GRAND RAPIDS, MI - Non-profit housing developer Inner City Christian Federation (ICCF) has signed a purchase agreement to buy a portfolio of 177 homes in the Grand Rapids and Lansing area from a Chicago hedge fund.

ICCF plans to work with other affordable housing agencies such as LINC Up, Amplify GR, Habitat for Humanity, the Kent County Land Bank, and local churches to expand affordable rental housing and homeownership opportunities for residents with low and moderate incomes.

"West Michigan is thriving in so many ways, but our super-charged housing market is driving up prices and rents at alarming rates," said ICCF CEO Ryan VerWys on Monday, June 26.

"These dramatic increases are creating a housing crisis for those of us living on the margins," VerWys said in a statement. "Market forces are driving housing costs up in some neighborhoods to the point where they are no longer affordable to the people who have lived there for generations,"

Terms of the purchase agreement were not disclosed and VerWys declined to identify the seller.

Others familiar with the transaction said the seller is Residential Dynamics Group (RDG), a Chicago fund that has purchased more than 100 houses in the city of Grand Rapids and also owns houses in Wyoming and Lansing.

Most of the houses are located in older city neighborhoods. A review of property records indicate many of them were purchased by RDG after going through foreclosure during the Great Recession.

ICCF and other housing advocates see the purchase as an opportunity to halt a housing shortage that has cropped up for low-to-middle income residents after real estate prices have soared in recent years as the economy has improved.

VerWys said he expects local foundations and other non-profits to coalesce around the project. "Our board feels really confident about our ability to get to a closing. We're working really hard on this," he said.

"We really feel it's important for us to do something intentional about preserving the affordability of homes," VerWys said.

"That's why there so much excitement surrounding this opportunity. We are happy for a thriving economy and a healthy housing market in our community," VerWys said.

"We're also very grateful for this opportunity to work together as a community to provide affordable housing options for individuals and families whose incomes have not increased with their rising monthly rents."

Third Ward City Commissioner and Kent County Land Bank Director David Allen said the RDG offered the 177 properties to the highest bidder, drawing 12 bids from investors in nine different states.

"It's a pretty broad and diverse group of entities working on this," said Allen. "It's going to take all hands on deck to make it happen."

As the project's lead, 44-year-old ICCF has built and redeveloped more than 500 units of owner-occupied housing in West Michigan and manages 168 affordable rental units.

Deputy City Manager Eric DeLong said the city stands ready to help ICCF and its partners redevelop the properties.

"They are a trusted and valuable partner in the community and I think that bodes well for the future of these houses."