Housing Affordability and Local Preemption Bills Introduced in the House
A new package of legislation introduced this week in the Michigan House of Representatives aims to significantly reduce zoning restrictions and encourage additional housing development across the state. House Bills 5529 through 5532 were introduced Wednesday as part of a broader effort to address housing supply challenges by limiting local regulatory barriers. On Thursday, Rep. Aragona, chair of the House Committee on Regulatory Reform, began taking testimony on the bills, signaling swift movement on the proposal.
The legislation would pre-empt certain local zoning ordinances by prohibiting local units of government — including counties with zoning authority — from requiring minimum lot sizes greater than 1,500 square feet for new residential construction, provided the proposed dwelling has access to public water and sewer services. Currently, state law allows for a minimum lot size requirement of 12,000 square feet. Supporters of the bills argue that reducing the allowable minimum lot size would open the door to higher-density development, lower land costs per unit, and create more attainable housing options in communities with existing infrastructure.
By tying the reduced lot size threshold to access to public sewer and water, the bills are designed to focus growth in areas where infrastructure can support.
The proposal represents a significant shift in the balance between state authority and local zoning control. Counties and municipalities that currently impose larger minimum lot sizes could be required to amend their ordinances to comply with the new statewide standard.
In addition to the lot-size provisions, lawmakers are considering other measures aimed at reducing regulatory barriers, including proposals that would modify protest petition signature requirements and pre-empt certain local regulations affecting accessory dwelling units (ADUs).
MAC was not consulted in the drafting of the legislation and is still evaluating the bills. MAC has not yet taken a formal position on House Bills 5529–5532 or related proposals.
As testimony continues before the House Committee on Regulatory Reform, lawmakers are expected to hear from developers, local officials, housing advocates, and other stakeholders on the potential impacts of the legislation. The bills are likely to spark ongoing debate over housing affordability, infrastructure capacity, and the role of local governments in land-use planning.
If enacted, the package would mark one of the most significant state-level zoning pre-emptions in recent Michigan history, reshaping how communities regulate residential development in areas served by public utilities. For more information on this issue, please contact Deena Bosworth at bosworth@micounties.org
Special Assessment Deferment Bills Pass House
The Michigan House of Representatives approved House Bills 4079 and 4080 with overwhelming bipartisan support, advancing legislation aimed at reinstating and modernizing a special assessment relief program for vulnerable homeowners across the state. Sponsored by Rep. Schutte and Rep. Hoadley, the bills would revive Michigan’s former special assessment deferment program, originally authorized under 1976 PA 225, which was eliminated for assessments levied on or after October 1, 2020, under Public Act 331 of 2020. It is a special assessment deferment program for senior citizens and individuals who are totally or permanently disabled. The program previously allowed qualifying residents to defer payment of special assessments of at least $300 (exclusive of interest) on their homestead.
Under the program:
- The State of Michigan pays the balance of special assessments owed to the local government.
- A lien is recorded on the property in favor of the state.
- The deferred amount must be repaid upon:
- The sale or transfer of the homestead (or any part of it),
- Entering into a contract to sell the home,
- Within one year after the homeowner’s death.
To qualify for the deferment, residents must:
- Have owned and occupied their Michigan homestead for at least five years.
- Be a United States citizen.
- Have total household income below a statutory threshold.
- Obtain a written consent letter from a mortgage lender or land contract vendor acknowledging the deferment.
HB 4080 would:
- Reinstate the program for special assessments levied on or after October 1, 2022.
- Expand the definition of “special assessment” to include assessments for dam construction or reconstruction.
- Modify spousal provisions so that a deferment would not terminate upon the death of a spouse as long as the homestead remains jointly owned — eliminating the prior requirement that the surviving spouse not remarry.
HB 4079 would:
- Increase the income cap for seniors from $24,305 (the 2019 level) to $34,900 in the first calendar year after enactment.
- Require annual inflation adjustments based on the Consumer Price Index for the Detroit–Warren–Dearborn area, as determined by the state treasurer.
- Eliminate the previous 0.5% per month interest charge on deferred amounts for assessments levied on or after October 1, 2022.
- Require lender consent letters to explicitly acknowledge that the lender’s interest will be subordinate to the state’s lien.
Importantly, neither bill can take effect unless both are enacted. The legislation was prompted in part by the devastating 2020 failures of the Edenville and Sanford dams, which resulted in substantial special assessments for affected residents. Supporters argued that senior citizens and disabled homeowners should not face the potential loss of their homes due to large infrastructure-related assessments beyond their control.
Following today’s strong bipartisan passage in the Michigan House, House Bills 4079 and 4080 now head to the Michigan Senate for consideration. If approved by the Senate and signed by the governor, the measures would formally restore and strengthen a program designed to help protect some of Michigan’s most vulnerable homeowners from losing their homes due to special assessments. For more information on this issue please contact Deena Bosworth at bosworth@micounties.org
MMP Round 2 Funding Opens, Timelines Extended
The state recently announced that Round 2 Materials Management Planning (MMP) grant funds are now available for participating counties. Rather than issuing a new RFP, the Department of Environment, Great Lakes, and Energy (EGLE) will amend existing contracts to add funding and extend project timelines.
Under the proposed amendments, contracts would be extended through July 31, 2027, which is the targeted deadline for completing and submitting county Materials Management Plans for final state approval. No new work program will be required. Counties will instead submit an updated budget showing how additional funds would be allocated across current or proposed areas, along with brief explanations of how the funds will be used. Updated timelines or limited scope adjustments may also be included as needed.
For counties already working through the MMP process, this approach provides additional time and resources without restarting planning efforts or rebidding contracts, offering flexibility to continue coordination, planning, and implementation work through the full planning window.
EGLE has also indicated it will host a series of informational webinars to help counties think through funding options, design, delivery, and collaboration tools as they move forward with MMP development. Counties are encouraged to participate as they update budgets and prepare for contract amendments.
Upcoming EGLE Materials Management Webinars (registration required):
• February 26, 2026 (10:30 a.m. – 12:00 p.m.) – Millages and User Fees: Funding the Future of Sustainable Materials Management
• March 12, 2026 (10:30 a.m. – 12:00 p.m.) – Best Practices in Contracting and Ordinances for Successful Materials Management Programming
• March 24, 2026 (1:00 – 2:30 p.m.) – Innovative Solutions in Recycling Service Provisions
• April 7, 2026 (10:30 a.m. – 12:00 p.m.) – Recycling Authorities and Interlocal Agreements: Collaborating for Sustainable Success
Registration and event details: https://content.govdelivery.com/accounts/MIDEQ/bulletins/40a5d86
Once FY27 appropriations are finalized, the state expects to add remaining (Round 3) funds through a similar amendment process. MAC will continue sharing updates as counties move through planning and contract amendments.
For more information, contact Jimmy Johnson at Johnson@micounties.org.
Podcast 83: Governor’s budget misses on key county goals
Follow the money.
That’s theme of the newest Podcast 83 episode, which breaks down Gov. Gretchen Whitmer’s fiscal 2027 budget proposal, released last week.
“We’ve got a budget presentation from last week we want to talk about,” said host Stephan Currie. “So, let’s jump right into it. Deena, do you want to kick us off a little bit on our top legislative item on the budget? We typically look at revenue sharing.
“So, again this year, we’re looking at the governor recommended flat funding (on county revenue sharing),” said Deena Bosworth, MAC governmental affairs director. “There are no increases proposed.
“We’ve been successful in the Senate in getting increases in their versions of the budget, but as it stands right now, the governor is recommending just flat funding. (The governor pointed in her budget presentation to some other items that … help her justify no increase in revenue sharing for counties. And that is the road funding package,” Bosworth continued.
“From our perspective, the road funding package is great, absolutely, but it doesn’t do anything to help a county general fund budget. Those are restricted revenues that are going to go to county road departments for roads. … So, we are disappointed in that budget recommendation.”
“We also saw a property tax exemption proposed by the governor,” Currie noted. “Deena, do you want to talk briefly about what the governor’s proposing as far as property tax exemptions or cuts, and how that could possibly affect counties if it does?”
“As proposed by the governor, it would not impact local government revenue,” Bosworth replied.
“What she’s calling for is exactly what we’ve been calling for on the Veterans Property Tax Exemption, which is a refundable income tax credit for seniors.
“We’ve heard a lot of talk across the state for several years now on how we need property tax reform … The governor proposed a refundable income tax credit somewhere, and there’s going to be income qualifications for it,” Bosworth continued. “It would probably mean about $345 for the average senior homeowner, with a cost to the state budget of about $90 million. … She’s also proposing pulling $400 million out of the budget stabilization Fund, which may be a way to help pay for this refundable income tax credit for seniors.”
Also touched on in the episode, recorded Feb. 17, were:
- A proposed increase in the tipping fee for waste, which MAC has issues with.
- Proposed new taxes on gambling, vaping and advertising to shore up the Medicaid program after federal cutbacks.
- The timing of budget passage in an election year.
To learn more, click here or on the image above to watch the full episode.
Deer management back in Legislature’s headlights
Legislation billed as pro-hunter and designed to help the state manage its burgeoning deer herd cleared the Michigan House last week.
House Bill 4445, by Rep. Jennifer Wortz, R-Branch) is intended to address high deer numbers that continue to cause vehicle collisions, crop damage and other local concerns for residents and farmers, particularly in the Lower Peninsula. Hunters and outdoorsmen have long argued that existing policies limit effective herd management while doing little to curb the impacts felt at the local level.
HB 4445 would lift the current ban on deer baiting during open hunting seasons in the Lower Peninsula and roll back several related restrictions on feeding deer. The Natural Resources Commission implemented the baiting ban in 2019 amid concerns that concentrated feeding could contribute to the spread of diseases such as bovine tuberculosis and chronic wasting disease. Advocates of the bill say deer behavior doesn’t change with policy, noting that deer already congregate in farm fields, and that regulated baiting can give hunters a better chance to do their part.
MAC supports HB 4445 as a commonsense step toward giving hunters better tools to help manage deer populations. The legislation now advances to the Senate.
For more information on this issue, contact Jimmy Johnson at johnson@micounties.org.
Staff picks
- Lobbyists spent record amount on free meals for Michigan lawmakers in 2025 (Bridge Michigan)
- Report: Michigan-Canada bridge delay could cost up to $7M per week (Bridge Michigan)
- Are Baby Boomers wealthier than previous generations of older adults? (Pew Research)
- Searchers find wreck of luxury steamer lost in Lake Michigan more than 150 years ago (Associated Press)