Legislation would give local governments more flexibility to incentivize housing projects
LANSING, Mich. (June 18, 2026) — As Michigan continues to face a shortage of affordable housing, Sen. Mary Cavanagh (D-Redford Twp.) introduced Senate Bill 1053 today, which would expand the acreage limits for Neighborhood Enterprise Zones (NEZs) to attract new housing developments and support the rehabilitation of existing housing stock in eligible communities.
“Safe, affordable housing should be a realistic goal to achieve for everyone, no matter their income level, zip code, or background — but for far too many residents in my district and around the state, it’s simply out of reach,” said Sen. Cavanagh. “My legislation will help more families secure stable, affordable housing while also equipping local governments with the tools needed to revitalize our communities and make our neighborhoods better, safer places to live, work, and play.”
NEZs have been an effective tool to help spur housing development and neighborhood revitalization across the state. Through targeted property tax incentives for housing projects, NEZs strengthen local tax bases, address blight, and expand access to attainable housing. Sen. Cavanagh’s legislation would give local governments more flexibility by increasing the NEZ acreage cap from 15% to 20% for new and rehabilitated housing zones and homestead zones, all with the goal of increasing housing opportunities.
This legislation is part of Michigan Senate Democrats’ broader A Michigan You Can Afford agenda. The proposal includes plans to make groceries, gas, and other household needs more affordable, cut utility bills, lower healthcare costs, and more. Senate Bill 1053 now awaits further consideration in the Senate Finance, Insurance, and Consumer Protection Committee.
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