Michigan State Housing Development Authority (MSHDA)
Due Diligence and Advisory Services
Recap assisted the Michigan State Housing Development Authority (MSHDA) in analyzing and redrafting its Qualified Allocation Plan (QAP) for $20 million of annual LIHTC awards, representing approximately $200 million of equity for affordable housing. At the time of engagement, MSHDA faced reluctance from equity sources to invest in Michigan's challenged real estate market, contentious relations with stakeholders, inefficient resource-allocation mechanisms, and a looming deadline to prevent loss of federal funds.
Recap's initial analytical report identified specific areas for improvement and encouraged stakeholders, advocates, and MSHDA staff to agree on how to allocate scarce federal resources to produce affordable housing. The new QAP encouraged permanent supportive housing and preservation of existing affordable housing as primary objectives, while producing affordable housing statewide in all types of communities. It also fulfilled the state's central political objectives and was accepted by the governor . all within four months of engagement.