State laws to expand workforce housing coming to fruition

Legislation passed late last year aimed at boosting the supply of so-called “workforce housing” around the state is starting to have an impact.

At least two communities in Michigan — White Cloud and Jackson — have passed ordinances in recent weeks that homebuilding executives say allows their companies to develop new rental housing that can be leased at a much lower rate, largely by allowing the developer to make an annual payment as opposed to paying traditional property taxes.

“We’re seeing a huge sense of urgency from city leaders,” Brian Farkas, director of workforce housing at Portage-based Allen Edwin Homes, said of the push by Michigan municipalities to ramp up housing development amid a major shortage.

Farkas told Crain’s that the company has had discussions with myriad other municipalities around the state, from Muskegon to Hillsdale to Battle Creek, each of which have talked about adopting ordinances that would allow for more workforce housing, generally defined as housing that is affordable for those earning between 80% and 120% of the area median income.