Samaritas Snags $1.29 million for Froebel Place in Muskegon

West Michigan projects land nearly $8.6M in state affordable housing tax credits
Rachel Watson – July 11, 2025

A half-dozen projects that will add 300 units of low-income housing across West Michigan have secured a combined total of almost $8.6 million from the state’s latest round of Low- Income Housing Tax Credits.

The awards came as the Michigan State Housing Development Authority gave out more than $14 million in LIHTC funding to 10 rental housing projects in six communities, according to a statement from Gov. Gretchen Whitmer’s office on Thursday. The awards went to a mix of new construction and rehabilitation projects.

The six projects in West Michigan would add a combined 300 new affordable apartments at developments in Muskegon, Grand Rapids, South Haven Township and Battle Creek.

“In Michigan, we are making record investments into housing so we can increase supply and lower costs for buyers and renters,” Whitmer said in the statement.

Manistee-based Little River Development LLC, the real estate arm of Little River Holdings, a venture of the Little River Band of Ottawa Indians, is a partner on four of the six West Michigan projects. Little River Holdings CEO Eugene Magnuson said it’s exciting to receive the funding to advance more affordable housing.

“What it really means is that, as we are partnering with these projects throughout Michigan, we’re gaining experience,” he said. “And then once we have that experience, then we can actually be a developer on LIHTC projects on our own. Right now, we’re using all these other entities to help assist us so we learn the process, and then eventually we can branch out and do our own development.”

Low Income Housing Tax Credits are a federal program administered through MSHDA following a competitive application process. Developers who receive LIHTC awards can claim credit against their tax liability annually for up to 10 years.

This LIHTC round will have a total value over the next decade of about $141 million, according to the governor’s office.

The following West Michigan projects received LIHTC awards:

Allen Crossing, Muskegon, $1.27 million: This affordable housing project at 162 E. Apple Ave. is the second phase in a development underway in Muskegon’s Angell neighborhood by Columbus, Ohio-based Spire Development Inc., the Muskegon Heights Housing Commission and Manistee-based Little River Development LLC. The development will offer 42 one- and two-bedroom units for households earning between 30% and 80% of area median income (AMI). With an expected total development cost of more than $11.9 million, the project is being financed through LIHTC and a permanent loan from RiverHills Bank.

Alpine Senior Apartments, Grand Rapids, $1.41 million: Fond du Lac, Wis.-based Volker Development Inc., Little River Development and Lansing-based Equity First Community Development LLC have proposed this new 52-unit affordable housing development at the former Twisters Ice Cream property at 1625 Alpine Ave. NW. The project will offer one- and two-bedroom units for households earning between 30% and 70% of AMI with 10 project-based rental assistance vouchers from the Grand Rapids Housing Commission. With an expected total cost of more than $16 million, the project is being financed through LIHTC and a permanent loan from Merchants Capital.

Froebel Place, Muskegon, $1.29 million: Michigan nonprofit Samaritas, a Grand Rapids- based emerging developer called Garrett Family Community Partners and Little River Development are leading the redevelopment of the long vacant Froebel School at 417 Jackson Ave. in Muskegon. This 46-unit project will have a mix of studio, one-, two- and three-bedroom units for renters earning between 30% and 80% of AMI. Seven units will receive project-based rental assistance vouchers through the Muskegon Housing Commission. The project budget is about $16.1 million, financed with LIHTC and a permanent loan from Mercantile Bank.

Read more at:

https://www.crainsgrandrapids.com/news/real-estate/west-michigan-projects-land-nearly-8-6m-in-state-affordable-housing-tax-credits/#

About Low Income Housing Tax Credit (LIHTC) 
https://www.michigan.gov/mshda/about/press-releases/2025/07/10/governor-whitmer-announces-funding-to-build-and-preserve-484-affordable-rental-homes
https://www.michigan.gov/mshda/developers/lihtc/lihtc/low-income-housing-tax-credit-lihtc

More About Froebel Place
https://www.linkedin.com/posts/city-of-muskegon_big-news-for-the-historic-froebel-school-ugcPost-7350634701654536193-G0t3?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAFiQV8BTBPBjr73hjNmSGq1V6zMruns_Lc