Mercantile Bank and FHLBank Indianapolis Award $2.2 Million in Affordable Housing Grants to West Michigan Nonprofits.

Expanding housing options and driving investments in local communities.

Mercantile Bank, in partnership with the Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis), is proud to announce a major investment in West Michigan’s future: $2.2 million in Affordable Housing Program (AHP) grants awarded to three nonprofit organizations dedicated to creating affordable homes.

This collaboration will add over 10,000 square feet of housing and create 28 new affordable units, addressing the critical shortage of housing options for individuals and families across the region.

How Affordable Housing Builds Strong Communities

“Affordable housing doesn’t just change individual lives—it strengthens communities,” said Sonali Allen, SVP and Community Development Officer at Mercantile Bank. “When people have a stable home, children thrive in school, health outcomes improve, and neighborhoods become more resilient.”

These nonprofits are playing a key role

The grants will fund projects led by three incredible nonprofit partners:

• Well House – Building an ADA-compliant duplex with sustainable, LEED-certified design to provide long-term affordable rental options for individuals and families experiencing homelessness.
• Habitat for Humanity of Kent County – Constructing new homes for first-time homeowners, helping families achieve stability and generational wealth.
• Mel Trotter Ministries – Developing an innovative tiny home community to serve families and individuals with limited income.

These homes will serve households earning below 80% of the area median income (AMI), with many units reserved for those earning significantly less.

A Shared Commitment

Alongside FHLBank Indianapolis, Mercantile Bank contributed additional funds to reinforce its commitment to housing stability and community development across Michigan.

“Our Affordable Housing Program is designed to empower local organizations like Mercantile to meet the unique needs of their communities,” said MaryBeth Wott, SVP Community Investment and Strategic Planning Officer at FHLBank Indianapolis.