Housing: housing development authority; housing opportunity tax credit program; establish and administer. Amends sec. 22 of 1966 PA 346 (MCL 125.1422) & adds sec. 22e. TIE BAR WITH: HB 5806'26, HB 5807'26

Michigan House Bill 5805 proposes the creation of a Housing Opportunity Tax Credit Program, to be administered by the Michigan State Housing Development Authority. This program aims to incentivize the development of affordable housing by offering tax credits to developers who build or rehabilitate housing units for low- and moderate-income residents. The bill amends existing legislation to include this program and is linked with related bills HB 5806 and HB 5807, which address tax credits for individual income tax and insurance retaliatory tax, respectively.

Supporters of HB 5805 argue that the Housing Opportunity Tax Credit Program will stimulate the construction and rehabilitation of affordable housing, addressing the state's housing shortage and providing more options for low- and moderate-income families. They believe that offering tax credits to developers will encourage investment in underserved areas, leading to economic growth and community revitalization.

Critics of HB 5805 express concerns about the potential loss of state revenue due to the tax credits offered to developers. They question whether the program will effectively lead to the creation of affordable housing or primarily benefit developers without sufficient oversight. Additionally, some worry that the bill may not include adequate measures to ensure that the housing remains affordable in the long term.