MICHIGAN SENATE PASSES BROWNFIELDS BILL

The Michigan Senate recently passed a bill allowing housing development projects to be eligible for brownfield tax increment financing (TIF). This legislation broadens the potential use of TIF funds for redeveloping contaminated or underutilized properties for residential purposes that previously did not qualify because they are solely housing projects (both new construction and rehab). Previously, brownfield TIF was primarily focused on mixed use, commercial, or industrial projects.

The bill aims to promote the revitalization of blighted areas and address missing middle housing shortages by offering previously unavailable financial incentives to developers interested in constructing housing on brownfield sites. This is largely for housing projects with provide housing at 120% of AMI. If passed by the Michigan House, and signed, all plans will go through MSHDA rather than the MEDC.

In addition, properties with non-native fill will now qualify as a Brownfield Site, even if the non-native fill is not contaminated above GRCC (some exemptions apply).

If you are interested in determining if your project may qualify for TIF, or learning more about how incentives apply to your project, please contact Tom Wackerman at twacker@asti-env.com.

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