Berrien County officials have approved a new Tax Increment Finance (TIF) district to support a housing development in Watervliet.

Berrien County Community Development Director Dan Fette said the plan will enable redevelopment of a 7.5-acre parcel (east of the intersection of M140 and Red Arrow Highway north of the hospital) for 19 single-family homes, including four units reserved as income-restricted rentals for households at or below 120% of area median income for 10 years. The remaining 15 homes will be available at market rate. Estimated total investment is $12.6 million, with construction expected to start this fall and completion anticipated by fall 2027.

The development is proposed by Allen Edwin Homes, headquartered in Portage, Michigan. Approved tax increment financing districts allow developers to recoup a portion of their investment through property taxes while localities continue collecting their existing property tax revenues. Officials say the Watervliet property is eligible for such a TIF plan.

Fette said the need for housing in Berrien County is clear, citing housing studies showing persistent demand in the region, with 23,000 new units needed and a shortage of affordable homes for “missing middle” households in the $50,000–$100,000 income range. He said the project fulfills the requirement for documented housing need.

As approved, the TIF revenue collection would begin in 2026, with capture planned over an 18-year period. The plan was unanimously recommended by the Brownfield Authority and approved by the Watervliet City Commission on August 5.

Final reimbursement agreements and project plans will now be submitted for state review.