HOUSE BILL No. 5802


     March 14, 2002, Introduced by Reps. Kolb, Hale, Spade, Zelenko, Schauer, Murphy, Bernero, Minore, Jacobs, DeWeese and
Lockwood and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 270.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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               SEC. 270.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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          2001, A TAXPAYER, OTHER THAN A RESIDENT ESTATE OR TRUST, MAY

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          CLAIM A CREDIT AGAINST THE TAX IMPOSED BY THIS ACT FOR A CONTRI-

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          BUTION TO A COMMUNITY HOUSING DEVELOPMENT ORGANIZATION.

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               (2) THE CREDIT ALLOWED BY THIS SECTION SHALL NOT EXCEED

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          $100.00, OR $200.00 FOR A HUSBAND AND WIFE FILING A JOINT

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          RETURN.

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               (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION

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          EXCEEDS THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT

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          PORTION OF THE CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE

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          REFUNDED.


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               (4) AS USED IN THIS SECTION, "COMMUNITY HOUSING DEVELOPMENT

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          ORGANIZATION" MEANS A PRIVATE NONPROFIT ORGANIZATION THAT MEETS

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          ALL OF THE FOLLOWING CRITERIA:

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               (A) HAS AMONG ITS PURPOSES TO PROVIDE DECENT HOUSING THAT IS

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          AFFORDABLE TO LOW-INCOME AND MODERATE-INCOME PERSONS.

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               (B) MAINTAINS ACCOUNTABILITY TO LOW-INCOME AND

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          MODERATE-INCOME COMMUNITY RESIDENTS BY DOING ALL OF THE

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          FOLLOWING:

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               (i) ASSURING THAT AT LEAST 1/3 OF ITS GOVERNING BOARD MEM-

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          BERS ARE RESIDENTS OF LOW-INCOME NEIGHBORHOODS OR ELECTIVE REPRE-

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          SENTATIVES OF A GROUP THAT REPRESENTS OR ADVOCATES FOR RESIDENTS

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          OF LOW-INCOME NEIGHBORHOODS.

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               (ii) PROVIDING A FORMAL PROCESS FOR LOW-INCOME PROGRAM BENE-

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          FICIARIES TO ADVISE THE ORGANIZATION REGARDING DESIGN, SITING,

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          DEVELOPMENT, AND MANAGEMENT OF AFFORDABLE HOUSING.

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               (C) IS ORGANIZED UNDER STATE LAW.

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               (D) IS TAX EXEMPT UNDER SECTION 501(c)(3) OR (4) OF THE

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          INTERNAL REVENUE CODE.

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               (E) NO PART OF ITS NET EARNINGS INURE TO THE BENEFIT OF ANY

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          MEMBER, FOUNDER, CONTRIBUTOR, OR INDIVIDUAL.

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               (F) IS NOT CONTROLLED BY OR UNDER THE DIRECTION OF INDIVIDU-

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          ALS OR ENTITIES THAT SEEK TO DERIVE PROFIT OR GAIN FROM THE

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          ORGANIZATION.

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               (G) IF THE COMMUNITY HOUSING DEVELOPMENT ORGANIZATION

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          INCLUDES A PUBLIC BODY OR IS STATE OR LOCALLY CHARTERED, THE

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          PUBLIC BODY OR STATE OR LOCAL GOVERNMENT DOES NOT HAVE THE RIGHT

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          TO APPOINT MORE THAN 1/3 OF THE MEMBERSHIP OF THE GOVERNING BOARD



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          OF THE ORGANIZATION AND NOT MORE THAN 1/3 OF THE BOARD MEMBERS OF

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          THE ORGANIZATION SHALL BE PUBLIC OFFICIALS.

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               (H) USES GENERALLY ACCEPTED ACCOUNTING METHODS AS THE STAN-

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          DARD FOR FINANCIAL ACCOUNTABILITY.
















































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