Whitmer approves tax break to increase supply of affordable housing

(Detroit Free Press) Gov. Gretchen Whitmer signed a series of bills Wednesday that lawmakers hope will increase the supply of affordable housing in Michigan.

The bills modify the state's brownfield development fund, expanding it to support housing developments. The brownfield program in Michigan provides reimbursements for costs associated with redeveloping contaminated, blighted or historic properties through tax increment financing (TIF) which works by capturing an increase in taxes stemming from the redevelopment. In other words, a development that generates new tax revenue due to an increase in the property tax value sees those dollars returned to the developer.

Proponents of the brownfield fund expansion herald it as a way to tackle one of Michigan's most pressing housing challenges.

"Affordable housing is a national crisis and Michigan is no exception," state Sen. Sam Singh, one of the bill sponsors, said in a statement. "These bills will give our local communities more tools, and incentive, to invest in affordable housing projects, signaling the commitment to addressing this crisis head-on." ..............(more)

https://www.freep.com/story/news/politics/2023/07/18/whitmer-tax-break-affordable-housing-michigan/70420867007/