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Tax increment financing sparks debate over affordable housing project

July 10, 2024 | Barry County, Michigan



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This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Tax increment financing sparks debate over affordable housing project
In a recent government meeting, officials discussed significant changes to the Brownfield statute that could impact affordable housing projects in downtown development authority (DDA) districts. The 2023 amendment allows for tax increment financing (TIF) to be utilized for affordable housing, enabling developers to capture tax revenues that would typically be allocated to the DDA, provided there is an agreement among the county, DDA, and local municipalities.

The resolution currently under consideration seeks to approve a Brownfield plan that would facilitate this tax capture for eligible activities, including reimbursement to developers to bridge the gap in affordable housing rents. This change aims to address the pressing need for affordable housing in the area.

However, the meeting also highlighted concerns from local officials regarding the implications of this project on community resources and tax burdens. Some commissioners expressed apprehension about the potential strain on local services due to the influx of new residents, with one commissioner noting that constituents are already struggling with high taxes. Residents have voiced concerns about the scale of the proposed development, suggesting it may be too large for the small-town environment.

Additionally, the discussion touched on the Thornapple Emergency Services millage, which has been historically exempt from DDA tax capture. The township is set to vote on renewing this millage in the upcoming August primary election, and officials are working on a tax-sharing agreement to ensure that any new millage remains exempt from capture by both the DDA and the Brownfield.

As the community grapples with these developments, the balance between fostering growth and maintaining the character of the village remains a central theme in the ongoing discussions.

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