Layla Zulfa
Michigan housing advocates are strategically leveraging the results of the recent August primary elections to inject new momentum into stalled housing reform legislation. The primary outcomes have provided a compelling data point, suggesting that voters may be receptive to candidates who champion policies aimed at addressing the state’s housing affordability crisis. This electoral success among cosponsors of the comprehensive Housing Readiness Package is being presented as a clear signal to lawmakers that prioritizing housing solutions can yield positive electoral returns.
Of the 24 state lawmakers who initially cosponsored the Housing Readiness Package, an overwhelming 21 sought reelection in the August primaries. The results painted a picture of strong voter affirmation for these incumbents. A significant majority, 17 out of the 21, faced no primary challenger, indicating a lack of significant opposition or perhaps a tacit acknowledgment of their positions within their respective districts. For the four who did encounter primary challengers, their victories were decisive, with an average margin of 47.2 percentage points. This robust performance has led housing advocates to believe that these seats are considered generally safe for reelection in the upcoming November general election, further bolstering the argument for their continued support of housing reform.
Outgoing Michigan Governor Gretchen Whitmer, nearing the end of her second term-limited tenure, had made housing affordability a central theme of her final legislative push. This focus aligns with broader national trends where state legislatures are increasingly grappling with housing shortages and escalating costs. While the overarching Housing Readiness Package, a multifaceted nine-bill proposal, has encountered significant legislative hurdles, Governor Whitmer has successfully championed and enacted separate, yet related, housing initiatives.
In July, Governor Whitmer signed into law landmark single-stair reform legislation. This reform aims to streamline building codes, potentially reducing construction costs and encouraging the development of more multi-family housing units. Following this, she enacted legislation to establish Michigan’s first state-level Low-Income Housing Tax Credit (LIHTC) program, designed to complement the existing federal LIHTC program. This move is a significant step towards incentivizing the development of affordable housing projects across the state.
Despite these executive successes, the nine-bill Housing Readiness Package, a cornerstone of legislative efforts to address systemic housing challenges, remains in legislative limbo. The package has languished in committee for months, enduring extensive sponsor testimony and public hearings without advancing to a floor vote. This inertia has led to frustration among proponents who believe the legislation addresses critical needs for increasing housing supply and improving affordability.
The primary opposition to the Housing Readiness Package has largely emanated from local governments and their associations. These entities have expressed strong reservations about provisions that they perceive as encroaching upon their local zoning authority. Specifically, concerns have been raised regarding the proposed state preemption of local control over lot sizes, permitting processes, and other land-use regulations. Township associations, in particular, have actively lobbied against the package, flooding legislative hearings with testimony articulating their fears of losing autonomy over development decisions within their communities. However, the package also enjoys substantial support from various segments of the homebuilding industry and a growing coalition of advocates focused on expanding housing supply to meet demand.
Housing advocacy groups, such as Abundant Housing Michigan, are actively capitalizing on the primary election results. They are presenting the electoral success of the package’s cosponsors as empirical evidence that voters endorse and reward politicians who take a proactive stance on housing reform. Citing research from national organizations like YIMBY Action and the Sightline Institute, which highlight high re-election rates for pro-housing lawmakers, Abundant Housing Michigan stated, "You can lead on housing reform, call for statewide action on land use and zoning reform, and the electorate will reward you." This narrative seeks to persuade legislators that supporting such reforms is not only good policy but also politically astute.
The Impact of the Low-Income Housing Tax Credit
The recent enactment of the Michigan Housing Opportunity Tax Credit marks a significant victory for housing advocates and represents a tangible step forward in addressing the state’s affordable housing deficit. Michigan now joins a growing cohort of Midwestern states that are strategically layering their own LIHTC programs atop the federal credit. This coordinated approach is designed to amplify the impact of both programs, making more affordable housing projects financially viable. The passage of this credit is the culmination of years of dedicated advocacy by numerous housing organizations across Michigan.
"Every Michigander deserves an affordable, quality place to call home," Governor Whitmer remarked during the bill signing ceremony, underscoring the human element behind the legislative effort. The Michigan Housing Opportunity Tax Credit is set to cap annual allocations at $42 million, with the state housing authority tasked with its administration. The program will officially take effect on January 1st, allowing qualified affordable housing developments to leverage both state and federal credits. While states like Ohio and Missouri administer larger LIHTC programs, Michigan’s initiative is a pioneering effort for the state and is projected to have a substantial impact.
State Senator Jeff Irwin, a vocal proponent of the Housing Readiness Package and a key supporter of the LIHTC, projected that the newly established credit could facilitate the creation of over 2,500 affordable housing units annually once fully implemented. This projection is based on an analysis of how the combined federal and state incentives will impact development feasibility for projects targeting low- and moderate-income households. The successful passage of the LIHTC program demonstrates a growing legislative consensus on the need for targeted incentives to boost the supply of affordable housing, even as broader zoning reforms face greater resistance.
Reforming Building Codes: The Single-Stair Law
Another critical component of Governor Whitmer’s recent legislative achievements is the single-stair law, which modifies building code requirements for multi-family residential structures. This reform permits developers to omit a second stairwell in smaller apartment buildings, a change that can significantly reduce construction costs and free up valuable interior space for additional living units. Under the revised building code, apartment buildings up to four stories in height are now eligible for single-stair construction.
Furthermore, the legislation extends this allowance to buildings between five and six stories, contingent upon the incorporation of enhanced fire-rated construction measures. This nuanced approach acknowledges the need for safety while still offering flexibility to developers. Advocates argue that these code modifications will lead to a meaningful reduction in construction expenses for dense infill apartment projects throughout Michigan. By lowering the barriers to entry for developers, the aim is to encourage more diverse housing options in urban and suburban areas, thereby contributing to increased housing supply and potentially moderating rental costs.
The Unresolved Zoning Fight and Future Outlook
The broader legislative fight concerning zoning reform, however, remains deeply contested and unresolved. The fate of the nine-bill Housing Readiness Package hinges on overcoming the entrenched opposition from local governmental entities. Heading into the fall legislative session, the package’s future remains genuinely uncertain. The decision of whether committee leadership will ultimately advance these bills is likely to be influenced more by sustained political pressure and coalition-building efforts than by the electoral calculus demonstrated in the recent primaries.
The fundamental disagreement centers on the balance of power between state and local control over land use. Proponents of the Housing Readiness Package argue that statewide reforms are necessary to address a critical housing shortage that transcends individual municipal boundaries. They contend that restrictive local zoning ordinances, such as minimum lot size requirements and limitations on multi-family housing, artificially constrain supply and drive up housing costs. Conversely, opponents emphasize the importance of local control, arguing that zoning decisions should be made by those closest to the community and best equipped to understand local needs and character.
The political dynamics at play suggest that a compromise may be necessary for any significant progress on zoning reform. This could involve phasing in reforms, offering increased flexibility to local governments, or providing additional resources to help communities adapt to new development patterns. The primary election results provide a powerful narrative for advocates, but translating that into legislative action will require navigating complex local interests and finding common ground in a highly politicized debate. The coming months will be critical in determining whether Michigan can move beyond incremental housing policy changes to enact more transformative reforms that address the root causes of its housing challenges. The success of the LIHTC and single-stair reforms offers a glimpse of what is possible when legislative consensus is achieved, but the path forward for comprehensive zoning reform remains a significant hurdle.
