City approves several Neighborhood Enterprise Zone certificates as commissioners debate who benefits

The Muskegon City Commission voted April 22 to approve multiple Neighborhood Enterprise Zone (NEZ) certificates intended to lower property taxes on new construction and major rehabs, a policy city staff says helps make new housing affordable while commissioners pressed for clearer protections for existing residents.

Development analyst Jocelyn Hines told the commission the actions approved Wednesday cover five infill homes — 346 Wood Street, 320 Wood Street, 209 Merrill Avenue, 213 Merrill Avenue and 436 Charles Street — and two additional certificates later in the meeting: 328 Terrace Pointe Circle and 312 Jackson Avenue. Hines explained how the NEZ millage rate differs from the regular tax rate: “NEZs…have a reduced millage rate. So just to put numbers in it, a owner occupied home, NEZ millage rate is 17.52 mills.”

Why it matters: NEZ certificates reduce property taxes for a set period (staff said certificates in these hearings were for 12–15 years), lowering monthly housing costs for buyers of newly constructed or substantially rehabilitated homes. City staff and developers said NEZs are part of a broader program that combines private market-rate building with city-subsidized infill to sustain an affordable housing pipeline;…