Whitmer calls for Michigan housing reform to cut red tape

"There's still a lot of red tape that gets in the way of shovels hitting dirt, Whitmer said in her State of the State address. Let's make it easier to build in-law suites and multifamily homes. With her initiative and the proposed legislation, Michigan joins the national shift toward state-led reforms to address housing affordability."

"Lawmakers in California, Oregon, Montana, Arizona, Texas, Florida, and Colorado have taken similar steps. They have moved to legalize missing middle housing types in more neighborhoods. They are also relaxing rules on smaller lots, accessory dwelling units and parking minimums. Those changes aim to lower development costs and open more sites."

"Whitmer urged lawmakers to create a Michigan affordable housing tax credit that layers on top of the federal Low-Income Housing Tax Credit. Many states, including Michigan's neighbors, already supplement federal subsidies with state programs. Affordable housing groups have proposed a roughly $42 million credit to match federal credits."

Governor Gretchen Whitmer is advancing a housing initiative in her final year in office that combines a new state affordable-housing tax credit with regulatory reforms to address housing affordability in Michigan. The proposal aims to remove barriers to construction, including simplifying rules for in-law suites, multifamily homes, accessory dwelling units, and parking minimums. Michigan joins multiple states including California, Oregon, Montana, Arizona, Texas, Florida, and Colorado in pursuing state-led housing reforms. Whitmer's effort aligns with similar initiatives by Illinois Governor J.B. Pritzker and Pennsylvania Governor Josh Shapiro. The proposed state tax credit would layer on top of the federal Low-Income Housing Tax Credit, with affordable housing groups suggesting approximately $42 million in credits to match federal subsidies.

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