LANSING, Mich. (Michigan News Source) — Two years after Michigan expanded its brownfield redevelopment law to support middle-income housing, the first wave of taxpayer-backed projects is taking shape with more than a dozen developments approved and dozens more in the pipeline.

The policy, enacted in July 2023 as part of the expanded Brownfield Redevelopment Financing Act, allows developers to collect future property tax revenue from the projects built on blighted or underused land. In exchange, they must reserve a portion of units for residents earning up to 120% of the area’s median income.

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So far, 14 projects have been approved statewide, totaling 999 housing units, 586 of which are set aside for income-qualified residents, Bridge Michigan reported. Developers are expected to receive over $84 million in tax captures—an average of about $144,000 per income-restricted unit, according to the Michigan State Housing Development Authority.

 Most of the approved developments are located in western and northern Michigan, though officials say more communities in Metro Detroit and suburbs like East Grand Rapids are exploring the program. According to the Michigan State Housing Development Authority, at least 40 additional proposals are under review.