SENATE BILL NO. 1327 September 23, 1998, Introduced by Senators SCHWARZ, SCHUETTE, SHUGARS and BULLARD and referred to the Committee on Economic Development, International Trade and Regulatory Affairs. A bill to provide for the creation of housing opportunity zones; to provide for the adoption of an alternative building code; and to provide for the sale of affordable housing to lower and middle income families. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. This act shall be known and may be cited as the 2 "housing opportunity zone act". 3 Sec. 2. As used in this act: 4 (a) "Census tract" means a census tract as defined by the 5 United States bureau of the census. 6 (b) "Housing opportunity zone" means a housing opportunity 7 zone created under section 3. 8 (c) "State construction code" means the state construction 9 code promulgated by the state construction code commission under 06494'98 FDD 2 1 the state construction code act of 1972, 1972 PA 230, MCL 2 125.1501 to 125.1531. 3 Sec. 3. (1) A city with a population of not less than 4 25,000 persons may establish a housing opportunity zone within 5 that city as provided in this section. 6 (2) After notice and a public hearing pursuant to the open 7 meetings act, 1976 PA 267, MCL 15.261 to 15.275, the legislative 8 body of a city may, by resolution, designate an area within that 9 city as a proposed housing opportunity zone if all of the follow- 10 ing criteria are satisfied: 11 (a) The resolution designating the proposed housing opportu- 12 nity zone provides that the city is creating the housing opportu- 13 nity zone to address the problem of urban blight, to facilitate 14 the redevelopment of vacant land and unoccupied structures within 15 the city, and to provide affordable housing for middle income and 16 lower income families. 17 (b) The proposed housing opportunity zone is a contiguous 18 area of not less than 1 acre. 19 (c) The proposed housing opportunity zone consists of either 20 vacant land or unoccupied residential, commercial, or industrial 21 structures. 22 (d) The proposed housing opportunity zone is within 1 or 23 more census tracts in which the median income of the residents of 24 the census tract is less than or equal to the median income of 25 the residents of the city in which the proposed housing opportu- 26 nity zone will be located. If there are no residents within the 27 census tract in which the housing opportunity zone is proposed, 06494'98 3 1 the proposed housing opportunity zone is adjacent to 1 or more 2 census tracts in which the median income of the residents of the 3 census tract is less than or equal to the median income of the 4 residents of the city in which the proposed housing opportunity 5 zone will be located. 6 (e) The city in which the proposed housing opportunity zone 7 is located offers to sell certain designated property owned by 8 the city located within the housing opportunity zone for the 9 property's true cash value. 10 (3) If the legislative body of a city designates a proposed 11 housing opportunity zone under subsection (2), the city shall 12 submit the resolution and any necessary documentation to the 13 state treasurer for approval. A housing opportunity zone is 14 established when the state treasurer approves the proposed desig- 15 nation in writing to the legislative body of the city. 16 Sec. 4. If a housing opportunity zone is established under 17 section 3, the city in which the housing opportunity zone is 18 located may continue to sell certain designated property owned by 19 the city located within the housing opportunity zone for the 20 property's true cash value. 21 Sec. 5. (1) If a housing opportunity zone is established 22 under section 3, the city in which the housing opportunity zone 23 is located may propose to establish a building and housing code 24 for the housing opportunity zone that permits decent, safe, and 25 sanitary residential housing to be built at a cost that makes the 26 housing affordable to families with an income below the median 27 family income of the city. 06494'98 4 1 (2) A building and housing code proposed to be established 2 under subsection (1) shall comply with all state and federal 3 requirements regarding environmental protection and historic 4 preservation. 5 (3) If a city proposes to establish a building and housing 6 code for a housing opportunity zone under subsection (1), the 7 city shall submit the proposed building and housing code to the 8 department of consumer and industry services for approval. The 9 department of consumer and industry services shall determine if 10 the proposed building and housing code will permit decent, safe, 11 and sanitary residential housing to be built at a cost that makes 12 the housing affordable to families with an income below the 13 median family income of the city and shall determine if all state 14 and federal requirements regarding environmental protection and 15 historic preservation are satisfied. A building and housing code 16 for a housing opportunity zone is effective when the department 17 of consumer and industry services approves the proposed building 18 and housing code in writing to the legislative body of the city 19 in which the housing opportunity zone is located. 20 (4) If the department of consumer and industry services 21 approves a building and housing code for a housing opportunity 22 zone under this section, the state construction code shall not 23 apply to the construction of residential housing within the hous- 24 ing opportunity zone after that building and housing code is 25 approved. 06494'98 Final page. FDD