Articles

Simon Schuster, mlive.com

January 23rd 2024

 

Gov. Gretchen Whitmer plans to announce the state will set aside nearly $1.4 billion in funding to build or rehabilitate housing throughout the state.

The announcement will be part of the governor’s State of the State address Wednesday, according to Whitmer’s office. They said the funding would be enough to make nearly 10,000 housing units available, using a mix of federal funding and money set aside through prior legislation. “Building more of every kind of housing — single family homes, apartments and mixed-use buildings — will expand supply and lower costs,” a statement from the governor’s office said. “Getting this done will also support thousands of good-paying jobs in the skilled trades — from pipefitters and carpenters to bricklayers and roofers.”

Michigan has long been grappling with a housing shortage, particularly affordable housing, which is seen as a key barrier to the state’s efforts to grow its population. The state released a statewide housing plan in 2022 which set a goal of making 75,000 additional units available over the next five years. This month the Michigan State Housing Development Authority estimated the state is short about 190,000 units, underscoring the scale of the problem. “Safe, affordable housing is key to creating vibrant communities where residents, businesses, and opportunities thrive,” Sen. Mary Cavanagh, D-Redford, said in a statement. “The need for attainable housing is felt across this state and impacts every resident, current and future.”

State Rep. Kristian Grant, D-Grand Rapids, chair of the House Economic Development and Small Business subcommittee on Housing, said in a statement that “for many Michiganders, access to quality, affordable housing is an immediate concern — and we need immediate solutions.”

Grant cited legislation signed into law last year that incentivizes developing vacant properties as evidence that it’s a priority for Democrats, who currently control state government.

In northern Michigan the issue has been particularly acute, where a lack of housing has led some Michigan employers to buy real estate to house their employees so they can remain staffed. Nikki Devitt, who chairs the Northern Michigan Chamber Alliance, supports the plan.

”This is not just an investment in bricks and mortar, but in the very heart of our communities,” Devitt said in a statment. “By fostering inclusive, vibrant neighborhoods and promoting homeownership, we are igniting a powerful engine of economic growth and social equity.”

Whitmer is scheduled to give her sixth state of the state address as governor Wednesday, Jan. 24 at 7 p.m.