Michigan House Bill HB5805

Michigan 2025-2026 Regular Session

• Introduced: 4/16/26
• Refer: 4/16/26

Caption

Housing: housing development authority; housing opportunity tax credit program; establish and administer. Amends sec. 22 of 1966 PA 346 (MCL 125.1422) & adds sec. 22e. TIE BAR WITH: HB 5806'26, HB 5807'26

Impact

If enacted, HB5805 will have significant impacts on state-level housing laws by creating a formal structure for a tax credit program that encourages both new construction and preservation of existing housing units. The bill outlines the criteria for eligibility and establishes an award cycle for distributing tax credits, ensuring that a portion of the funds are allocated for projects in rural areas and for preserving existing homes. This represents a strategic effort to address housing shortages and improve the quality of life for Michigan residents, particularly those from low-income backgrounds.

Summary

House Bill 5805 seeks to amend the State Housing Development Authority Act by introducing a new framework for a housing opportunity tax credit program. This program aims to incentivize the development of qualified housing projects within Michigan to address the increasing need for affordable housing options. The amendment expands the authority of the state housing development authority by giving it new mechanisms to support housing development and preservation, particularly for projects aimed at low-income families. The bill facilitates the administration of tax credits that can be allocated to qualified housing projects that meet established criteria.

Contention

However, the proposed bill may face scrutiny from various stakeholders. Some community advocacy groups express concern that while tax credits can stimulate development, they may not sufficiently address the root causes of housing affordability, such as rising land costs and stagnant wages. Moreover, the earmarking of funds to rural areas, while necessary, may raise questions about equitable distribution among urban versus rural populations. Critics worry that without additional supportive measures, such as direct funding for low-income housing construction or comprehensive housing policy reform, the effectiveness of HB5805 could be limited.