Grant Awarded - Homestretch announces $800,000 grant award for its Flats on Bridge affordable housing project in Elk Rapids

FOR IMMEDIATE RELEASE

12/16/2024 - Homestretch Nonprofit Housing Corporation, a regional developer of affordable housing based in Traverse City, is pleased to announce the award of a $800,000 grant from the Federal Home Loan Bank of Indianapolis (FHLBI) via Homestretch’s project sponsor bank – Mercantile Bank in Traverse City. It is to help fund the Flats on Bridge apartments, a new 24-unit affordable housing development located in downtown Elk Rapids.

FHLBI’s Affordable Housing Program (AHP) provides necessary affordable housing solutions to households throughout Indiana and Michigan. In 2024, it awarded $27.5 million for rental projects. Homestretch and Mercantile Bank were one of 34 organizations awarded from the 100 who applied from the two states.

The Village of Elk Rapids has partnered with Homestretch and Ide Development to launch this exciting opportunity by donating the parcel of land along with approving a 0% PILOT (Payment in Lieu of Taxes) to help make the project economically viable.

Flats on Bridge will offer twelve 960 s.f. two-bedroom and 650 s.f. one-bedroom rental apartments for tenants earning 30-80% of Area Median Income (AMI). Rents will range from approximately $500 to $1,400 per month, depending on the income restriction.

As a $7 million project with multiple funding sources, Homestretch is collaborating with Elk Rapids, Ide Development, and Mercantile Bank to apply for a Low-Income Housing Tax Credit (LIHTC) award from the Michigan State Housing Development Authority (MSHDA) as well as funding from the state’s Environment, Great Lakes and Energy (EGLE) department.