Changes Loom for DDAs, TIF Districts in Michigan

State lawmakers are looking at significant changes impacting Michigan communities that operate Downtown Development Authorities (DDA) and Tax Increment Financing (TIF) districts.

HB 5856 was introduced by Rep. Eileen Kowal (R – White Lake) to look at reforming the way TIF and DDA districts are run throughout the state. Both the introduced version of the bill, and more recent updated versions have been met with strong criticism from local government and downtown associations, for various reasons.

The Northern Michigan Chamber Alliance recently convened a roundtable discussion with Speaker of the House Jase Bolger’s staff and interested parties from around northern Michigan. The Speaker’s staff stated that the House will potentially move a version of the bill that focuses solely on DDAs and transparency measures this fall, but that a larger discussion on TIF reforms will continue in 2015.

The latest version of the legislation can be viewed here: HB5856 (H-1). An analysis of the original legislation as introduced and be viewed here.