LANSING — A new proposal would provide $800 million for housing support in Michigan, potentially creating or rehabilitating more than 10,000 units over five years.
The MI Home Program, supported by the Michigan Municipal League, would provide $160 million a year if funded by the state.
Most of the grants would only be available to communities that update their zoning policies to loosen some restrictions in areas related to home-building.
Some of those policies include reducing requirements on the amount of parking spots per unit, allowing duplexes in residential areas and reducing the minimum sizes for houses and properties.
“It gives some incentive for communities to do the right things, as far as their zoning ordinances, to create a environment that is more housing-friendly, and then it allows for funding availability to help fill those gaps,” said Don Gerrie, mayor of Sault Ste. Marie and president of the MML’s board.
In years one and two of the program, $95 million would be provided for housing construction or rehab — up to $100,000 for new constructions and $30,000 for rehabs.
“Condos, single houses, duplexes, triplexes, quad-plexes, large condo developments — we want to make sure we get more of all of that stuff,” said Dan Gilmartin, CEO of the MML. “So in one community, it might make sense to do single-family housing. In another community, it might make sense to do something a lot more.”
That grant would increase to $145 million a year in years three through five of the plan.
There would also be $5 million a year in grants to local governments who update their zoning policies, and $10 million annually to support employer-assisted housing around the state.
Properties that receive grants would have to ensure that their units are rented to individuals within 120% of the area median income-level.
The program would also put up $50 million in years one and two to create a revolving loan program, which would help finish construction on developments that are nearing completion.
“Even building market-rate housing right now is challenging, given the costs, and they just keep going up,” said Yarrow Brown, director of Housing North. “Revolving loan funds, grant programs, incentives, really do help with those housing opportunities.”
Brown says that the proposals could make a difference on housing availability in the region.
“We’re just learning about this, and I think any resources and programs and opportunities to help our our cities in Northwest Michigan is going to be huge,” she said.
The plan does not yet have funding from the state, but it does have support from a bipartisan group of lawmakers who say they’ll be pushing for the spending in this year’s budget.