Planning commission recommends new Attainable Housing Facilities Act zone to City Council

The Kingsford Planning Commission on June 22 unanimously recommended that the City Council consider creating a "Kingsford Residential Block Re-Development Attainable Housing Facilities Act Program Zone," a tax-incentive program designed to support renovation of small rental properties.

City Assessor Kyle Mulka described the program to the commission, saying, "The Program provides tax incentive to owners of rental housing properties with not more than four units to enable renovation and entitles the facility to receive a tax exemption from 1-12 years." Mulka explained he organized the proposed zone by zoning district because the program targets apartment units and would not fit the city's single-family zones.

Under the proposal, the city would use the state average tax rate, halve that rate for participating properties (the applicant would pay the reduced amount), and grant applicants a tax exemption ranging from one to 12 years. Applications would be submitted to staff — through Assessor Kyle Mulka — and each award would be considered case by case by the City Council. Secretary Michael Stelmaszek warned that the program "could affect city revenues" and urged the commission to consider guidelines or thresholds should the Council move forward. He also noted the program is scheduled to sunset at the end of 2027, though there is local interest in extending it to 2030.

During discussion, commissioners asked for clarity on where the zone would apply and what protections or limits the city might place on long-term revenue impacts; the meeting minutes record no detailed revenue projection. After discussion, Roger Marinich moved and James Cain seconded a recommendation that the Council consider establishing the proposed zone; the motion carried unanimously. The commission's recommendation will be forwarded to City Council for review and any eventual decision.