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County holds first reading of draft Housing TIF policy under new 2023 law; board weighs affordability targets and waivers
Summary
Planning and Brownfield staff presented a first draft of a Kalamazoo County housing TIF policy (Public Act 90 of 2023 / Act 381 use) proposing affordability thresholds (rental and for‑sale), deed‑restricted equity terms, and a waiver/CBA pathway. Commissioners asked for developer input, raised infill vs. sprawl concerns, and requested a small ad hoc group to refine metrics before action.
At a first reading Sept. 2, Kalamazoo County Planning & Development Director Rachel Grover and Brownfield Administrator Macy Walters presented a draft Housing Tax Increment Financing (TIF) policy intended to guide county Brownfield Redevelopment Authority (BRA) decisions under Public Act 90 of 2023 (an amendment to Act 381).
Key proposals in the draft: the policy recommends affordability targets — for rental units, the draft set 20% of units at below 80% of area median income (AMI); for‑sale units, it suggested 20% of units be priced at or below 120% AMI and include deed‑restriction provisions that limit equity realized for a defined affordability period. The draft also contemplates waivers for projects that do not include affordable units and proposes community benefits agreements (CBAs) or payments into an affordable housing fund in lieu of on‑site units.
Brownfield Authority input and developer concerns: Macy Walters and the County Brownfield Redevelopment Authority noted state guidance generally targets workforce housing (MSHDA definitions) and that the state minimums start at 120% AMI; the BRA cautioned that setting county limits below state minimums may reduce deal flow for county BRA projects. Walters also warned that rental affordability thresholds at 80% AMI may yield a relatively small eligible renter pool in some market areas and could complicate deal structuring.
Implementation and accountability: Walters explained the Brownfield administrator is required to collect annual reporting metrics (due Aug. 31) and that development agreements can require income verification and ongoing annual reporting; the developer is responsible for documentation and the BRA can withhold TIF reimbursements for noncompliance. Discussion included whether multiunit projects should be encouraged to accept housing vouchers and whether a CBA should be required when affordability requirements are waived.
Infill, sprawl and a countywide approach: Commissioners asked how the tool would affect infill v. sprawl and whether corridor studies and land‑bank initiatives could channel projects to infill areas. Walters noted housing TIFs can reimburse both public and private infrastructure costs and emphasized the need to treat each plan case‑by‑case with a clear demonstration of community benefit.
Next steps: Commissioners recommended forming a small ad hoc team including planning staff and private developers/consultants (e.g., Michigan Growth Advisors) to refine thresholds and metrics quickly because applications may come forward in short order; staff said they will follow up and return the draft for further board consideration.
