State Rep. Cam Cavitt today announced his plan to ensure the continuation of an affordable housing credit program that has been directly benefiting Northern Michigan. The Residential Housing Facilities Act and Attainable Housing Facilities Act, first passed into law in 2022, allows communities to choose to create districts where developers can build housing that is eligible for certain tax breaks if they meet a set of specific affordability criteria.

“These attainable housing districts have been working for Northern Michigan,” said Cavitt, R-Cheboygan. “By drawing these developers in to build affordable and attainable housing, we’re expanding our tax base and creating more opportunities for young people to live closer to where they work. These housing districts are letting young teachers live near their schools, and young hourly employees live close enough to get home in time for dinner.”

To qualify for the tax credit of up to 50%, developers must construct housing units for residents making under 120% of the area median income (AMI). The program was initially set to expire at the end of 2027, but Cavitt’s plan would ensure their continued viability for the next decade.

“Since being signed into law, these programs have allowed local communities to work directly with developers in a way that simply wasn’t possible before,” said Kent Wood, Policy Advisor for Housing North, a Northern Michigan nonprofit that bridges the gap between developers and communities.  “By creating a clear incentive for developers to build in rural communities, these programs create a pathway for young people to affordably live and work in the communities they were raised in.”

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