close
close

Whitmer announces housing and energy affordability plans to lower cost of living in Michigan • Michigan Advance

Whitmer announces housing and energy affordability plans to lower cost of living in Michigan • Michigan Advance

Gov. Gretchen Whitmer announced at the Mackinac Policy Conference that her administration is shifting its focus to increase its 2026 goal of building or rehabilitating 75,000 units of affordable housing by September 2026 to 115,000 and committing to investing federal funds in 28,000 low-income households to make them more energy efficient to reduce monthly energy costs.

“This year we are making the largest real estate investment in Michigan history. …Let’s focus on how we can reduce costs on two of people’s biggest expenses, housing and energy,” Whitmer said alongside Michigan housing and environmental leaders at the Grand Hotel on Mackinac Island. “I think we’re keeping our eye on the ball and recognizing that reducing costs for people and helping more people access affordable housing are areas where we should all be able to find common ground. I am very optimistic about achieving this goal.

In an interview with Whitmer before the Mackinac conference at the governor’s mansion, she said Michigan was “ahead of schedule on the goals we have set for housing.”

“So increasing our investment, our timeline and our goals is something that will be announced (at the Mackinac conference). And then reduce energy costs. I think the Biden administration has given us a lot of resources. From housing goals to expanding help for low-income homes to use energy better through… appliances or making their homes more energy efficient , etc.

Amy Hovey, Executive Director of the Michigan State Housing Development Authority (MSHDA), at the Mackinac Policy Conference, May 29, 2024 | Anna Liz Nichols

Whitmer set an initial goal of creating 75,000 additional units of affordable housing in Michigan during the 2021 Mackinac Policy, but with the Michigan State Housing Development Authority (MSHDA) reporting that the agency has already created nearly 50,000 units ahead of schedule, the target is now being achieved. increased by 53% to 115,000.

It’s a decision MSHDA Executive Director Amy Hovey told the Advance ahead of the announcement shows an understanding on the part of the state of the widespread effects that access to housing can have on local communities and the state as a whole.

“If we want economic growth, if we want high levels of education, if we want people to be happy, if we want crime to go down, it all depends on people having stable housing and quality,” Hovey said. THE Advance. “The confidence the governor has placed in our agency to work with partners across the state to develop even more housing and increase this goal excites me…the fact that she sees promise in our agency and the fact that ‘it increases the objective.’

The 75,000-person goal was always an important goal, Hovey said — one that required state, local and federal partners to come together. Raising the goal only reinvigorates the progress MSHDA has made.

“It really gives me that kind of invigoration that you need to say, ‘OK, we’re doing this’ because it gets tiring, you’re in the trenches, you’re trying to make meaningful change and bring everyone along. and to see that people recognize that we are achieving this is exciting,” Hovey said.

Housing is recognized by Michigan stakeholders as a key component of the state’s population growth and talent retention in Michigan’s workforce. The Growing Michigan Together Council, charged by Whitmer with providing advice on Michigan’s population growth, identified housing as a priority to focus on for population growth in his report in December.

The board said in its report that Michigan found itself in “an ongoing crisis and must act now” as a state. fell ranked 49th in terms of population growth.

But Michigan is working on things, Whitmer said, acknowledging that it will take work to get more people to understand that Michigan is a place to make a life.

“Things are moving in the right direction,” Whitmer said. “There are projects underway everywhere to build new housing, revitalize our communities and create more commercial space across our state and of course we’re fixing the damn roads. Don’t complain (about construction). You are welcome.”

Cost of living in Michigan outpaces wage growth, state finds some of the highest rent increases in the country in recent years and young people in particular are leaving the state in search of higher salaries.

EGLE Director Phil Roos at Mackinac Policy Conference May 28, 2024 | Susan J. Demas

Part of lowering the cost of living is reducing energy costs for residents, Whitmer said, announcing that Michigan was receiving $367 million in home energy rebates from the U.S. Department of Energy and programs Solar for All from the US Environmental Protection Agency.

Whitmer said these funds will help reduce monthly energy bills for 28,000 Michigan homes through the installation of solar panels and the installation of energy-efficient water heaters, stoves and more.

“Just think about what this quality of life means to people. You can save hundreds of dollars on your bills, be warmer in the winter, and you won’t have to wear a jacket to dinner,” Whitmer said. “Your kids will come in after a long day of hot summer play to feel cool and calm. Your home will be less susceptible to extreme weather events caused by climate change and when you sell your home, it will be more attractive to potential buyers.

The Michigan Department of Environment, Great Lakes and Energy (EGLE) will lead the new energy efficiency financing programs and department Director Phil Roos said the program will be accessible to families at same time next year.