City staff outlines new MSHDA housing TIF tool to support downtown and infill housing

Assistant City Manager and Director of Economic and Community Development Mark Cochran gave a detailed presentation to the Monroe City Council on the Michigan Brownfield Act (Act 381) and PA 90 of 2023, a new state provision that allows Brownfield tax capture to reimburse certain housing development costs for households at or below 120% of area median income.

Cochran said the change "unlocked a whole new world" for the city by adding reimbursement for housing development activities to the list of Brownfield-eligible activities. He told council members the program can reimburse acquisition, demolition, asbestos/lead abatement, site preparation, infrastructure (including privately owned driveways and fire-suppression work), relocation costs for tenants during rehab, and a defined share of a project's financing gap when developers must charge below-market rents to meet MSHDA affordability limits.

Why it matters: The tool can reduce upfront costs that discourage developers from converting downtown upper floors or redeveloping obsolete sites. Cochran used downtown buildings and the "academy" site as examples where costs such as elevator installation or fire suppression can make or break a project; he said those safety- or accessibility-related costs are now potentially reimbursable.

Key points from the presentation:…