Muskegon Enhances Infrastructure and Affordable Housing

News Summary

Muskegon, Michigan is taking important steps to revitalize its infrastructure and create affordable housing. Recent developments include a 144-apartment housing project and industrial expansion efforts aimed at promoting economic growth. Local officials have approved critical rehabilitation certifications and tax incentives to support these initiatives, addressing the urgent need for affordable housing in a community where a significant portion of renters face financial strain. Additionally, nonprofit efforts and new housing projects are in the works to benefit low-income residents.

Muskegon, Michigan – The city of Muskegon is taking significant steps to revitalize its infrastructure and create affordable housing, as local officials approved new developments aimed at transforming blighted areas. This includes a new housing project and an industrial expansion, which are expected to contribute to economic growth and community development.

The Muskegon City Commission unanimously approved a commercial rehabilitation certificate for a 144-apartment housing development on August 12. This project is spearheaded by Krimson Development/Muskegon-Central Park and represents a total investment of $21.5 million. Located at the former Muskegon General Hospital site at 1700 Oak Ave., the housing project will consist of six buildings featuring one- to three-bedroom apartments designed specifically for affordable workforce housing.

The project targets residents with household incomes between 69% and 77% of the county median area income, which translates to approximately $40,000 annually for a two-person household. To further ensure affordability, rent for these apartments will remain within the area median income range for the next 20 years.

Earlier this year, the city approved a tax incentive that allows tax increment financing (TIF), which will help reimburse the developer for costs associated with environmental cleanup and site redevelopment.

In a parallel effort to boost local industry, the Muskegon City Commission also authorized an industrial facilities exemption for Molding Media of America. This exemption pertains to the rehabilitation work being done at the former Great Lakes Die Cast facility, located at 701 W. Laketon Ave.. The $185,000 expansion project is projected to create over 50 high-paying jobs within the next two years, at a site that has been vacant since 2021.

In addition to housing and industrial growth, the Muskegon County Commission has initiated a search for developers to enhance Dune Harbor Park in Norton Shores. This initiative aims to make the park more accessible to visitors by addressing erosion issues and providing new accessibility features, including ADA-compliant parking and walkways. The projected cost for these improvements is $55,000, supported by a $250,000 grant from the Consumers Energy Foundation earmarked for 2024.

Addressing the issue of affordable housing further, the Grand Rapids-based nonprofit ICCF Community Homes has expanded its operations into Muskegon. They have taken over 25 rental homes previously held by Community enCompass. This transition is a response to operational challenges exacerbated by the COVID-19 pandemic. The nonprofit has received a $75,000 grant to ensure these homes remain affordable for low-income households. Plans are underway to create a strategic future plan for these homes, which may include keeping them as rentals or transforming them into a community land trust model.

Recent data indicates that over half of the renters in Muskegon are cost-burdened, with nearly 60% earning less than $30,000 annually. This highlights the urgent need for affordable housing solutions in the area.

Furthermore, Pivotal Development has commenced construction on the “Lofts of Muskegon,” a subsidized housing project that carries a budget of over $17 million. Situated at 122 W. Muskegon Ave., this project will include 32 two-bedroom apartments and 14 three-bedroom units designed for households earning between 30% and 80% of the median income. Pivotal Development also plans to allocate 10% of these units for project-based vouchers and 15% for Little River tribal members. Completion of this project is expected by summer 2026.

As Muskegon progresses toward these important developments, the community stands to benefit from improved housing options, job creation, and enhanced public spaces, which all contribute to the area’s economic revitalization.

Deeper Dive: News & Info About This Topic

• MLive: Rehabbing Old Foundry Site
• Wikipedia: Affordable housing
• MLive: Muskegon Area Housing Developments
• Google Search: Muskegon housing developments
• Crain’s Grand Rapids: Nonprofit Developer Picks Up Homes
• Google Scholar: Affordable housing Muskegon
• WOOD TV: State Awards $850k to Muskegon Project
• Encyclopedia Britannica: Urban development
• MLive: Former McDonald’s Site Development
• Google News: Muskegon affordable housing projects