Budget Supplement Includes Significant Resources to Help Local Communities

Posted on January 27, 2023 by John LaMacchia

Legislators didn’t waste any time getting to work after the Governor’s state of the State Address and passed a $1.1 billion budget supplemental that included significant resources that will help communities across Michigan. Senate Bill 7 passed the Senate 24-14, and the House 60-48. We expect this bill to quickly be signed by the Governor.

Key Highlights within the bill include:

  • $150 million to create an affordable housing tax credit gap financing program for the purpose of reducing the housing cost burden of residents and increasing the supply of and preserving existing affordable housing. The specifics of this program need to be completed within 45 days of the bill being signed.
  • $100 million in additional Community Revitalization and Placemaking Grants program to invest in projects that enable population and tax revenue growth through the rehabilitation of vacant and blighted buildings and historic structures, rehabilitation and development of vacant properties, and development of permanent place-based infrastructure associated with social zones and traditional downtowns, outdoor dining, and place-based public spaces. This brings the total funding amount to $200 million.
  • $50 million in additional funding for the Missing Middle Housing Program within MSHDA to increase the housing supply by providing cost defrayment to developers investing in, constructing, or substantially rehabilitating properties that are targeted to missing middle households. They also changed the boilerplate to make the money more flexible and easier to distribute. This brings the total funding to $100 million.
  • $75 million in additional funding for the blight elimination program be used for demolition, stabilization, environmental remediation, or rehabilitation. This brings the total funding to $150 million.
  • $25 million for Transportation Economic Development Fund Category B funding. This will support unfunded projects for construction or preservation of streets in cities and villages with populations of 10,000 or less, including, but not limited to, reconstruction, replacement, rehabilitation, and capital preventive maintenance.
  • $25 million to create a Water Shutoff Prevention Fund.

In total, $425 million will be invested. These resources will support multiple efforts the League has identified as priorities in its coalition efforts to help create great places in Michigan.

In addition, $200 million was appropriated to help support a billion dollar investment in the Upper Peninsula to build a facility that will focus on manufacturing paperboard and carton paper. This cutting edge, first of its kind in North America, facility will create 800 permanent jobs and over 1000 construction of jobs. It is truly a generational opportunity and will support the largest manufacturer north of Midland.

John LaMacchia is the League’s director of state & federal affairs. He can be reached at [email protected] or 517-908-0303.

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