State officials outline designation reforms, tax-credit demand and requests for staff and program increases

A Department of Housing and Community Development staff member told the Commerce & Economic Development Committee that the state is moving to simplify downtown and village designations, and that the department is seeking support for two ongoing staff positions and an increase in the annual tax-credit cap to meet rising demand.

The designation reforms enacted by Act 181 and related land-use work will shift the task of mapping centers to regional planning commissions, the staff member said, and the successor Land Use Review Board will recognize those maps. The change is intended to stop the state board from spending months drawing tight boundaries and to free the agency to focus on on-the-ground community development and technical assistance.

Why it matters: the designation program is tied to a suite of benefits aimed at downtown revitalization, including the Downtown & Village Center Tax Credit Program. As mapping responsibilities move to regional planning commissions, the staff member said more places will qualify automatically for designation benefits, which the department expects will increase demand for tax credits.

The department’s staff asked the committee to support two items in the governor’s budget: the conversion or funding of two positions to reduce turnover in the team that administers the designation and tax-credit programs, and additional tax-credit funding. Caitlin Corkins, who identified…