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MARQUETTE -- Earl Poleski, executive director of the Michigan State Housing Development Authority, sat down with The Mining Journal Tuesday afternoon where he discussed low-income housing tax credits, local projects and MSHDA's mission to help provide permanent housing for all.
Poleski visited Marquette city officials during his annual visit to the Upper Pennsula to touch base, he said, but was in Sault Ste. Marie Monday to meet with other state and local dignitaries to present a check from MSHDA of around $1.3 million. The check consisted of federal low-income housing tax credits for the development of a large 65-unit affordable housing apartment complex in the downtown district.
"It's going to be some of the first housing to be built in downtown Sault Ste. Marie in a long, long time," Poleski said. "The local officials in Sault St. Marie are very happy to have this occur and it's necessary because local officials have to be on board because there's usually zoning involved … and quite often there's a tax agreement, a payment in lieu of taxes, or frankly some compromise of local taxation to make sure that the financing works, and that takes local commitment and a little bit of local risk."
Poleski also discussed the 56-unit Grandview Marquette that was completed last year, calling it an icon that was built like a fortress.
He said $16 million was allocated in low-income credits as well as $2 million in historic preservation credits, which are also administered through the state.
"A critical part of any financing plan is the allocation of low-income tax credits if it's going to be a low-income deal. We have a very specific plan for allocating those credits called our qualified allocation plan," Poleski said. "It begins with an idea and in this case I think it was local folks in Marquette that said, 'We've got to do something with that building.' They speak with developers, folks who know how to do the sort of work, and of course, the developers know contractors, the developers know architects, the developers deal with us. They know kind of how our process works."
After a plan is set, it's then pitched to MSHDA, Poleski said.
"They say, 'Here's what we'd like to do, here's our financing plan, here's how many units it would be. Our guys chew on that for a month or two -- and they score it according to that qualified allocation plan," he said, adding that after rigorous research and discussion, they decide whether to approve the project.
Poleski said MSHDA's mission is "to partner to provide homes and preserve places for the people of Michigan." He said there are about 275 employed with MSHDA who are "all engaged in making permanent housing for folks."
"That's really gratifying to me to see folks get housing that otherwise might not have it," he said.
Homelessness is also important to MSHDA, Poleski added.
"We dedicate $5 million a year of our authority funds to attract some federal grant monies, and then we give grants to local agencies to take care of locally homeless folks," he said. "With respect to veteran homelessness, it's an important thing to us. Kent County has been successful in kind of gathering all of their local agencies together and they have declared victory and decided a veteran is not going to be homeless in Kent County. They're going to make sure every veteran has a place to live."
MSHDA is also helping homeowners statewide by providing more than $1.1 million in HOME Investment Partnerships Program grants.
The HOME program was created by the U.S. Department of Housing and Urban Development and helps build, buy or rehabilitate affordable housing for rent or ownership.
"This work is often done in partnership with local nonprofit groups," a press release on the program states. "The program has flexibility that allows state and local governments to use the funding for grants, direct loans, loan guarantees, rental assistance or other credit enhancements."
MSHDA awarded these HOME funds for homeowner rehabilitation and homebuyer assistance to elevate and improve low- to moderate-income households. HOME funds are reserved for households at or below 80 percent of area median income. In all, 10 Michigan communities will benefit from these grants with awards ranging from $66,000 to $176,000, the release states.
Community Action Alger-Marquette received $80,000 and has plans to complete two homebuyer purchase rehabilitation projects within Marquette County.
Poleski, who lives in the Jackson area, was named MSHDA director in February 2017. He previously served in the Michigan Legislature from 2011 to 2016, holding roles as chair of the Financial Liabilities Reform Policy Committee and the General Government Appropriations Subcommittee.
He has been a certified public accountant since 1981, working as a sole-practitioner and partner with accounting firms providing individual and business accounting, tax and consulting services, while also representing clients to the IRS and state tax agencies.
Poleski has also served in the oil and gas industry, where he managed the controllership, tax and treasury functions of CMS Nomeco Oil & Gas Co. in Jackson, and as vice president, treasurer and chief financial officer of Dart Energy Corporation in Mason.
Jaymie Depew can be reached at 906-228-2500, ext. 206. Her email address is jdepew@miningjournal.net.