State Representative Cam Cavitt has announced a proposal to extend the affordable housing tax credit program in Northern Michigan. The Residential Housing Facilities Act and Attainable Housing Facilities Act, enacted in 2022, permit communities to establish districts where developers receive tax incentives if they build housing that meets specific affordability requirements.
“These attainable housing districts have been working for Northern Michigan,” said Cavitt, R-Cheboygan. “By drawing these developers in to build affordable and attainable housing, we’re expanding our tax base and creating more opportunities for young people to live closer to where they work. These housing districts are letting young teachers live near their schools, and young hourly employees live close enough to get home in time for dinner.”
Developers can qualify for a tax credit of up to 50% by constructing homes for residents earning less than 120% of the area median income. The current program is scheduled to end in 2027, but Cavitt’s plan would extend it for another ten years.
“Since being signed into law, these programs have allowed local communities to work directly with developers in a way that simply wasn’t possible before,” said Kent Wood, Policy Advisor for Housing North. “By creating a clear incentive for developers to build in rural communities, these programs create a pathway for young people to affordably live and work in the communities they were raised in.”
