Board reviews draft housing TIF policy; Brownfield authority urges 120% AMI baseline for rentals

Kalamazoo County planning and housing staff presented a first draft of a county housing tax-increment financing (housing TIF) policy at the Sept. 2 Committee of the Whole, asking commissioners for direction on affordability thresholds and waiver procedures.

Rachel Grover, director of planning and development, summarized the draft policy’s core elements: a proposed affordability target of 20 percent of rental units at or below 80 percent of area median income (AMI) and 20 percent of for-sale units at or below 120 percent of AMI. For for-sale homes, the draft would require deed restrictions that limit equity gains for a period of years in proportion to the subsidy received, a commonly used mechanism to preserve long-term affordability.

Macy Walters, Brownfield administrator, told the board the county’s Brownfield Redevelopment Authority (KCBRA) had reviewed the draft and urged caution about setting thresholds below state minimums for certain projects. Walters said the new TIF authority under Public Act 90 of 2023 was intended to spur workforce homeownership up to 120% AMI, and the County Brownfield board favored keeping rental affordability at or nearer the state-established 120% threshold because the rental market for households at 80% AMI is smaller and deals may become harder to finance.

Waivers, community-benefit agreements and infill Staff recommended including a waiver process for projects that cannot include affordable units, accompanied by a community-benefit agreement (CBA) or payment into an affordable-housing fund in lieu of on-site units. Grover and Walters said CBAs should be transparent and documented as part of brownfield plans and development agreements so the county can enforce commitments and ensure public benefit.

Commissioners and staff also discussed the tool’s likely effect on infill versus sprawl. Grover and Brownfield staff said housing TIF plans can include public infrastructure reimbursement (streets, sewer, sidewalks) to enable development on sites that otherwise could not be served, but they stressed careful plan design to avoid incentivizing conversion of agricultural or green spaces in the county.

Next steps Staff asked the board for input and suggested forming a short working group of county planning staff and development professionals to refine thresholds, waiver criteria and sample community-benefit language. Commissioners suggested convening local-unit planning officials and developers to calibrate affordability targets and ensure the policy will be used for infill and owner-occupied housing as intended.

Attributions: The draft policy was presented by Rachel Grover, Planning and Development Director, with comments from Macy Walters, Brownfield Administrator, and Deputy Housing Director Willa d Toronto.