Advocacy

In collaboration with our partner Kent Woods from Borealis Strategic, LLC, Housing North has worked to propose legislation to create additional rural workforce housing from some of the region’s vast short-term rental property stock is before state lawmakers. The proposal would amend Michigan’s general property tax act to allow property owners to receive a homestead exemption - eliminating the 18-mill non-homestead property tax levy collected for Michigan school districts - for properties utilized for rural workforce housing. To learn more about this initiative, click here.

The low-income housing tax credit (LIHTC) program is the nation’s biggest funding source for affordable housing. In Michigan, it’s administered by the Michigan State Housing Development Authority (MSHDA). MSHDA awards funding for projects based on a “rulebook” - the qualified allocation plan, or QAP - that’s updated every two years. The QAP was due for an update in 2020 giving Northwest Michigan the opportunity to share our concerns and priorities for the program.

On February 6, 2020 Housing North held a round-table with developers, employers, local government officials and community organizations to provide an overview of the low-income housing tax credit program and QAP update process, identify barriers to using the program in Northwest Michigan, identify potential changes to the program that could benefit Northwest Michigan and provide advocacy recommendations and talking points.

Based on that input, Housing North recommendations for 2020 QAP update process focused on changes that would help address the needs of rural communities in our region:

• Flexibility for walk-ability requirements

• Lower points for certain financing approaches

• Flexibility for transit requirements

• Tier structure for proximity to amenities

As a general policy, Housing North is not opposed to short term rentals (STRs).

STRs can be an important tool for attracting and accommodating visitors. We are, however, opposed to forcing a centralized planning system on this issue and removing the ability for local units of government to make key decisions in regulating STRs. Michigan lawmakers are currently debating two pieces of legislation -- SB 446 in the Senate and HB 4722 in the House. These bills would impose a one-size-fits-all approach to short term rental regulation in Michigan communities.

Essentially, these bills would allow short term rentals to proliferate regardless of the local needs that are unique to a community and those who live and work there.

Housing North is not opposed to STR’s, but we do want to ensure our communities have the tools and resources to first house those who live and work here year-round. We believe there

should be a balance of STR and year round housing. This bill does not help us as housing advocates to create a balance of housing in our communities. Here is a link with more information about this bill.

Community land trusts are nonprofit entities that created and preserve affordable home ownership opportunities by retaining the ownership of land after a home is sold. By retaining the land, the home can be sold below its appraised value.

A legislative package with two bills is to be introduced:

• Bill Draft 02903’21: This bill would create a refundable income tax credit for CLT homeowners. The credit is equal to all taxes owed on the land and up to 25% of the taxes owed on the structures.

• Bill Draft 032461’21: If the owner choses, the credit is remitted directly to the local tax collecting unit in exchange for a reduced property tax bill. The local tax collecting unit defers levying taxes on the property until the state pays the amount. After the state remits the credit, the local tax collecting unit levies an amount to cover the difference.

Housing North is working with partners on these two bills to help with the property tax impacts on Community Land Trust properties. Currently Senator Stephanie Chang is the sponsor and we are hoping for a co-sponsor soon to introduce the bills in the next few months.