The state is launching housing and energy plans to cut costs

PRESS RELEASE
GOVERNOR’S OFFICE
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LANSING, Mich. – At today’s Mackinac Policy Conference, Governor Gretchen Whitmer announced significant progress on housing and energy initiatives, continuing Michigan’s leadership in the use of federal climate and clean energy funds. This includes raising the state’s five-year housing production goal by more than 50 percent and investing federal funds to lower energy costs for 28,000 low-income households through the Solar for All and Home Energy Rebate Programs. The initiatives will lower housing and utility costs for Michiganders and move the state closer to achieving the goals of the MI Healthy Climate Plan. The initiatives will lower housing and utility costs for Michiganders and move the state closer to achieving the goals of the MI Healthy Climate Plan.

“Together, we will lower housing and energy costs for Michiganders,” Whitmer said. “By raising our statewide housing goal to 115,000 units, we will build more housing to lower costs and ensure every Michigander has a safe and affordable place to call home. Thanks to our partners in the Biden-Harris Administration, federal resources are moving toward lowering energy costs for Michigan families by helping them switch to more energy-efficient home appliances and install solar panels on their homes or communities to save money on their utilities. These improvements will keep families cool in summer and warm in winter and improve their quality of life. Let’s continue to take action to reduce housing and energy costs, two fundamental issues that make a real difference to people’s lives.”

Governor Raises State’s Five-Year Housing Production Goal by More than 50%

Since Whitmer took office, the Michigan State Housing Development Authority (MSHDA) has invested twice as much as the last administration to build, renovate or finance 34,000 homes, supporting 20,000 jobs. At the 2021 Mackinac Policy Conference, the Governor set a goal of permitting, constructing or renovating 75,000 additional housing units over a five-year period – through September 2026. Currently, Michigan is ahead of schedule with nearly 50,000 units constructed, renovated or permitted. apartments. The Governor today raised Michigan’s five-year housing goal to 115,000, a 53% increase. This brings Michigan closer to its goal of ensuring everyone has access to the middle class, starting with the homes and utilities they can afford.

“We celebrate our hard work in providing $1.23 billion to finance, build and renovate thousands of homes last year, while recognizing that we must raise the bar higher to end the housing crisis for Michigan families,” said Amy Hovey, CEO and Executive Director of MSHDA. “We strive to listen to our local and regional partners, quickly implement creative solutions and work hard to improve communities and neighborhoods.”

In addition to investing unprecedented new resources, MSHDA is implementing the Statewide Housing Plan in partnership with members of the Statewide Housing Partnership and local and regional leaders from each of the Regional Housing Partnerships. This work has resulted in new investments by the state legislature, solutions that eliminate unnecessary burdens and bureaucracy for developers and local governments, and collaboration to strengthen neighborhoods and communities.

MSHDA’s latest innovations include:

• Housing Readiness Incentive Grant Program: A $5 million fund to help cities, villages and municipalities adopt or eliminate rules and regulations that encourage building more housing and increasing housing affordability
• Missing Middle Housing Program: $110 million in the American Rescue Plan Act to support 50 projects and add 1,492 new homes statewide for middle-class working families
• MI Neighborhood: $60 million in annual assistance to address goals and priorities outlined in the Statewide Housing Plan

Michigan brings home millions of federal dollars to lower energy costs

Whitmer also announced today that Michigan brought home $367 million from the U.S. Department of Energy’s Home Energy Rebate and U.S. Environmental Protection Agency’s Solar for All programs, designed to lower energy costs for Michiganders. The goal of this financing is to reduce monthly bills for 28,000 homes, help more than 18,000 low-income households install solar panels on their roof or in their community and install energy efficiency measures, and reduce the cost of new, energy-efficient appliances for more than 10 000 working families. The Michigan Department of Environment, Great Lakes and Energy (EGLE) will administer these new programs.

“Our new home energy rebate and MI Solar for All Programs, made possible by the Mitigation of Inflation Act, will lower energy costs for thousands of households across the state while helping to implement the MI Healthy Climate Plan, the state’s climate action plan,” said Phil Roos, director of EGLE. “Expanding access to renewable energy, energy efficiency and efficient appliances is a critical step, especially for our low-income and environmental justice communities, toward reducing pollution, protecting our world-class natural resources and lowering energy costs for families. These investments will make a positive and lasting impact on Michiganders today and tomorrow.”

Michigan received just over $210.8 million for state home energy rebate programs. Of that amount, $105.6 million went to home efficiency rebates and $105.2 million went to home electrification and appliance rebates. Home Energy Efficiency Rebates provide financing to reduce the upfront costs of whole-home energy retrofits for single-family and multifamily homes, supporting retrofit and electrification efforts. Home electrification and appliance rebates help finance the upfront costs of efficient electrical technologies and appliances in single- and multi-family homes. These resources will be made available to families this fall.

Michigan recently celebrated a historic $156 million investment to accelerate the deployment of affordable renewable energy to thousands of low-income households across the state. Known as the Michigan Solar for All (MISFA) program, this initiative aims to reduce utility costs for families, support job creation and strengthen Michigan’s advanced clean energy sector – all while moving the state closer to the goals of the MI Healthy Climate Plan . Project MISFA is expected to make a significant impact by providing low-income households across Michigan with access to affordable renewable energy and enabling home repairs, reducing energy bills by up to 20% and providing additional significant benefits. These dollars will be available to Michigan families in summer 2025.

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