Advocacy News – June 16, 2023
The MI Chamber is supporting a package of bills aimed at increasing affordable local housing – a key barrier to employment – that saw key movement this week. Previously passing the Michigan Senate with bipartisan support, the package of bills (SB 129-132) passed out of the Michigan House Economic Development and Small Business Committee and will soon reach House floor for consideration by the entire body, likely in the coming weeks. The legislation would enable communities to include housing in their Brownfield plans, harnessing tax dollars generated by investment to support housing supply and affordability of for-sale and rental housing.
The MI Chamber along with other key community and business groups, sent a letter to all House members expressing collective support for the legislation and key benefits these bills provide to our state, and community.
This legislation expands Brownfield Tax Increment Financing (TIF) to support workforce housing. Here’s how it works:
- TIF financing is supported by new tax revenue that is only created as a result of the property investment. No existing revenue is given up, and communities can easily calculate the potential costs/benefits.
- Allows for the use of housing development activities to be supported by tax increment financing including construction, rehabilitation, site preparation, acquisition costs for blighted or obsolete rental units, public infrastructure and safety improvements necessary for a qualified project, and filling financial gaps associated with the development of housing prices for qualified households.
- Will increase much needed workforce housing supply and can be used in for-sale and rental projects.
- Is 100% opt-in. Public and private partners will make decisions based on community goals and site-specific needs, project costs and economic viability of potential investments. There will be local control over if, when, how, and for what to use it for.
- The goal is to support market-based forces to increase housing supply where it is needed most — attainable housing for working households. Research shows that there is a significant gap in housing at all price points, and we are struggling to provide options for households earning up to 120% of area median incomes. This effort creates solutions to address this need and will have an impact across the housing spectrum.
For questions, more information or to share your ideas on tackling more affordable housing in Michigan, please contact Leah Robinson at lrobinson@michamber.com.