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Rules Committee hears bill to establish state low‑income housing tax credit to spur construction
Summary
Supporters told the committee HB 5805 would create a Michigan Low‑Income Housing Tax Credit modeled on the federal program to leverage federal and private capital and produce thousands of new affordable units annually; MISTA and housing developers said the state is roughly 100,000 units short.
Representative Aragona described House Bill 5805 as part of a package to establish a state low‑income housing tax credit to augment federal resources and incentivize affordable rental development. Jennifer Bowman of MISTA and Chris Potterpin of the Michigan Housing Council said Michigan remains roughly 100,000 units short of demand and that a state credit would make Michigan more competitive with neighboring states, leverage federal Low‑Income Housing Tax Credit allocations, and could spur the construction of several thousand units annually.
Witnesses said the proposed program would be pay‑for‑performance: developers and investors provide capital up front, and the state provides tax credits after projects meet occupancy and affordability requirements. Potterpin estimated the program could deliver more than $6 in private or federal capital for every state dollar and forecast the ability to build over 3,000 units a year under current proposal assumptions.
Committee members asked whether new rules would be needed; MISTA said a state Qualified Allocation Plan (QAP) would be developed, mirroring the federal process. The committee read two cards from organizations noting positions and then proceeded to other agenda items. No final committee vote on HB 5805 was recorded at this meeting.
