An Ingham County housing initiative worth about $15 million could be stopped indefinitely after a Michigan judge blocked the state from spending $645 million on work projects Friday.
- A Michigan judge blocked $645 million in state funding Friday, halting Ingham County's $15 million housing initiative and other projects statewide.
- The legal dispute began when House Republicans canceled the grants in December, prompting Democratic Attorney General Dana Nessel to sue, calling the move unconstitutional.
- Ingham County may have to cut homeowner repair programs and stop down payment assistance for first-time buyers due to the funding uncertainty
The ruling affects multiple projects across the state, including Ingham County's affordable housing development, Potter Park Zoo improvements in Lansing and Hayes Hotel renovations in Jackson.
"We need the state Supreme Court to provide some certainty and to provide it quickly," said Alan Fox, Ingham County treasurer and Land Bank chair.
The funding was designated for developing affordable housing and providing financial assistance to help residents find homes in a county facing a serious housing shortage.
"We have a serious housing shortage in Ingham County," Fox said.
The legal battle began in December when House Republicans canceled $645 million in grants, arguing the spending was unauthorized.
"They're spending money we think they have no right to have," A house Republican attorney said.
Democratic Attorney General Dana Nessel deemed the Republican decision unconstitutional, prompting the House to file a lawsuit that led to Friday's court ruling.
A state attorney said approximately 70% of the $645 million was already contracted out, with as much as $450 million committed to various projects. The state is reviewing the court decision to determine if and how the money can be recovered.
The uncertainty leaves Fox concerned about critical programs for county residents. He said the county will likely need to cut back on homeowner repair and weatherization programs, and may have to stop the down payment assistance program that helps first-time buyers purchase homes.
"The immediate thing that will happen is we're going to seriously have to cut back on and perhaps even stop spending money on homeowner repair and weatherization," Fox said. "And if that funding is lost, we're going to have to stop providing that assistance."
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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