The state has signed off on $4.9 million in financing for a $22 million mixed-use development near Detroit's West Village neighborhood.

The Michigan Strategic Fund board on Wednesday approved a pair of Michigan Community Revitalization Program loans totaling $3.3 million and $1.6 million in brownfield financing for the project being spearheaded by Detroit developer Michael Higgins, who is majority owner of Broderick Tower downtown and is working on a redevelopment of the former Leland Hotel.

As part of the project, 42 new residential units would be built at Jefferson and Van Dyke avenues, along with about 17,000 square feet of commercial space and a new parking deck, according to an MSF board briefing memo. Crain's has previously reported that the deck would include 136 spaces.

An existing parking structure would be demolished and replaced with a three-story deck with 65,000 square feet of parking space, 36 residential units on top across four stories, plus 3,100 square feet of commercial space. Four buildings at 7903 E. Jefferson, 7919 E. Jefferson, 576 Van Dyke and 578 Van Dyke would be redeveloped into commercial space that would include a cafe, plus another six residential units, according to the board memo.

Higgins said half of the 42 units will be for residents making 50 to 80 percent of the area median income, while the other half will be for those making between 80 and 120 percent. AMI for a two-person household is $61,100 and $76,300 for a four-person household. Fifty percent of AMI for a two-person household is $30,550 and $38,150 for a four-person household, while 80 percent of AMI is $48,880 and $61,040, respectively. AMI at 120 percent is $73,320 for a two-person household and $91,560 for a four-person household.

The MCRP loan is divided into two tranches, one for $1.8 million and another for $1.5 million.

Other financing includes $12 million in Capital Impact Partners senior-position debt, followed by the MCRP loans in priority repayment position, the memo says. The city's Affordable Housing Loan Fund is contributing $2.5 million and $2.8 million in developer equity is included in the capital stack, as is $1.4 million in deferred developer fees, the memo says.

Construction is expected to begin in the next three months and be completed 18 months after that, Higgins said.

"This was the last piece of our financing to be approved," Higgins said.

Troy-based O'Brien Construction Co. Inc. is the general contractor and Berardi Partners is the architect. The company has offices in Detroit, Cleveland and Columbus.

Crain's first reported on the project in September.