing Fund, we’re seeing that when you expand the circle of contributors, you expand perspectives and possibilities. And deliver results.
This approach is a model for how states can move beyond reacting to the housing crisis and begin shaping a future where access, affordability, and equity are at the center of how we build.
The housing shortage is real. But so is our collective capacity to solve it, together.