Apr. 23—TRAVERSE CITY — More housing is coming to a Garfield Township corner already bustling with development, this time the first phase of an affordable apartment complex.

Michigan State Housing Development Authority recently approved a $12 million loan to Traverse City Housing Commission, according to an agency release. That'll build 48 apartments out of the 210 the commission plans for the Flats at Carriage Commons near Bay Area Transportation Authority's new operations center at LaFranier and Hammond roads.

Karl Fulmer, TCHC's executive director, said the loan will also build a clubhouse complete with an exercise room, mailroom, offices and common space. It'll eventually serve the entire complex, for which the loan will pay for the first two 24-apartment buildings.

"The good thing is, we'll finally get to break ground and start building things upward in the next couple of months," he said.

Now that MSDHA has approved the funding package TCHC presented, the next step is what Fulmer said is called the financial closing. Once all the paperwork is complete, the agency will release the funding so construction can begin. He expected that in June.

Construction for the first phase should take 12 to 14 months, Fulmer said. Residents could move in as soon as summer 2025.

Rents will cover a broad range of incomes, with 21 for tenants earning up to 70 percent area median income — $55,370 for a two-person household, according to MSDHA's latest numbers — and eight for tenants earning up to 30 percent area median income — $23,730 for that same two-person household. In between, 19 will be for renters making up to 60 percent area median income, or $47,460 for two people.

Renters in most of the units will pay a set rent based on where they fall within those three income levels, Fulmer said. The project will also receive 16 place-based vouchers, allowing qualifying renters to pay no more than 30 percent of their income.

Fulmer said TCHC will also accept Housing Choice vouchers for the apartments, which travel with the tenant unlike project-based — these stay with the apartment.

Funding for the first phase comes in large part from the $12 million in Limited Obligation Multifamily Housing Revenue Bonds, according to MSDHA.

Fulmer said that's like a loan the housing commission will pay back from rent income.

It's just one part of a complex financial arrangement — Katie Bach, MSDHA's communications director, said in an email there's $23,073,848 lined up for the entire project, which includes nearly $9.4 million in Low Income Housing Tax Credits, $6 million in a Michigan Economic Development Corporation grant, $3.7 million in a tax-exempt loan and $1.92 million in a MSDHA grant.

Limited Obligation Multifamily Housing Revenue Bonds come with a 15-year compliance period, meaning rents must fall within the agreed-upon rates for that period, Fulmer said. After that, TCHC could look for additional tax credits, financing or other money to rehab the property.

That doesn't mean rents would jump up to market-rate at that point, since the property has a deed restriction requiring affordable housing for considerably longer, Fulmer said.

Meanwhile, BATA currently is building its new, $30 million headquarters and garage on adjacent land. The projects, while envisioned to complement each other, fall under separate agencies and draw from different funding sources.

Plans also call for 15 single-family homes built by Habitat for Humanity, a coffee shop, daycare and bus transfer station near the apartments.