2021 Senate Bill 432 / 2022 Public Act 239

Authorize more developer subsidies

Introduced in the Senate

May 11, 2021

Introduced by Sen. Wayne Schmidt (R-37)

To give local governments the authority to grant 15-year property tax exemptions to developers of certain new or rehabbed rental housing projects (dubbed “workforce housing”), which the owners could rent to households whose income is "not greater than the area median income." Rather than property taxes, owners would pay local "service fees" at a rate not exceeding 10% of the owner's "shelter rents," or the tax rate in effect before the rehab project. See also Senate Bills 362, 364 and 422.

Referred to the Committee on Economic and Small Business Development

June 15, 2021

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

June 17, 2021

Passed in the Senate 29 to 6 (details)

Received in the House

June 17, 2021

Referred to the Committee on Local Government and Municipal Finance

June 15, 2022

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Nov. 10, 2022

Passed in the House 71 to 37 (details)

To give local governments the authority to grant 15-year property tax exemptions to developers of certain new or rehabbed rental housing projects (dubbed “workforce housing”), which the owners could rent to households whose income is "not greater than the area median income." Rather than property taxes, owners would pay local "service fees" at a rate not exceeding 10% of the owner's "shelter rents," or the tax rate in effect before the rehab project. See also Senate Bills 362, 364 and 422.

Received in the Senate

Nov. 29, 2022

Passed in the Senate 31 to 5 (details)

Signed by Gov. Gretchen Whitmer

Dec. 13, 2022