New state program to back pro-housing policy changes by local governments

The Michigan State Housing Development Authority (MSHDA) announced the new Housing Readiness Incentive Grant Program, with $5 million in funds to support cities, villages, and townships in adopting or eliminating rules and regulations to encourage building more housing and making housing more affordable.

"We are moving quickly to solve problems that our local and regional partners have identified, and this new program will put state funding directly into addressing local barriers to new and affordable housing solutions,” said Amy Hovey, MSHDA executive director. “In our regional listening sessions around the Statewide Housing Plan, we heard repeatedly about the importance of streamlining local rules to help build more housing, add density, rehabilitate existing stock, and across the board address affordability.”

Cities, villages, and townships that apply for the program may receive a maximum grant of $50,000 to cover costs associated with adopting land use policies, master plan updates, zoning text amendments and similar activities that increase housing supply and affordability. The work may be performed by existing and/or contracted employees and/or third-party consultants.

“The Housing Readiness Incentive Program will align state investment directly with the local governments that need help most,” continued Hovey. “These problems didn’t crop up overnight, but we’re going to act decisively as we continue to identify new, innovative solutions to confront the housing crisis.”

Funds will be made available to cities, villages and townships depending on whether they have an Engaged, Essentials or Certified designation from the Michigan Economic Development Corporation’s Redevelopment Ready Communities (RRC) program – an initiative for communities to develop best practices in planning, zoning and economic development with the goal of supporting community driven development.

Municipalities will be placed into one of two categories based on RRC designation status. Of the total $5 million allocated to the program, $3 million will be set aside for applicants that do not have an RRC designation. The remaining $2 million will be available to applicants that have a designation.

The online application portal will open Tuesday, January 16, 2024, and will remain open until funding has been fully committed. Applications will be reviewed by MSHDA and awarded as they are received.

For details and access to the application portal when live, visit the Housing Readiness Incentive Grant Program page on MSHDA’s website at www.michigan.gov/mshda/neighborhoods/housing-readiness-incentive-grant-program.