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MARQUETTE -- Upper Peninsula economic group InvestUP announced Thursday that it is launching a new program to battle the housing crisis in the region.
The new Build U.P. program will have up to $15 million to award to housing projects around the region. The fund was implemented after multiple area economic polls and surveys consistently identified housing as the biggest economic problem facing the area.
The studies helped the state of Michigan award InvestUP with the $15 million, which allows for management of its sustainable fund.
Build U.P. uses two methods of distribution to allow for funding to get into the hands of those who have shovel-ready projects planned.
"This fund creates a win-win-win for the Upper Peninsula," said InvestUP CEO Marty Fittante. "Build U.P. will help developers move housing projects over the finish line faster. An increase in available housing will assist Upper Peninsula employers in attracting and retaining talent, which in turn will help boost regional population levels."
The first of the two methods is the Cash Collateral Program, which provides money to recipients who are partnering with local lending institutions to cover all or a portion of a calculated shortfall, which will be determined by the institution.
The second is the Residential Infrastructure Loan Program, which will provide financial assistance to U.P. cities, villages, townships and counties to help cover the costs of new infrastructure extensions to residential or rehabilitated housing. The extensions include water, sewer and road improvements. Build U.P. will loan local governments money by purchasing their bonds at interest rates that are favorable to the municipalities.
"This fund will provide developers with the financing they need to move many projects forward more quickly. Everyone wins," said Houghton City Manager Eric Waara.
Application requests for the program can be made at manager@buildupmi.com. More information about InvestUP and the Build U.P. program can be found online at www.investupmi.com.
Randy Crouch can be reached at 906-228-2500, extension 542. His email address is rcrouch@miningjournal.net.