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A $51 million financing package has received final federal approval for major renovations at Harbor Towers and Buss Avenue Apartments in Benton Harbor, Michigan. The closing removes a major financing barrier and allows the 173-unit affordable-housing redevelopment to move toward construction, although officials have not announced a firm construction start date.
What the approved project covers
The redevelopment combines two Benton Harbor properties—Harbor Towers and Buss Avenue Apartments—under one financing package. Together, they contain 173 affordable housing units, according to ABC 57’s 2026 reporting. The project is intended to preserve those homes as affordable housing while bringing the buildings and apartments up to current needs.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallThe reported scope is broad rather than a list of isolated repairs. It includes correcting decades of deferred maintenance, improving accessibility and modernizing residents’ homes. Mayor Marcus Muhammad said the structure remains sound but requires a total renovation.
How the $51 million financing is assembled
The $51 million is a layered capital stack rather than a single federal grant. Congressman Bill Huizenga’s release, as reported by ABC 57 and WSJM, identifies approximately $17 million in Low-Income Housing Tax Credit equity and about $4.4 million in direct HUD funding. State, local and private investment make up the rest of the package.
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| Financing element | Reported amount | What is established |
|---|---|---|
| Total redevelopment package | $51 million | Reported by ABC 57 and WSJM in 2026; covers both properties |
| Low-Income Housing Tax Credit equity | $17 million | Federal support identified in Huizenga’s release as reported by ABC 57 |
| Direct HUD funding | About $4.4 million | Federal funding identified in Huizenga’s release as reported by ABC 57 and WSJM |
| Other capital | Not itemized | State, local and private investment are part of the stack, but separate amounts were not published |
Fannie Mae signed the final loan paperwork. With that closing, the federal tax-credit equity, HUD funds and other investments are coordinated into a package that can support construction financing. Huizenga described the effort as a combination of direct federal, private-sector and state investment totaling $51 million.
Why the renovation is needed
Deferred maintenance
Project statements point to years of deferred maintenance at the developments. The reporting does not provide an itemized list of building systems or a line-by-line construction budget, so individual repairs and their costs have not been established publicly.
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Accessibility
Improving accessibility is one of the stated goals. The available reports do not specify which entrances, apartments or shared facilities will be modified, nor do they publish a unit-by-unit accessibility schedule.
Modernized homes
Residents are expected to receive modernized apartments as part of the work. Public reporting describes the objective but does not yet provide a detailed design package, finish schedule or list of appliances and fixtures.
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What residents should expect during construction
Residents are expected to move into temporary facilities while construction proceeds. That means the work will require relocation planning in addition to building construction, but the reports do not state when moves will begin, how long temporary accommodations will last, where residents will stay or how individual households will be scheduled.
- The long-term affordability of the 173 homes is intended to be preserved.
- Temporary accommodations are expected during the construction period.
- A resident-by-resident relocation plan has not been published.
- The reports do not identify a confirmed construction start date.
How the two developments compare
Harbor Towers and Buss Avenue Apartments are being financed as one redevelopment, and the public reports do not provide separate unit counts, budgets or construction schedules for either property. It is therefore not possible to determine whether one site will receive a larger share of the $51 million or which property will be renovated first.
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| Comparison point | What the reporting establishes |
|---|---|
| Condition | Both developments are included in a project addressing deferred maintenance; no property-specific condition assessment was released. |
| Accessibility and modernization | These are stated goals for the redevelopment overall; separate scopes for each property were not published. |
| Relocation | Residents are expected to use temporary facilities during construction; sequencing by property is not stated. |
| Budget and units | The combined total is $51 million and 173 units; separate figures are not available. |
When will construction start?
No firm construction start date has been announced in the available 2026 reports. Final federal approval and signed Fannie Mae loan documents clear the financing path, but they do not establish a public mobilization date. The contractor, detailed design, construction schedule and relocation calendar also remain unannounced.
For residents and neighbors, the next meaningful updates will likely be the publication of a construction schedule and temporary-housing plan. Until those are released, the approved financing should be understood as authorization to move toward construction—not a notice that demolition, relocation or on-site work has already begun.
Why the federal approval matters
Affordable-housing renovations often depend on several funding sources closing together. In this case, federal tax-credit equity and HUD funds are combined with state, local and private capital, with Fannie Mae completing the loan documentation. That structure gives the project the financial backing needed to address the buildings’ condition while retaining their affordable-housing role.
Huizenga said Benton Harbor families deserve the dignity and stability of safe, well-maintained homes. The approved package is designed to deliver that improvement without abandoning the properties’ long-term affordability.
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