A series of bipartisan bills signed by Michigan Gov. Gretchen Whitmer on Tuesday aim to increase investments in affordable housing, cut red tape for new builds, protect Michiganders from predatory housing practices and more.
One package of housing bills, which Whitmer signed into law alongside a school aid funding bill and her eighth and final budget as governor, will establish a new state low-income housing tax credit that operates in tandem with the federal credit, allocating up to $42 million for the state to invest in approximately 2,500 new units each year.
State Rep. Joe Aragona (R-Clinton Township), who sponsored one of the House bills in the package, says the Michigan Housing Opportunity Tax Credit gives families more opportunities to secure housing statewide.
“I’m proud to have worked with Gov. Whitmer to expand a Reagan-era tool that uses private investment, rather than government spending, to address Michigan’s housing shortage,” Aragona said in a news release. “This legislation provides market-based incentives to build thousands of new affordable houses across our state.”
Over the past five years, average home prices in the state have climbed by more than $100,000 while rents have surged, according to the Mackinac Center for Public Policy.
Chris Potterpin, chair of the Michigan Housing Council, says Michigan’s housing crisis has left more than 200,000 low-income households struggling to find a place to call home. He called the legislation a “crucial turning point” that will help bridge financing gaps and lower costs so Michiganders aren’t priced out of the state.
Another pair of House bills signed on Tuesday will update the state’s building codes to allow for construction of residential buildings up to four-stories with a single staircase — an increase from the previous three-story restriction.
The bills’ sponsors, state Reps. Parker Fairbairn (R-Harbor Springs) and Stephen Wooden (D-Grand Rapids), say the legislation gives smaller apartment building projects more flexibility, while still ensuring safety.
“By making this change, we are empowering local units of government with the option to adopt new, safe and cost-effective standards for the construction of certain multi-family dwellings, on smaller parcels and infill or “gap” lots, to increase housing capacity at a lower price per unit,” said Fairbairn. “Though not a one-size-fits-all silver bullet, this legislation represents one more tool locals can adopt to encourage the construction of more attainable, quality housing.”
Lastly, Whitmer signed H.B. 6074, which prohibits large institutional investors from purchasing more than 100 single-family homes in Michigan — mirroring recently enacted federal legislation, but with a lower cap.
For more information about the housing legislation passed this week, visit Michigan.gov.