Michigan

Michigan does not currently operate an ADU-specific statewide loan, grant, or forgivable-loan program. The Michigan State Housing Development Authority (MSHDA), established 1966, administers the MI Home Loan and MI Home Loan Flex mortgage products, the MI 10K DPA Loan (up to $10,000 down-payment assistance as a 0% interest second mortgage due at sale or payoff), and the MI Neighborhood statewide housing grant program. MSHDA's housing-readiness initiatives explicitly mention streamlining site-plan review and approval for ADU and missing-middle projects, but no ADU-targeted construction loan exists yet. ADU costs may be financed through standard renovation or construction loans when the ADU is part of a qualifying primary-residence transaction.

• MI Home Loan / MI Home Loan Flex (Michigan State Housing Development Authority (MSHDA))
• MI 10K Down Payment Assistance Loan (MSHDA)
• MI Neighborhood Statewide Housing Grant (MSHDA)
• MSHDA Housing Ready Initiative (MSHDA)

Michigan operates a FAIR Plan as the insurer of last resort. The Michigan Basic Property Insurance Association (Michigan Basic) provides residual-market coverage to homeowners, condominium owners, and renters who cannot obtain coverage through the voluntary admitted market. Coverage is written on AAIS Forms 2 or 3 (replacement cost) or Form 2 (repair cost) for owner-occupied homes; Forms 4 and 6 for renters and condominium unit owners. Liability coverage ranges from $100,000 to $300,000, with $1,000-per-person/$25,000-per-accident medical payments. Coverage is more limited than standard market policies and typically more expensive. Michigan is not in the Gulf/Atlantic state-run wind-pool system, but Great Lakes shoreline counties (Wayne, Macomb, St. Clair, Sanilac, Huron, Tuscola, Bay, Arenac, Iosco, Ogemaw, etc., plus the entire Lake Michigan and Lake Superior coast) face occasional wind/hail and lakeshore-erosion exposure. ADUs are typically covered as accessory structures under standard homeowner policies (often at ~10% of dwelling coverage) or require a dwelling-fire or landlord endorsement when rented; the FAIR Plan covers eligible properties on the same homeowner basis without ADU-specific provisions.

Michigan's primary state-level ADU-related programs are MSHDA's Housing Ready Initiative (technical assistance to municipalities for streamlined ADU and missing-middle approval processes) and the MI Neighborhood statewide housing grant. There is no statewide pre-approved ADU plan catalog, no statewide ADU rebate, and no statewide ADU impact-fee waiver statute. The pending HB 5529-5531 / HB 5581-5585 zoning preemption package, if enacted, would establish a statewide ADU floor; until then, state-level intervention is technical-assistance-only.

• MSHDA Housing Ready Initiative — Technical assistance to Michigan municipalities to streamline ADU, missing-middle, and infill-housing approvals. Focuses on site-plan review, density-friendly zoning, and ministerial-permit pathways.
• MI Neighborhood Statewide Housing Grant — MSHDA grant program for housing-supply expansion. Can fund municipal ADU pilot programs and ADU-supportive infrastructure investments.