The Michigan Municipal League Leads Efforts to Enhance Housing Development in Michigan
The Michigan Municipal League is spearheading a plan in Michigan that is inspired by a successful program in Ohio and aligns with a bipartisan housing measure progressing in the U.S. Senate, as reported by the Lansing State Journal.
While not yet included in this year’s Michigan state budget, the proposed program aims to offer financial support for new housing construction or repairs, covering up to 30% of costs with grants of up to $100,000 or $30,000 respectively.
Dan Gilmartin, the Executive Director and CEO of the Michigan Municipal League, emphasizes that the goal of the proposal is to incentivize local governments to update zoning regulations without imposing a statewide mandate.
Communities can qualify for funding by implementing at least half of a set of recommended reforms, such as modifying parking requirements and permitting accessory dwelling units.
Mayor Andy Schor of Lansing, Michigan, highlights that his city has already made progress by reducing parking minimums and transitioning to form-based codes.
The comprehensive package includes several key programs:
- MI Home Readiness: Allocating $5 million annually to encourage zoning modifications.
- MI Home Grant: Providing $95 million in the initial two years, increasing to $145 million in subsequent years, to bridge funding gaps in housing projects.
- MI Home Fund: Offering $50 million in the first two years to establish a revolving loan fund.
- MI Home Employer: Allocating $10 million per year for employer-assisted housing initiatives.
These funds would support housing for individuals earning up to 120% of the area median income, with affordability requirements extending for a minimum of 10 years.
Developers anticipate that these incentives will expedite housing production. Brian Farkas from Allen Edwin Homes shared that his company has committed to boosting output by 30%, with expectations of further acceleration if the proposal is approved.