Coming soon to Michigan: Hundreds of affordable housing units. See where

• Michigan broadened an increment financing program for blighted sites in 2023, which proponents say could be a boon for affordable housing 
• The state has OK’d 14 projects financed through this avenue, with dozens more making their way through local government channels
• Most of the already approved builds are in the northern or western parts of the state, though interest is growing in Metro Detroit 

LANSING — A new Michigan law that incentivizes developers to build affordable housing in exchange for property tax rebates is spurring growth, according to state officials. 

Local governments have so far approved 14 projects expected to create 999 housing units, including 586 that will be set aside for residents earning 120% or less of their area median income.

The cost? Roughly $84 million in property taxes that will be paid back to developers over 14 to 30 years, depending on the projects, according to initial estimates from the Michigan State Housing Development Authority. 

That’s about $144,000 per affordable unit. 

The new law aims to encourage developers to build housing that targets middle-income earners by allowing them to capture property tax growth for up to 30 years. It's effectively a rebate that covers the difference between the original taxable value and the increased value following development.  

Supporters say that tax growth would not occur "but for" the projects. But critics have questioned the cost because property tax millages help support local schools, which won’t fully benefit from the growth. 

It's a debate playing out right now in East Grand Rapids — one of the state's wealthiest cities — and state housing officials say at least 40 other projects are in the works.

Here is a closer look at the projects approved so far: 

Casa Del Rey, Pontiac

The 50-unit Casa Del Rey is one of three Pontiac projects financed by tax captures for the developer, which broke ground in November 2024. 

All 50 units will be priced for those who earn up to 120% of the area’s median income — $96,960 for a family of two in Oakland County, and $121,200 for a family of four, according to the city.

Overall, the developer estimates a total development cost of around $13.9 million. The project has been approved for a $5.3 million tax capture over 30 years, according to MSHDA. 

The Casa Del Rey building is featured on the National Register of Historic Places, and city officials have said it will be restored “to its original grandeur while addressing Pontiac’s critical need for affordable housing.”

Bellaire Lofts, Bellaire

On the site of a 19-acre former northern Michigan gravel pit is the 50-unit Bellaire Lofts, located in Bellaire. Every unit in the development will be priced for workers who earn 120% of the area's median income, according to project work plans.

For Antrim County, that equates to $89,760 for a two person household, or $112,060 for a four person household.

Project documents note 48 of the 50 townhomes will be built as either two- or three-bedroom suites, with the remaining two being one-bedroom townhomes on the first floor of the building for those with physical disabilities.

The total cost of development is approximately $20.1 million, according to the state’s Housing Development Authority, with the project netting an estimated $10.3 million tax capture over 30 years.

Vandenberg Center, Grand Rapids

The 140-unit Vandenberg Center will occupy seven floors of a former Fifth Third Bank building in downtown Grand Rapids, according to Crain’s Grand Rapids Business.

Of those 140 units, 28 will be reserved for people who earn less than 120% of the area’s median income, according to MSHDA. That’s $127,680 for a family of four living in Kent County. 

The development, led by CWD Real Estate Investment, is expected to cost around $65.1 million. The developer is in line for a $17.8 million tax capture over 30 years. Construction is expected to conclude in 2026. 

Maple Block Flats, Petoskey

Maple Block Flats is a 204-unit project just outside of downtown Petoskey. The site of a former butcher block production facility, will feature eight garden-style apartment buildings with 18 studios, 72 one-bedroom units and 114 two-bedroom units.

Half of the overall units created — 102 in all — will be restricted to residents who earn between 60% and 120% of the area median income, which means a maximum of $93,720 for a family of two. That will last for 22 years, as part of an $18.7 million tax capture agreement. 

In all, total development costs for the Maple Block Flats is estimated at just over $52.1 million according to April 2025 data from the state’s Housing Development Authority. Construction is anticipated to conclude in May 2026.

Midvilla Redevelopment Project, Middleville

The Midvilla Redevelopment Project in Middleville will feature 144 units — all prices for those who earn under 120% of Barry County’s area median income.

For a family of two, that’s just under $99,500; with four, that’s an income of $124,320 per year.

Developers are in line for a $4.5 million tax capture over 14 years, according to MSHDA. 

The project — which is expected to cost around $20.2 million — replaces the long-defunct Middle Villa Inn, a hybrid event space and lodging establishment torn down in 2014, according to Crain’s Grand Rapids Business. 

According to project plans, tenants will live in one of six three-story buildings on the site, which will contain a cumulative 24 one bedroom units and 120 two bedroom units. 

On-site amenities include pickleball courts, a gazebo and a nature path connecting to a local park. Additional commercial outlots on the property will be sold to outside developers, at least one of which will be a McDonald’s drive-thru restaurant, according to Crain’s. 

Sawmill Lofts, Grayling

A redevelopment project years in the making, the 40-unit Sawmill Lofts aims to turn a previously blighted piece of land into a five-story apartment in downtown Grayling that’s expected to open sometime in 2026.

The building will have 19 units priced at or below 120% area median income, which in Crawford County is $78,720 for a family of two. That rate will last for 30 years as part of a tax capture agreement, which was approved at just under approximately $6.7 million. 

The development is expected to cost $15.7 million overall. 

Jefferson Ave. Phase V Project, Detroit

Part of a larger affordable housing development, Phase V of Detroit’s Jefferson Avenue project is expected to include 33 new apartment units downtown, all restricted to those earning at or less than 120% of the area’s median income.

In Wayne County, that means a maximum income of $96,960 for a family of two and $121,200 for a family of four. The project will cost just under $8.2 million to build, according to MSHDA. Developers are in line for a $7.9 million tax capture over 25 years.

According to planning documents, each apartment will include 1,200 usable square feet, and 16 will be reserved for lease by occupants earning no more than 80% of the area's median income — $64,640 for a family of two.

Terra Station, Hudsonville

Hudsonville’s Terra Station is one of three projects in Ottawa County approved for developer tax captures under the new state law. 

Of the 141 housing units planned for the development — which will include 12 different buildings and 4,600 square feet of retail space — 35 will be priced for tenants at or below 120% of the area’s median income, which is about $106,200 for a family of two.

The apartments will be divided between 36 studios, 59 one-bedroom units and 46 two-bedroom units.

Terra Station was approved for an estimated $4.3 million tax capture across 16 years, according to MSHDA. As of April, overall development costs were estimated at just over $32.4 million.

Pleasant Hills, Grand Rapids 

The only project approved so far for which units will be sold, rather than rented, is Pleasant Hills in Grand Rapids’ Roosevelt Park neighborhood, which is part of a  larger development by Habitat for Humanity of Kent County.

The portion of the development approved for a $2.1 million tax capture over 30 years will feature 27 units, all income-limited for those earning at or below 120% of the area’s median income, according to MSHDA. In Kent County, that’s $127,680 for a family of four.

Related:

• Michigan tax capture law spurs new affordable housing. The cost? $144,000 per unit
• Michigan allots $5.4 million for worker housing, down payment help
• Q&A: Michigan housing director says tariffs, ‘uncertainty’ posing challenges

Total development costs are estimated at $13.7 million.

Winsor Place, Spring Lake

A three-story, mixed-use project in Spring Lake, Winsor Place will feature 41 rental units when finished, five of which will be priced at or below 120% of the area’s median income for Ottawa County. 

That’s a maximum income of $106,200 for a family of two and $132,720 for a family of four.

Roughly 2,700 square feet of the development will be devoted to commercial space. Of the 41 residential units, 10 will be studio apartments, 25 are one-bedroom units, one is a two-bedroom unit and five will be townhomes.

Total development costs are estimated at nearly $10.3 million. The developer was approved for a nearly $1.3 million tax capture over 15 years.

Prospect Flats, Hudsonville

Another multi-building project, Hudsonville’s Prospect Flats is expected to include 41 new apartments, five of which will be income qualified.

That means the affordable units will be priced for people who earn less than 120% of the area’s median income — $106,200 for a family of two and $132,720 for a family of four.

The project is expected to include EV charging stations, a fitness center and a proximity to several cafes and restaurants in Hudsonville, according to developers. 

Becky Huttenga, Ottawa County’s agriculture and economic development coordinator, told Bridge Thursday that total development costs are estimated at $7.9 million. The project is expected to benefit from a 17 year, $1.9 million tax capture, according to MSHDA.

Beacon Townhomes + Beacon Square Apartments, Pontiac

Both the Beacon Townhomes and Beacon Square Apartments will redevelop spaces previously owned by the Pontiac-based nonprofit, Lighthouse.

Plans call for 12 new townhomes and 28 apartments in downtown Pontiac.

All units in both projects will be income-qualified for people who earn up to 120% of the area median income, which is  $121,200 for a family of four in Oakland County.

Over 30 years, the developer is in line for a $937,106 tax capture for the townhome project and $1.2 million for the apartment project, according to MSHDA.

Witt Property Developments, White Pigeon

WITT Properties is anticipated to build 48 housing units on more than five acres in White Pigeon.

Each of the units will be reserved for those making at or below 120% of the county’s median income, which in St. Joseph County is $80,760 for a family of two and $100,920 for a family of four.

Total development costs for the rental complex is estimated at $3.4 million, according to MSHDA, which said the developer has been approved for a roughly $1.5 million tax capture over 25 years. 

County commissioners approved the tax incentive in August.