Bill Summary – FastDemocracy

Legislative Analysis
REQUIRE LOCAL MASTER PLANS TO INCLUDE HOUSING                               Phone: (517) 373-8080
                                                                            http://www.house.mi.gov/hfa
House Bill 5557 as reported from committee                                  Analysis available at
Sponsor: Rep. Kristian C. Grant                                             http://www.legislature.mi.gov
Committee: Economic Development and Small Business
Complete to 6-18-24
                                                                 (Enacted as Public Act 153 of 2024)
SUMMARY:
       House Bill 5557 would amend the Michigan Planning Enabling Act to require land use
       planning commissions to consider local housing needs in developing or revising a master land
       use plan. Commissions would also have to be representative of the local unit of government’s
       housing interests.
       Master plans
       The Michigan Planning Enabling Act provides guidance in the development of master plans
       adopted or amended by local units of government and requires the consideration of certain
       criteria. Under the bill, a master plan would have to promote or adequately provide for a range
       of housing types, costs, affordability, attainability, ages, and other characteristics (such as
       single- and multiple-family dwellings) to serve the housing demands of a diverse population.
       A master plan also must include subjects that reasonably can be considered pertinent to the
       area’s future development, such as a land use plan, components of infrastructure and a
       transportation system, and recommendations for redeveloping blighted areas. House Bill 5557
       would add an assessment of the community’s existing and forecasted housing demands, and
       strategies and policies to address those demands, to the list of subjects.
       Commission membership
       The act requires members of a local planning commission to be representative of important
       segments of the community in accordance with the major interests existing in the local unit,
       such as agriculture, recreation, education, public health, government, transportation, industry,
       and commerce. Under House Bill 5557, housing would also be one of those major interests.
       MCL 125.3807 et al.
BRIEF DISCUSSION:
       According to Housing subcommittee testimony, while most local governments currently
       consider housing when developing a master plan, there is no requirement in the Michigan
       Planning Enabling Act that they do so. The lack of a statewide requirement has reportedly
       contributed to a mismatch between the housing that is being built and the state’s population
       trends, which has resulted in a missed opportunity to take a more proactive approach to housing
       development. Supporters of House Bill 5557 argue that, while all levels of government should
       work to address the housing crisis, local governments are uniquely positioned to act because
       they have the best understanding of a community’s housing needs and local planning
       commission decisions can directly impact the area's housing stock and home prices. Supporters
       believe that the bill would make a common-sense change to ensure that local master plans take
       housing into consideration when developing the vision for a community’s future, which would
House Fiscal Agency                                                                          Page 1 of 2
       better prepare communities to implement policy and would foster greater public involvement
       in the local planning process.
FISCAL IMPACT:
       The expanded requirements for master plans under the bill could result in additional costs for
       local units of government. The amount of any additional costs cannot readily be determined,
       but it is assumed that they will be relatively minimal.
POSITIONS:
       Representatives of the following entities testified in support of the bill (5-16-24):
          • Michigan Association of Planning
          • Michigan Municipal League
       The following entities indicated support for the bill:
          • Michigan State Housing Development Authority (5-23-24)
          • Apartment Association of Michigan (5-16-24)
          • City of Ann Arbor (5-16-24)
          • Communities First (5-23-24)
          • Grand Rapids Chamber (5-16-24)
          • Home Builders Association of Michigan (5-16-24)
          • Housing North (5-16-24)
          • Michigan Poverty Law Program (5-23-24)
          • Michigan Realtors (5-16-24)
          • Michigan Townships Association (6-11-24)
          • Midland Business Alliance (5-23-24)
          • Property Management Association of Michigan (5-23-24)
          • Rental Property Owners Association of Kent County (5-16-24)
          • Rental Property Owners Association of Michigan (5-16-24)
          • Small Business Association of Michigan (5-16-24)
          • Smith Group (5-16-24)
                                                           Legislative Analyst: Holly Kuhn
                                                                Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                                      HB 5557 as reported   Page 2 of 2
Statutes affected: 
House Introduced Bill: 125.3807
As Passed by the House: 125.3807
As Passed by the Senate: 125.3807
House Concurred Bill: 125.3807
Public Act: 125.3807
House Enrolled Bill: 125.3807