Recent State housing legislation benefits developers and others who control the housing market, not families who can’t afford to own or rent

Late last week State Representative Kristian Grant stated:

Housing affordability remains one of the biggest challenges facing communities across Michigan, and we have to use every single tool available to address it.

That’s why I’m proud to sponsor House Bill 5806, which establishes and administers a state-level tax credit program to help keep new construction affordable while preserving and upgrading existing affordable housing. This is a practical, proven tool that helps move projects from concept to construction and makes every investment go further.

House Bill 5806 does provide tax credits for new housing construction, but lets be clear it benefits developers, not the people who can’t afford a place to live in the current housing market.

If you read through HB 5806 you will see that there is no language about how these tax credits will benefit those seeking to buy a home or those who rent.

HB 5806 is similar to what Rep. Grant said during an April 2024 interview on WOODTV8. Similarly, when the state wide The Rent is Too Damn High coalition was in Lansing to try and get nine housing bills passed that would benefit tenants, Democratic lawmakers were not siding with the people. In an article from November of 2024, I wrote:

There were a few tenant activists that met with Rep. Kristian Grant (Grand Rapids), since she chairs the Housing Committee. One of the persons who met with Grant told me that she felt that it would only be possible to pass 2 or three of the nine bills that were introduced over the past 12 months. Part of the problem, according to Rep. Grant, was that there were several Democratic Party lawmakers that were not showing up legislative sessions, specifically the ones who lost in the November 5th Election.

There seems to be a pattern with Rep. Grant, which makes sense since she owns several rental properties herself, along with consistently taking campaign money from the Realtors PAC of Michigan.

There is also another housing related bill that also doesn’t really benefit people who are housing insecure. According to an article on Crain’s:

The state House-passed legislation, now pending in the Senate, does not propose a blanket ban on large institutional investors purchasing houses. Instead, it would prohibit such a transaction unless it adds new housing stock, substantially rehabilitates an existing home or is part of a program to create a pathway to ownership for a renter.

House Bill 6074 defines a large institutional investor as an investment fund, corporation, general or limited partnership, limited liability company, joint venture, association or other for-profit entity that directly or indirectly has investment control of more than 100 single-family homes in the state and manages or has a net value of $375 million or more.

So, a large investor, corporation or LLC could continue to own up to 100 single family homes. However, if the large investor, corporation or LLC would add new housing stock, substantially rehabilitate an existing home or is part of a program to create a pathway to ownership for a renter, then the cap on controlling 100 single family homes doesn’t apply. The House version of this bill passed with a vote of 102-3 in favor.

Call me silly, but this piece of legislation still seems like a pretty sweet deal for large investors, corporations or LLCs and does nothing to really protect families who are struggling to purchase a home or pay the high cost of rent.