Governor Signs New Laws to Expand Housing Opportunities
A state legislation package designed to boost attainable housing development across Michigan was formally approved today by Michigan Gov. Gretchen Whitmer, giving housing agencies, developers and communities new tools to expand housing opportunities for residents and families throughout the state.
Gov. Whitmer signed the four housing bills, capping more than two years of effort by partners in the Michigan Housing Coalition including Housing North, that were crafted to address obstacles to workforce and affordable housing development in areas of land-use, taxation and financing.
“It’s really been a total team effort to get these bills over the line and to the Governor’s desk for her signature,” said Yarrow Brown, Executive Director of Housing North. Brown praised the bi-partisan support the package received in both the state House and Senate, along with the grassroots advocacy work of the 60-plus partners in the Michigan Housing Coalition, along with the efforts of Housing Next based in Kent County and the Community and Economic Development Association of Michigan (CEDAM) of Lansing.
The housing bills were the product of extensive input from stakeholders, local officials and others on ways to develop "missing middle” housing opportunities targeting the regional workforce. Housing North’s research shows that more than 15,600 housing units are needed in the 10-county region from 2020 to 2024 to meet existing demand, most for homes priced below $200,000 or rental units costing up to $1,000 per month. Available housing stock also remains stagnant while the number of seasonal housing units and short-term rental conversions continues to grow, further limiting housing options for the regions workforce.
The housing legislation is specifically designed to address various bottlenecks to workforce housing development, including:
• Establishment of Attainable Housing Districts that will offer tax incentives for housing developments that target income-qualified households, including dormant properties previously used as commercial or industrial sites.
• Creating Residential Facility Exemptions offering specific tax exemptions for income-eligible housing projects.
• Expanding PILOT - or Payment in Lieu of Taxes - pacts with local governments for projects dedicated to workforce housing opportunities on a long-term basis.
• Expansion of the state’s Neighborhood Enterprise Zone legislation offering financial incentives for the creation of workforce housing.
Local officials said the legislation will significantly expand the opportunities for communities to partner with housing developers and agencies to put a significant dent in the region’s housing backlog. Josh Mills, Superintendent for the City of Frankfort, called the housing bills “monumental” in addressing the area’s housing shortage.
“The affordable housing bills signed into law by Governor Whitmer will have a significant positive impact in our community,” Mills said. “This critical legislation will allow our communities to better facilitate and support the necessary partnerships between the private sector, non-profit entities, and local units of government to create the necessary attainable housing opportunities that best serve the needs of our communities.”
Mills also anticipates that some of the tools in the legislation will attract more housing developers into attainable housing projects and partnerships.
“We’re hopeful that this new legislation will provide the incentives necessary for the private sector to play a larger role in the creation of attainable workforce housing,” Mills said. “The tax incentives and other enhancements associated with the construction process will help reduce the overall cost of housing, making it more affordable for people to rent and buy.”
Area economic development partners said the housing legislation will have a positive impact on the regional economy by creating more opportunities for workforce housing, as attracting and retaining a strong regional workforce is critical to the area’s economic future.
“Traverse Connect applauds Gov. Whitmer for signing the Housing Michigan Coalition package to incentivize the development of workforce housing in Michigan,” said Warren Call, president and CEO of Traverse Connect that’s part of the Northern Michigan Chamber Alliance which backed the legislation. “We are thankful to Sen. Wayne Schmidt, Rep. John Roth and our friends at Housing North for their partnership and collaboration. We look forward to continued progress on solutions to workforce housing challenges in the new legislative term.”
Brown said work is already underway on measures to help implement the new legislation. Housing North is planning a set of webinars early next year that highlight the Payment in Lieu of Taxes (PILOT) and Neighborhood Enterprise Zones portions of the legislation, and how communities can implement those tools locally. Housing agencies like the Michigan State Housing Development Authority (MSHDA) are reviewing their programs and procedures to utilize the new legislation, and housing advocacy groups across the state are working on sample ordinances and training programs on the legislative changes.
“It’s a huge win to get these bills approved, but now the work really begins,” Brown said.
More information on the housing legislation, sample ordinances and ways to advocate for attainable housing development at the community level is available by visiting Housing North’s website at www.housingnoirth.org
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Founded in 2018, Housing North is a nonprofit organization that works to build awareness, influence policy, and grow capacity and resources for housing solutions in Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, and Wexford counties. More information is available online at www.housingnorth.org.