Greenville weighs tax financing for Hathaway Woods workforce housing
Money Moves Greenville, MI localBuilder offers below-market rentals in exchange for infrastructure funding; city manager advises no action
6 days ago: City Council hears TIF proposalNew here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
Overview
Updated 1 hour agoA West Michigan homebuilder wants to add 172 homes at Greenville's Hathaway Woods and rent some below market rate. He's asking the city to pay for new roads and sewers with the property tax revenue those homes would generate.
That's a tax increment financing plan, or TIF. For a set term, the increase in property tax revenue from phases 2-4 would go to infrastructure instead of the city's general fund. In exchange, some homes would be leased to qualified renters at lower rates to ease workforce housing strain.
The city manager recommends the council receive the presentation and take no further action, a sign staff are not backing the TIF. The Sept 1 meeting will show how much support the proposal has on the council.
Why it matters
Greenville's choice: redirect new tax revenue to infrastructure in exchange for below-market rentals, or let the workforce homes go unbuilt.
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People Involved
Organizations Involved
One of Michigan's largest residential builders, developing Hathaway Woods in Greenville.
The elected council governs Greenville, Michigan, and will hear the TIF presentation.
Volunteer commission that advises the council on land-use and development proposals.
Portage-based entity that submitted the site condominium and planned unit development amendment for the expansion.
Timeline
August 2026 September 2026
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City Council hears TIF proposal
Latest Council MeetingAllen Edwin Homes VP Brian Farkas presents a housing TIF for phases 2-4; city manager advises no action.
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Planning Commission reconvenes on Hathaway Woods plan
PlanningCommission reconvened on the 172-home proposal. (Approximate date.)
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Planning Commission stalls on Hathaway Woods expansion
PlanningCommission adjourned without a recommendation on the 172-unit expansion. (Approximate date.)
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
Montgomery County, Maryland inclusionary zoning (1974–present)
In 1974, Montgomery County became the first US jurisdiction to require developers of new subdivisions to set aside a share of 'moderately priced dwelling units' for below-market sale or rent.
The program produced thousands of affordable units in market-rate neighborhoods over the following decades.
It became the national model for inclusionary zoning, though economists debate how much such mandates raise costs.
Greenville's plan ties development approval to below-market rentals, the same bargain Montgomery County pioneered a half-century ago.
Chicago TIF districts (1984–present)
Chicago created its first tax increment financing district in 1984 and established more than 150 over the following decades. The districts diverted the growth in property tax revenue from schools, parks, and the city's general fund to subsidize private redevelopment, including luxury projects.
The tool funded major redevelopment in the Loop and other areas but pulled revenue from services like schools.
TIF became politically contentious, Illinois tightened oversight, and Chicago became a cautionary reference for other cities.
Greenville's proposal raises the same question Chicago faced: does the public benefit of subsidized development justify the tax revenue it foregoes?
Michigan downtown TIFs (1990s–2010s)
Michigan cities have long used tax increment financing for redevelopment. Detroit in the 2000s and 2010s used tax abatements and TIFs to subsidize downtown office and residential projects, including major purchases by Quicken Loans founder Dan Gilbert.
Downtown Detroit saw a construction boom, though the subsidies drew criticism as neighborhoods elsewhere struggled.
Michigan's experience shows TIF can spur development but raises questions about who shares the benefit.
Greenville's TIF is the same tool Michigan cities have used for years, in miniature.
