Governor Gretchen Whitmer today signed a package of bipartisan bills and highlighted significant investments in the Fiscal Year 2027 budget aimed at expanding housing opportunities across Michigan. These actions fulfill promises made in her 2026 State of the State Address, focusing on increasing affordable housing, reducing costs, and protecting homebuyers.
The new legislation establishes the Michigan Housing Opportunity Tax Credit, designed to complement the federal low-income housing tax credit, thereby facilitating the construction of more affordable homes. Additionally, the bills streamline building regulations to accelerate new home construction and implement a prohibition on institutional investors, such as hedge funds, from owning more than 100 single-family homes in the state, preventing them from pricing out working families.
"Every Michigander deserves an affordable, quality place to call home," said Governor Whitmer. "I’m proud to sign these bills that cut red tape, lower housing costs, and expand our housing stock available to working families looking to put down roots." She added that her administration has built more homes than any in state history, lowering costs and increasing homeownership.
The Michigan Housing Opportunity Tax Credit, enacted through House Bills 5806 and 5807 and Senate Bill 966, will provide up to $42 million annually in credits. This initiative is expected to fund approximately 2,500 new affordable housing units each year, nearly doubling the state's ongoing investments. Eligible projects must reserve units for renters at or below 60% of the area median income.
Further legislative changes, including House Bills 5570 and 5571, amend the Single State Construction code to permit residential buildings up to four stories with a single staircase, an increase from the previous three-story limit. This modernization aims to reduce construction costs by up to 10%, saving time and resources for both builders and renters.
To safeguard working families and first-time homebuyers, House Bill 6074 prohibits large institutional investors from purchasing single-family homes in Michigan, setting a cap of 100 homes. State Rep. Karl Bohnak said, "This bill ensures that Michigan families are not squeezed out of the housing market by large corporations."
The balanced, bipartisan FY27 budget allocates $50 million to the Michigan Housing and Community Development Fund, supporting affordable housing needs and neighborhood revitalization. The budget also includes $5 million for permanent supportive housing and an additional $24 million to regional planning bodies dedicated to preventing and ending homelessness.
These efforts build on Governor Whitmer's administration's record of housing investments, including closing the housing gap by 44%, launching innovative financing programs, and setting ambitious goals to build 115,000 new housing units.