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Whitmer’s State of the State will include affordable housing tax credit

A planned affordable housing development in Detroit
A planned affordable housing development in Detroit

Governor Gretchen Whitmer wants the legacy of her final year in office to include relief in the expense and availability of affordable housing.

“Together, we can put the American dream back within reach for more Michigan families,” Whitmer said in a statement released by her office as she prepares to deliver her eighth and final State of the State address Wednesday night.

“Every Michigander deserves an affordable place to live in a vibrant community,” she said. “That’s why we worked together to ‘build, baby build’ more housing than any administration in state history. In 2026, let’s make it even more efficient and less expensive to build quality, affordable housing that meets people’s needs.”

The centerpiece of the plan is an affordable housing tax credit to serve as an incentive for developers to build homes financially within reach to low- and moderate-income households.

Whitmer is also expected to endorse streamlining zoning rules, eliminating some construction regulations, and tightening deadlines to approve building permits.

At least some of the elements appear to match an approach rolled out last week by a bipartisan group of state lawmakers.

Representative Joe Aragona (R-Clinton Township), who chairs the House Regulatory Reform Committee and has taken a leading role in that effort, told Michigan Public Radio that he will be on the lookout for solutions that put more homes on the market.

“What can we do about it to curb that steep, steep spike that’s making housing unaffordable? It’s on the supply side,” he said. “We need more housing being built and being sold.”

But any plans that would take control of zoning regulations from local boards could meet resistance from city and township officials, who have argued it is their job to look out for ensuring the quality of life of their residents.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987.