CALUMET - There's a large pool of money available from the state for certain types of housing projects, and the village of Calumet would like to get some of that money.
At the regular meeting of the village council, Ray Gerhart, village Michigan State Housing Authority administrator, said the agency has $100 million available for the next round of project funding, but the situation is different than previous funding programs.
Until this round of funding, Gerhart said MSHDA officials were funding rental unit rehabilitation projects for a maximum of $15,000 per unit. Now, the agency will fund only property conversion projects in a downtown core for a maximum of $35,000 per unit. The projects would require a 25 percent contribution from the property owners.
Rehabilitation is for existing rental units, Gerhart said, and conversion is turning property with other uses into nicer rental property.
"What they expect from that is high-quality units," he said.
For most rental rehabilitation projects, Gerhart said such things as new paneling, painting and maybe new carpets were installed, but with the conversion projects everything could be new, including flooring, appliances, plumbing and wiring.
Gerhart said the village would be eligible for $350,000, which could fund a maximum of 10 units, but MSHDA officials suggested starting smaller.
"MSHDA said, 'How about we do five units (now) and come back in September for five units,'" he said.
Gerhart said he's talked to three property owners who said they would be interested in seeking funding, and he asked council members to try to find two more.
"We should try to be as aggressive as possible," he said.
The reason MSHDA made the change in policy, Gerhart said, is to change its image about what kinds of projects it funds and to encourage people to live in the state's downtowns. If more people live downtown, more businesses to provide for their needs will also move there.
Calumet is a good candidate for conversion projects, Gerhart said.
"It's amazing how many units are available for that," he said.
Council members voted unanimously to sign an agreement with MSHDA to take part in the conversion program.
Kurt Hauglie can be reached at khauglie@ mininggazette.com.
