Bills to create a state tax credit to spur the development of more affordable housing in Michigan are on their way to Governor Gretchen Whitmer.
The bills would work in tandem with a federal tax credit to spur construction of affordable housing. A legislative analysis notes that, according to committee testimony, Michigan appears to the only state that does not have this type of housing incentive.
State Senator Jeff Irwin (D-Ann Arbor), who chairs the Senate Housing and Human Services Committee, said this is one small part of addressing a problem that’s been building for years. But, he said, it is a part of the solution with wide support that can be enacted quickly.
“This provides some new policy that will create thousands of new units,” he said. “That’s great. But we also have to make sure we’re investing to help first-time homebuyers, to make sure that people who are experiencing homelessness get out of crisis and get on a path towards permanent housing.”
He said it will also take some time for the incentives to show results.
“These units have to be planned, they have to be built,” he said. “So, it’s going to take a couple years to start to see units come online, but we’ve got to start planning now if we want to build them tomorrow.”
The bills also include bonus incentives for using building materials that are made in Michigan.
Governor Whitmer has endorsed the concept of using tax credits for affordable housing.
The bipartisan bills were adopted last week before the Legislature began its summer break.
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