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Michigan Pass-Through Bond Program: What Borrowers Should Know

August 25, 2025
Image of the Mackinac Bridge representing the Michigan Pass-Through Bond Program.

If you’re a developer or investor looking to finance a multifamily or residential project in Michigan, the Michigan Pass-Through Bond Program through MSHDA may be a valuable option. Here’s what you need to know:

1. How it works:

  • The bonds are primarily the responsibility of the borrower—not the State of Michigan or MSHDA.
  • Financing is secured by the project itself (revenues, property) and a form of credit enhancement approved by MSHDA.
  • In some cases, private placement structures may be used with MSHDA approval.

2. Types of financing:

  • You can use the program for long-term financing (construction plus permanent) or short-term construction financing.
  • All projects must meet MSHDA’s requirements for credit enhancement.

3. Program limits and timing:

  • There is a $400 million total volume cap for the program.
  • Applications are processed on a first-come, first-served basis, so timely and complete submissions are important.
  • The program ends either at the July 2026 or June 2026 MSHDA meetings or when the volume cap is reached.

4. Project requirements:

  • At least 10% of units must be affordable for households at or below 40% of Area Median Income (AMI) or meet other MSHDA mission objectives such as rural development or permanent supportive housing.
  • Projects must follow proper installation, sealing, and maintenance standards if incorporating certain construction materials.

5. Why it matters for borrowers:

  • The program offers flexible financing for large residential projects, including tax-exempt bond opportunities.
  • It can help you secure long-term funding while meeting affordability or community-focused objectives.
  • Being aware of volume caps and application timelines helps you plan your project and avoid delays.

This is a brief overview of the Michigan Pass-Through Bond Program, designed to help developers and investors explore flexible financing options. For complete details, visit Michigan.gov.

Ready to finance your project? Contact EB Mortgage for expert guidance on small or large business lending, including multifamily and residential development projects in Michigan.

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EB Mortgage is a locally owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us or e-mail us today! 

Written by the Digital Marketing Team at Creative Programs & Systems: https://www.cpsmi.com/.

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