In a move aimed at tackling the affordability crisis, Michigan's Lt. Governor Garlin Gilchrist II announced, alongside housing officials and the director of a major home builder, that 2,500 new homes will be constructed over the next decade. This initiative is bolstered by the Michigan State Housing Development Authority's Housing Tax Increment Financing (TIF) Program. According to an announcement on the State of Michigan, the TIF Program is intended to facilitate the development of housing that is affordable for families earning up to 120% of the area's median income.
"Every Michigander deserves to find a safe, affordable place to raise their family in a vibrant community," Gilchrist stated on the State of Michigan website. The partnership signals an effort to bridge the gap between the public and private sectors, as it addresses the housing needs that impact neighborhoods across Michigan. Amy Hovey, CEO of Michigan State Housing Development Authority, emphasized the TIF Program's role in confronting the housing shortage, with the promise of hundreds of supported housing units and thousands more in the pipeline.
Allen Edwin Homes, represented by Director of Workforce Housing Brian Farkas, pledged to increase their average annual construction of new homes by 30%, effectively adding 250 homes per year. This hike in housing production comes as a direct result of the TIF Program's influence. Farkas lauded the TIF laws and the state's leadership as "a game-changer" for their ability to enable the construction of new homes in various Michigan communities, as reported by the State of Michigan.
Several of the housing projects currently underway include developments in Grand Traverse County, the City of Hillsdale, and the City of Portage. All these projects feature a percentage of homes designated for workforce housing, demonstrating a commitment to inclusive growth and affordability within Michigan. For example, in Grand Traverse County, a new development is bringing 170 rental units to fruition, 20% of which are reserved for workforce housing, a plan made financially feasible by the state's Housing TIF law, as noted by the State of Michigan.
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