GRAND RAPIDS, Mich. — A new state tax credit, according to Michigan lawmakers, will allow for more affordable housing developments to be built.
On Tuesday, Gov. Gretchen Whitmer signed a series of bills designed to, in her own words, "cut red tape, lower housing costs and expand our housing stock."
"At the end of the day, we want people to build their own careers, raise a family here, put down roots — and it all starts with housing," Whitmer said. "Let's celebrate today and keep working hard tomorrow."
New laws
Michigan Opportunity Tax Credit
- House Bill 5806 and 5807 and Senate Bill 966
- Establishes a state low-income housing tax credit
- A similar tax credit exists at the federal level
- According to the governor's office, the credit will annually provide $42 million to developers to support affordable housing developments across the state, allowing 2,500 new units to be built
"Housing affordability is one of the defining challenges facing Grand Rapids today," said Rep. Kristian Grant (D-Grand Rapids), one of the bill's sponsors. "We must continue investing in housing opportunities with urgency and commitment for every corner of our state, so every family has the opportunity to build a future in the community they call home."
Cutting red tape
- House Bill 5570
- Amends the state building code to allow for residential buildings to be built up to four stories with a single staircase, rather than the previous three stories
- According to the governor's office, this change will affect "smaller apartment building projects" and cut down on construction costs by around 10%
Protecting families and first-time homebuyers
- House Bill 6074
- Prevents large institutional investors from who already own more than 100 single-family homes in Michigan from purchasing any additional single-family homes in the state
- A similar law was recently passed at the federal level
MVillage
A groundbreaking for a Grand Rapids nonprofit's first ground-up, residential housing development will happen on Sunday.
Messiah Baptist Church and its nonprofit, MVillage, are behind Cliff's Corner. The two-family rental duplex is set to be built across the street from the church and is named after one of its former pastors, Rev. Dr. Clifton Rhodes.
"It's been a village type of effort to make this happen," MVillage Director Debra Cross said to FOX 17 on Tuesday. "We look forward to making a change in this community."
MVillage currently has five residential homes that are available and in-use for families and it also plans to built at least 70 housing units — 20 for sale and at least 50 for rent — where its offices are currently located at the site of a former funeral home on Eastern Avenue.
"MVillage has given us an opportunity to not only work as a congregation, but to work as a community, to do bigger and better things in regards to housing and resources for families across Grand Rapids," Cross said.
The groundbreaking for Cliff's Corner is scheduled for Sunday, July 26 at 1:00 p.m. at the corner of Henry Avenue and Logan Street.
"We look forward to hearing those stories over and over again," Cross said. "We've been able to impact folks in such a positive way."
Grand Rapids
