SB 422 Summary

• Establishes residential housing districts in Michigan cities, villages, and townships that can exempt qualifying residential facilities from ad valorem property taxes.

• Property owners who construct new residential facilities or rehabilitate existing ones (with at least $50,000 investment) in approved districts can obtain exemption certificates valid for 1-12 years.

• Requires at least 30% of residential units (or 1 unit minimum) to be reserved for income-qualified households earning no more than 120% of county median income, with rent capped at 30% of household income.

• Implements a residential housing facility tax on exempt properties calculated at half the commercial/industrial property tax rate, with school district portions redirected to the state school aid fund.

• Sunsets new exemption authority on December 31, 2027, though existing exemptions continue through their certificate periods.