A 50-unit tribal housing development has taken a big step forward in Petoskey, Michigan.
Hunt Capital Partners has announced it has closed on low-income housing tax credit (LIHTC) financing for the community in collaboration with Odawa Economic Development Management (OEDMI), an arm of the Little Traverse Bay Bands of Odawa Indians, and Community Housing Network (CHN).
Victories Square will provide a mix of studio, one-, and two-bedroom homes for 50 households earning up to 30%, 40%, and 80% of the area median income. Eight apartment homes will be set aside for tribal members and supported by a 45-year project-based rental assistance contract from the tribe. The development represents Hunt Capital Partners’ 14th investment in an affordable housing project that involves tribal development partners.
Situated off U.S. Route 131, the $15.4 million community will bring new affordable housing for families in Petoskey, which is home to approximately 5,865 people. The resort community is located along the shores of Little Traverse Bay and features a downtown area that serves as a popular hub for recreational activities, attracting approximately 750,000 visitors annually.
“Tribal communities are a historically underserved population, and building affordable housing on tribal land helps to not only create opportunities for economic development but also enriches the lives for many within the tribe through increased access to high-quality housing,” said Hunt Capital Partners executive managing director Dana Mayo.
Victories Square will be financed, in part, with $13 million in 9% federal LIHTCs awarded by the Michigan State Housing Development Authority (MSHDA) and syndicated by Hunt Capital Partners through one of its multi-investor funds. OEDMI provided a $5 million soft loan comprised of funds from the tribe, the Shakopee Mdewakanton Sioux Community, and MSHDA. It also received a $448,000 Affordable Housing Program grant through the Federal Home Loan Bank of Indianapolis.
The homes will be equipped with dishwashers, microwaves, garbage disposals, washer/dryer connections, Energy Star kitchen appliances, LED lighting, walk-in closets, exterior storage, and central air conditioning. Residents will benefit from amenities such as a community room, bike racks, on-site management, and Wi-Fi in common areas.
Victories Square will meet National Green Building Standard silver-certifiable standards and comply with MSHDA green policy certification. Five homes will be accessible, and the remaining will be adaptable.
The development team will be led by CHN as the developer. MI-Oaks Construction, a joint venture between Miller Diversified Construction and Oakwood Construction Co., is the general contractor. Dimension IV Madison Design Group is the architect of record. KMG Prestige will provide property management.
