| PROGRAM | OVERVIEW AND APPLICABILITY | BENEFIT | TERM | AGENCY | PROJECT TYPES |
|---|---|---|---|---|---|
| Tax Credit Programs | |||||
| Low Income Housing Tax Credits | Provides equity to projects that develop and preserve affordable rental housing for households earning up to 60% of AMI. | 4% or 9% of eligible expenses each year | 10 years | Michigan State Housing Development Authority | Multifamily and Single Family Residential |
| Historic Tax Credits | Provides tax credits for the substantial, certified rehabilitation of certified historic structures for commercial, industrial and rental residential purposes. | Up to 25% of eligible rehabilitation expenses | N/A | U.S. Department of the Interior, Michigan State Housing Development Authority | Multifamily, Residential, Commercial, Industrial, and Mixed-Use |
| New Markets Tax Credits | Provides incentives that can be monetized for eligible projects benefitting targeted populations within designated low income census tracts. | 39% Federal Tax Credit | 7 years | U.S. Department of the Treasury | Multifamily, Residential, Commercial, Industrial, and Mixed-Use |
| Tax Abatement | |||||
| Commercial Rehabilitation Exemption (PA 2010 of 2005) | Provides tax incentives for the rehabilitation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility in a Commercial Rehabilitation District. | 100% tax abatement on improvements. Excludes school millage. | 1-10 years | City of Detroit / Detroit Economic Growth Corporation | Multifamily, Mixed-Use, and Commercial |
| Commercial Facilities Exemption (PA 255 of 1978) | Provides tax incentives for the redevelopment or new construction of commercial property for the primary purpose and use as a commercial business enterprise. The Commercial property must be zoned to allow for mixed use that includes high-density residential use. | 100% tax abatement on rehabs/50% tax abatement on new facilities | 1-12 years | City of Detroit / Detroit Economic Growth Corporation | Commercial Only |
| Obsolete Property Rehabilitation Exemption (PA 146 of 2000) | Provides tax incentives for the rehabilitation of obsolete commercial property. | 100% tax abatement on improvements. Excludes school millage. | 1-12 years | City of Detroit / Detroit Economic Growth Corporation | Multifamily, Mixed-Use, and Commercial |
| Industrial Facilities Exemption (PA 198 of 1974) | Provides tax incentives to manufacturers to enable the renovation and expansion of aging facilities, assist in the building of new facilities and to promote the establishment of high tech facilities. Eligible facilities also include, engineering, R&D, or logistics operations. | 50% tax abatement on real & personal property | 1-12 years | City of Detroit / Detroit Economic Growth Corporation | Industrial |
| Industrial Facilities New Personal Property Tax Exemption (PA 328) | Provides tax incentives for the installation of new equipment specific to commercial users. | 100% abatement | Determined during underwriting | City of Detroit / Detroit Economic Growth Corporation | Commercial |
| Neighborhood Entreprise Zone Exemption (PA 147 of 1992) | Provides tax incentives for new and rehabilitated residential properties. | New facilities: 50% state average tax rate. Rehabs: Tax rate frozen at prior year amount | 6-15 years | City of Detroit / Detroit Economic Growth Corporation | Residential |
| Brownfield Tax Increment Financing (Act 381 of 1996) | Tax Increment Financing (TIF) promotes the revitalization of contaminated, blighted and obsolete properties within the boundaries of the City of Detroit. Developers of approved Brownfield plans are eligible for TIF reimbursement for activities such as remediation, demolition, site preparation, storm water management public infrastructure improvements, and in some cases parking garages. | 100% reimbursement of eligible costs | 1-30 years | Detroit Brownfield Redevelopment Authority | Multifamily, Commercial, Industrial, and Mixed-Use |
| Public Subsidy | |||||
| HOME Partnerships | Supports development of rental or for-sale affordable housing available to households earning up to 60% of AMI. | Project specific, total annual city funding of $5 million | Project-specific | U.S. Department of Housing and Urban Development through the City of Detroit | Multifamily and Single Family Residential |
| Community Development Block Grants | Federal block grants awarded by the City of Detroit for a variety of community development purposes including demolitions, public facility rehabs, and public improvements. | Project specific, total annual city funding of around $30 million | N/A | U.S. Department of Housing and Urban Development through the City of Detroit | Multifamily and Single Family Residential, Mixed-Use |
| Community Revitalization Program | State sponsored performance based grants/loans targeted for the renovation of blighted, obsolete or historic resource sites within targeted investment areas. | <$1.0 million for grants, up to $10 million for loans | N/A | Michigan State Housing Development Authority | Mixed use and Commercial projects in proximity to major commercial corridors |
| Project Based Vouchers | Rent compensation on units reserved for tenants eligible for Housing Choice Voucher Program assistance. PBV’s through MSHDA are only for supportive housing while PBV’s through DHC are more general. | 110% of Fair Market Rent (including utility allowance) minus tenant contribution | 5-15 years | Detroit Housing Commission | Multifamily and Single Family Residential |
| Annual Contribution Contracts | Public housing operating subsidy contract available through the Detroit Housing Commission. | Monthly operating support for public housing units | Project-specific | Detroit Housing Commission | Multifamily and Single Family Residential |
| Bond Financing | Funds dedicated to infrastructure needed to support multi-family and mixed-use housing in Targeted Multi-Family Housing Areas. | Up to $10 million per project from an annual fund of $50 million | Project-specific | City of Detroit | Multifamily and Single Family Residential |
| DWSD Capital Partnership Program | Funds installation of approved Green Stormwater Infrastructure (GSI) projects for non-residential property owners. | Up to 50 percent of design, installation and capital costs will be reimbursed, up to a maximum $50,000 | N/A | Detroit Water and Sewerage Department | Non-Residential |
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For current info please visit detroitmi.gov