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Greenville weighs tax financing for Hathaway Woods workforce housing

Greenville weighs tax financing for Hathaway Woods workforce housing

Money Moves Greenville, MI local

Builder offers below-market rentals in exchange for infrastructure funding; city manager advises no action

6 days ago: City Council hears TIF proposal

Overview

Updated 1 hour ago

A 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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Key Indicators

172
Homes proposed in Hathaway Woods phases 2-4
The expansion covered by the TIF proposal, plus a workforce rental component.
$354,900
Starting price of current Hathaway Woods homes
Existing phase 1 pricing; phases 2-4 may differ once infrastructure costs are set.

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People Involved

Organizations Involved

Timeline

August 2026 September 2026

3 events Latest: 6 days ago
  1. City Council hears TIF proposal

    Latest Council Meeting

    Allen Edwin Homes VP Brian Farkas presents a housing TIF for phases 2-4; city manager advises no action.

  2. Planning Commission reconvenes on Hathaway Woods plan

    Planning

    Commission reconvened on the 172-home proposal. (Approximate date.)

  3. Planning Commission stalls on Hathaway Woods expansion

    Planning

    Commission 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.

1974–present

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.

Then

The program produced thousands of affordable units in market-rate neighborhoods over the following decades.

Now

It became the national model for inclusionary zoning, though economists debate how much such mandates raise costs.

Why this matters now

Greenville's plan ties development approval to below-market rentals, the same bargain Montgomery County pioneered a half-century ago.

1984–present

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.

Then

The tool funded major redevelopment in the Loop and other areas but pulled revenue from services like schools.

Now

TIF became politically contentious, Illinois tightened oversight, and Chicago became a cautionary reference for other cities.

Why this matters now

Greenville's proposal raises the same question Chicago faced: does the public benefit of subsidized development justify the tax revenue it foregoes?

1990s–2010s

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.

Then

Downtown Detroit saw a construction boom, though the subsidies drew criticism as neighborhoods elsewhere struggled.

Now

Michigan's experience shows TIF can spur development but raises questions about who shares the benefit.

Why this matters now

Greenville's TIF is the same tool Michigan cities have used for years, in miniature.

Sources

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