Froebel School Among Two Muskegon Projects Awarded Housing Tax Credits
July 14, 2025
MUSKEGON, MI – The long-vacant Froebel School building in Muskegon is one step closer to a new life as affordable family housing, thanks to a competitive Low Income Housing Tax Credit (LIHTC) reservation award granted by the Michigan State Housing Development Authority (MSHDA) on July 2, 2025. The project, titled Froebel Place Samaritas Affordable Living, was awarded $1,285,000 in LIHTC funding for the development of 46 family housing units within the historic structure.
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Redeveloping this site is a testament to what can be achieved through concerted effort,” remarked City of Muskegon Mayor Ken Johnson. “City, county, and state officials worked together to move this project forward in partnership with Samaritas, gaining widespread community interest and support along the way.”
This award represents a major milestone in the city’s multi-year effort to identify a qualified and committed development partner for the adaptive reuse of Froebel School. Since 2019, the City of Muskegon has worked diligently to generate interest in the site, hosting tours for over 10 potential partners and engaging the community in discussions about the future of the building. These efforts culminated in a partnership with Samaritas, a respected nonprofit human services organization with extensive experience in affordable housing development.
“We are thrilled to see this historic neighborhood asset receive the attention it deserves,” said Joel Lautenbach, Samaritas’ lead contact on the project. “Froebel Place will not only preserve the architectural legacy of the school building, but it will bring high-quality, affordable homes to working families in Muskegon.”
The awarded project includes the full rehabilitation and historic preservation of Froebel School, located at 417 Jackson Avenue, into modern apartments for low- to moderate-income residents. All 46 units will be designated as affordable under LIHTC guidelines, ensuring long-term access to safe, stable housing in the Jackson Hill neighborhood. “Restoring this architecturally significant and historic building for housing and to serve as a community hub once more is thrilling,” noted Mayor Johnson.
The LIHTC program, administered in Michigan by MSHDA, is the federal government’s primary tool for encouraging private investment in affordable rental housing. Investors who receive a tax credit reservation can apply those credits against federal income tax liability for 10 years. In turn, developers agree to maintain rent and income restrictions for at least 18 years, creating meaningful long-term housing solutions.
In addition to the Froebel School award, MSHDA also approved a second Muskegon-based LIHTC project during this round of funding. Allen Crossing III, located near 162 E Apple Avenue, received a reservation award of $1,273,492. This 42-unit development will provide much-needed affordable housing for Muskegon’s senior population.
Together, these two projects represent nearly $30 million in investment toward addressing housing affordability and revitalizing key neighborhoods in the City of Muskegon.
“We are proud to see years of teamwork pay off with two transformative investments in our community,” said Jake Eckholm, Director of Development Services for the City of Muskegon. “Affordable housing is foundational to a strong, thriving city—and we’re grateful to partners like Samaritas and Spire Development for their commitment to Muskegon’s future.”
Media Contacts
Jake Eckholm
Director of Development Services
City of Muskegon
Jake.Eckholm@shorelinecity.com
Deborah Santiago-Sweet
Community Engagement Manager
City of Muskegon
Deborah.Sweet@shorelinecity.com
231-225-6797
Joel R. Lautenbach
Executive Director of Affordable Living Development
Samaritas
616-916-0575
jlaut@samaritas.org