STATE LIHTC RESEARCH

Michigan
QAP scoring guide.

Michigan State Housing Development Authority (MSHDA) · 2026-2027 QAP

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● Verified guideChecked Sep 12, 2026View source QAP ↗

THE POINT TABLE

Competitive scoring

45 categories

Not stated in the QAP or the Scoring Criteria document; MSHDA does not publish a "typical winning score" threshold, and no companion document found in this review reports historical winning scores by round.

Select a category to read its scoring criteria.

A. Urban Opportunity Criteria — 1. Proximity to Transportation

4 pts

Points for being within 1/4 mile (urban) of a public transit stop, dial-a-ride ≥5 days/week, comparable private transportation, or a committed on-site transit stop. Used only if the project is NOT in a USDA RD-defined rural area (mutually exclusive with Section B).

A. Urban Opportunity Criteria — 2. Proximity to Amenities

25 pts

Points awarded per amenity type (grocery/supermarket 5, childcare/senior center 5, pharmacy 3, medical clinic 3, library 2, public school 2, community organization 2, employment center 1, public park 1, job training center 1) based on distance (full points within 1 mile, half within 2 miles, urban).

A. Urban Opportunity Criteria — 3. Community Revitalization Plan Area

1 pts

Local government letter/resolution identifying a Community Revitalization Plan or certifying significant public/private investment near the site, scaled to municipality population.

A. Urban Opportunity Criteria — 4. Household Overburdened Area

3 pts

Points scaled by census-tract housing cost-burden rate: 1 pt (30.0-39.9% of households overburdened), 2 pts (40.0-49.9%), 3 pts (50.0%+).

A. Urban Opportunity Criteria — 5. Communities without Recent Awards

2 pts

Project is in a county that has not received a 9% credit reservation in the last four funding rounds.

A. Urban Opportunity Criteria — 6. Community Supported Initiatives

5 pts

Local-government-aligned, community-supported development plan/RFP; 5 pts with a place-based developer (≥25% ownership, headquartered/working primarily in the local area) or 3 pts without.

A. Urban Opportunity Criteria — 7. Job Growth Opportunities

4 pts

Proximity to a state-designated (e.g., SOAR-funded) economic development project: 4 pts within 15 miles, 2 pts within 25 miles.

B. Rural Opportunity Criteria — 1. Proximity to Transportation

4 pts

Same structure as Section A item 1 but with a 1/2-mile rural distance standard; used only for USDA RD-defined rural projects (mutually exclusive with Section A).

B. Rural Opportunity Criteria — 2. Proximity to Amenities

25 pts

Same amenity list/weights as Section A item 2, but rural distance bands are 2 miles (full points) and 5 miles (half points).

B. Rural Opportunity Criteria — 3. Community Revitalization Plan Area

1 pts

Rural-area equivalent of Section A item 3.

B. Rural Opportunity Criteria — 4. Household Overburdened Area

3 pts

Rural-area equivalent of Section A item 4, with a 1-mile census-tract proximity allowance.

B. Rural Opportunity Criteria — 5. Communities without Recent Awards

2 pts

Rural-area equivalent of Section A item 5; includes Native American Housing town-rotation rule.

B. Rural Opportunity Criteria — 6. Community Supported Initiatives

5 pts

Rural-area equivalent of Section A item 6.

B. Rural Opportunity Criteria — 7. Job Growth Opportunities

4 pts

Rural-area equivalent of Section A item 7.

C. Development Characteristics — 1. Affordable Assisted Living

2 pts

Project proposes an Affordable Assisted Living structure and has been approved in advance by MSHDA's AAL Steering Committee.

C. Development Characteristics — 2. Low-Income Targeting

25 pts

Depth/breadth of income targeting via the Unit Targeting Point Calculation Form, with caps on units at 20%/30% AMI without PBRA and a 50% cap on units counted toward points without PBRA.

C. Development Characteristics — 3. Historic Rehabilitation Projects

1 pts

Certified historic rehabilitation using Federal Historic Tax Credits, Part 1 application submitted to SHPO.

C. Development Characteristics — 4. Affordability Commitment

5 pts

0.34 points per year of extended-use commitment beyond the 30-year (15+15) minimum, capped at 5 points (45-year total commitment); TIF projects ineligible.

C. Development Characteristics — 5. Tenant Ownership

2 pts

Commitment to offer 100% of LIHTC units for tenant purchase at the end of the 15-year compliance period, with a compliant tenant-ownership plan.

C. Development Characteristics — 6. On Site Tenant Services

2 pts

Documented on-site services beyond normal management (youth/senior programming, homeownership prep, financial literacy), each with an MOU and minimum monthly frequency.

C. Development Characteristics — 7. Energy Efficient Building Policy

4 pts

Points transferred from MSHDA's separate Energy Efficient Building Certificate.

C. Development Characteristics — 8. Evidence of Proper Zoning

3 pts

Site is already properly zoned for the intended use.

C. Development Characteristics — 9. Evidence of Site Plan Approval

3 pts

Local governing body has approved the site plan with no further approvals needed beyond staff level.

C. Development Characteristics — 10. Accessible Units

3 pts

Commitment to build/market at least 10% of units as Accessible (Type A), with remainder Visitable (FHA Type C) or code-compliant; documented outreach to disability service providers.

C. Development Characteristics — 11. Accessible Community Space

2 pts

Dedicated, appropriately sized (min. 15 sq ft/unit) accessible community space for tenant use, certified by architect/applicant/contractor.

C. Development Characteristics — 12. Tax Abatement

3 pts

Local tax abatement, TIF, or equivalent incentive in place for at least the 15-year compliance period.

C. Development Characteristics — 13. Public Housing Conversions

5 pts

Project preserves/converts public housing units (e.g., RAD, Section 18); on-site or ≥20% of converted units preserved.

C. Development Characteristics — 14. Project-Based Tenant Subsidies

2 pts

2 pts for new/preserved project-based rental subsidy on ≥greater of 5 units or 15% of units for the 15-year compliance period; 1 pt for a 3rd-party-funded 15-year rental subsidy reserve.

D. Development Team Characteristics — 1. Previous Experience of GP/Member

7 pts

Tiered by number of prior successful LIHTC projects (1-2=3 pts, 3-4=5 pts, 5+=7 pts) or non-LIHTC affordable housing/economic development experience (2 pts each); not cumulative.

D. Development Team Characteristics — 2. Previous Experience of Management Agent

4 pts

Tiered by number of LIHTC properties managed (>12 units, >3 years each): 1-4 projects=1 pt, 5-8=2 pts, 9-11=3 pts, 12+=4 pts.

D. Development Team Characteristics — 3. Rental Development's Temporary Point Reduction

-5 pts

Discretionary negative points for failure to meet prior program/MSHDA requirements; can apply for up to two funding rounds.

D. Development Team Characteristics — 4. Asset Management's Noncompliance

-20 pts

Negative points assessed under MSHDA's Noncompliance Letters Policy when a team member is subject to a noncompliance letter.

D. Development Team Characteristics — 5. Poor Previous Participation of Applicant

-20 pts

Negative points for defaults, foreclosure, failure to close/complete prior awards, HUD 2530 violations, etc.; applies for three years.

D. Development Team Characteristics — 6. Poor Previous Participation of Management Agent

-20 pts

Negative points for management-agent compliance failures (late/incorrect monitoring reports, income miscalculation, HUD 2530 violations); applies for three years.

E. Permanent Supportive Housing Developments — 1. Supportive Service Coordination

6 pts

PSH-only. Caseworker:client staffing ratio: 1:20=2 pts, 1:15=4 pts, 1:12=6 pts (1 client per PSH unit).

E. Permanent Supportive Housing Developments — 2. Service Funding Commitments

6 pts

PSH-only. Firm non-LIHTC/non-operating funding committed per PSH unit for services: $4,000=2 pts, $6,000=4 pts, $8,000=6 pts.

E. Permanent Supportive Housing Developments — 3. Targeted Supportive Housing Populations

12 pts

PSH-only. Option 1: 25%+ of units to Category 1/4 homeless with disabilities = 4 pts. Option 2: 25%+ to most-vulnerable populations = 8 pts, plus 4 more pts if 50%+ of units serve that population (max 12 combined).

E. Permanent Supportive Housing Developments — 4. Developing in a High Need Area

5 pts

PSH-only. Scaled by county's literally homeless (Category 1) count: 500-1249=1, 1250-1999=2, 2000-3500=3, 3500+=4, plus 1 bonus point if homeless population exceeds 5% of county population.

E. Permanent Supportive Housing Developments — 5. Experienced Supportive Housing Development Team

9 pts

PSH-only. 3 pts each (up to 9) if GP/Member, Management Agent, and/or Lead Agency each has experience with 50+ supportive housing units.

E. Permanent Supportive Housing Developments — 6. On Site PSH Services

3 pts

PSH-only. 1 pt each (max 3) for on-site outpatient substance-use rehab, FQHC/hospital/IHS physical-behavioral health services, and Community Mental Health services, each MOU-documented at minimum monthly frequency.

E. Permanent Supportive Housing Developments — 7. Medicaid Experience

2 pts

PSH-only. A service-team member currently bills Medicaid (or contracts a Medicaid billing agency) in a PSH/behavioral health/SUD setting.

E. Permanent Supportive Housing Developments — 8. Medicaid Billing

2 pts

PSH-only. Lead agency commits to billing Medicaid (or contracting a billing agency) for PSH/behavioral health/SUD services.

E. Permanent Supportive Housing Developments — 9. Coordinated Entry System

4 pts

PSH-only. 4 pts if the Continuum of Care's Coordinated Entry process is the sole referral source for all PSH units; 2 pts if sole source only for Category 1/4/chronically homeless-designated units.

E. Permanent Supportive Housing Developments — 10. Recovery Housing Developments

4 pts

PSH-only. Recovery Housing projects pre-approved by the Recovery Housing steering committee (Michigan Association of Treatment Court Professionals).

F. Cost Reasonableness with Credit Efficiency (mandatory for all projects)

5 pts

Credit-per-unit compared to a 5-year rolling average 'safe harbor' (±2.5%) by building type; up to +5 pts if efficiently below the safe harbor, up to -5 pts if above it.

Scoring source

"2026-2027 LIHTC Scoring Criteria" / "Scoring Summary 2026-2027" (Version 01.2026), a companion document to the QAP referenced in QAP Section III.A ("The Scoring Criteria... incorporated herein as though they were a part of the body of this QAP") and Section VIII (Selection Criteria, pp.13-14). URL: https://www.michigan.gov/mshda/-/media/Project/Websites/mshda/developers/lihtc/assets/liqap/mshda_li_qap_2026_2027_score_sum_final_pdf.pdf. Threshold/tiebreaker/category framework: QAP Section VII (Eligibility Requirements, pp.12-13) and Section VIII (Selection Criteria, pp.13-14). PSH-specific scoring detail cross-references Addendum III (Permanent Supportive Housing Category).

WHEN SCORES ARE CLOSE

Tie-breakers

Review the agency’s tie-breaker rules alongside the scoring criteria.

Highest total score under the Permanent Supportive Housing Developments section (Section E), for projects in the Permanent Supportive Housing Category
Lowest actual amount of credit per 9% LIHTC unit
Highest total score under the Opportunity Criteria (Section A or B)
Lowest average targeted area median income level in the project
MSHDA staff discretion, if an additional tiebreaker is necessary

MODEL ASSUMPTIONS

Underwriting parameters

Primary: MSHDA "Minimum Underwriting Standards" (Tab O of the Combined Application for Rental Housing Programs) — https://www.michigan.gov/mshda/-/media/Project/Websites/mshda/developers/lihtc/assets/lica/mshda_li_ca_24_tab_o_current_underwriting_standards.pdf (this is where DCR, vacancy, reserves, trending factors, and opex floors actually live). Framework/legal basis: 2026-2027 QAP Section IX "Underwriting Standards & Application of Basis Boost" (p.14) and Exhibit IV "Underwriting Standards" (pp.34-35, Project Feasibility and Rent Increases), and Section X "Fee Limits" (pp.14-16) for developer fee rules.

OPERATING ASSUMPTIONS

Utility allowance

Preferred method: local_pha (required default for the first year of a new LIHTC development; other methods become available after that, except for HUD/RHS-assisted and MSHDA-financed properties, which are locked into program-specific schedules)

MSHDA PHA Utility Allowance Schedules ("Utility Schedules Regions A–D") and MSHDA Utility Region Map ↗

MSHDA LIHTC Compliance Manual, Compliance Monitoring Policy Bulletin #9 – "Agency Estimate of Utility Allowances" (rev. 6/20, 3/26, 7/26), "Ineligible Properties" section; MSHDA "Utility Allowance Submission Process" Memorandum (10/16/2024). The 2026-2027 QAP itself only references utility allowances in its Compliance/Recordkeeping list (documentation of UA calculation must be retained) and does not prescribe a method there.

YOUR NEXT STEPS

Development guides for Michigan

PHASE 1Site sourcing and screening PHASE 2Site control and due diligence PHASE 3Entitlement pathway election PHASE 4Program election (9% vs. 4% vs. hybrid)PHASE 5Rents, income limits, and the operating pro forma PHASE 6Cost, construction type, and the labor package PHASE 7Capital stack and soft money PHASE 8Application assembly and submission PHASE 9Post-award readiness clock PHASE 10Construction, MSHDA's three-stage feasibility review, and the 8609 clock PHASE 11Compliance, Year 15, and Michigan's 30-year extended-use floor

Use the LIHTC feasibility checklist →