SB-0951, As Passed House, March 13, 2008
SUBSTITUTE FOR
SENATE BILL NO. 951
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending section 1 (MCL 125.1401), as amended by 1998 PA 33.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) The legislature hereby determines that there
exists in the state a seriously inadequate supply of, and a
pressing need for, safe and sanitary dwelling accommodations within
the financial means of low income or moderate income families or
persons, including those families and persons displaced by the
clearing of slums and blighted areas or by other public programs;
that there exists in this state a high incidence of residential
real property occupied by persons of low and moderate income which
is not safe, sanitary, or adequate and that there is a pressing
need for rehabilitation of that property; that large areas in
municipalities have become blighted or, through programs to remove
blight, have become vacant, resulting in the impairment or loss of
taxable values upon which municipal revenue largely depends; that
large numbers of middle and upper income persons and families have
left municipalities which have high concentrations of low income
persons and families resulting in a high demand for municipal
services notwithstanding a low potential for generating revenues
necessary to pay for those services; that the existence of blight,
the inability to redevelop cleared areas, and the lack of economic
integration is detrimental to the general welfare of the citizens
of this state and the economic welfare of municipalities in this
state; that the financing of housing for persons and families
without regard to income will assist in preserving existing values
of property within or adjacent to blighted or cleared areas; that
economic integration will promote the financial and social
stability of housing for families and persons of low and moderate
income; that in order to improve and maintain the general character
of municipalities having the aforesaid characteristics, it is
necessary to promote the development of housing for persons and
families without regard to income; that to increase the
availability of safe and sanitary housing generally it is necessary
to facilitate the purchase of existing housing by making financing
for the purchase of existing housing available at affordable
interest rates; that there are inadequate social, recreational,
commercial, and communal facilities in residential areas inhabited
by low income or moderate income families or persons and in areas
blighted or vacant because of slum clearance, and that housing
financed pursuant to this act will not be viable without adequate
social, recreational, commercial, and communal facilities in the
surrounding area; and that it is a valid public purpose to finance
the acquisition and rehabilitation of existing housing or the
construction of additional housing for those low or moderate income
families and persons who would otherwise be unable to obtain
adequate and affordable dwellings, to finance the rehabilitation of
residential real property occupied or to be occupied by persons and
families of low and moderate income who would otherwise be unable
to afford the purchase or rehabilitation of residential real
property which is safe, sanitary, or adequate, to finance housing
for persons and families without regard to income in areas in
municipalities which are experiencing blight or inability to
redevelop land cleared of blight which are predominately populated
by low and moderate income persons and families, to finance social,
recreational, commercial, and communal facilities to serve those
families or persons, to enhance authority-financed housing, to
establish and provide acceleration and foreclosure procedures for
authority-financed housing, and to acquire land for present or
future development including that housing and social, recreational,
commercial, and communal facilities; that it is a valid public
purpose to finance safe, sanitary, and adequate mobile homes,
mobile home parks, and mobile home condominium projects for persons
and families of low and moderate income in order to facilitate the
provision of affordable housing for such persons, to finance mobile
homes, mobile home parks, and mobile home condominium projects
without regard to income in areas in municipalities which are
experiencing blight or inability to redevelop land cleared of
blight which are predominately populated by low and moderate income
persons and families, and to finance social, recreational,
commercial, and communal facilities in mobile home parks and mobile
home condominium projects, the financing of mobile homes, mobile
home parks, and mobile home condominium projects being necessary to
fill a gap in the housing market.
(2) It is further determined that the supply of low and
moderate cost housing available for occupancy by certain persons
with disabilities and certain elderly persons is being eroded
through greatly increasing rental rates, and the conversion of low
and moderate cost rental units into condominium units which are
then sold at prices and under financing terms which are not
affordable to those persons with disabilities and elderly persons.
It is further determined that it is a proper public purpose to
prevent the erosion of the supply of existing low and moderate cost
housing available for occupancy by certain persons with
disabilities and elderly persons by taking appropriate action to
prevent the displacement of those persons with disabilities and
elderly persons from existing low and moderate cost housing,
including the making of loans enabling those persons with
disabilities and elderly persons to continue to rent the units in
which they reside.
(3) It is further determined that to assure an adequate supply
of safe and sanitary housing for families of low and moderate
income within the financial means of those families, it is
necessary to facilitate the purchase of safe and sanitary existing
housing by those families; that, in addition, new single-family
housing construction is inhibited by the inability of prospective
purchasers to sell existing single-family residences, and that
those conditions result in the reduction of the number of safe and
sanitary dwellings which would otherwise be made available to
persons of low and moderate income; and that the depressed economy
and decreased employment in this state are detrimental to the
general welfare of the citizens of this state. It is further
determined that it is necessary in order to alleviate those
conditions and is a valid public purpose to provide for the
financing or refinancing, with the assistance of the authority, of
the purchase of existing single-family residences for occupancy by
low and moderate income families and families without regard to
income in areas in municipalities which are experiencing blight or
inability to redevelop land cleared of blight and which are
predominately populated by low and moderate income persons and
families.
(4) It is further determined that there exists in this state a
high incidence of residential rental property which is not safe,
sanitary, adequate, or energy efficient, and that there is a
pressing need for the rehabilitation of residential rental property
in order to preserve and improve the state's existing housing
stock. It is further determined that it is necessary in order to
alleviate those conditions and is a valid public purpose to provide
for the financing, with the assistance of the authority, of the
rehabilitation of existing residential rental property without
regard to the income of the persons or entities owning the property
or of the tenants of the property.
(5) It is further determined that there is a statewide
pressing need for programs to alleviate and prevent conditions of
unemployment in the housing industry, to preserve existing jobs and
create new jobs to meet the employment demands of population
growth, to promote the development of construction related business
enterprises, to revitalize and diversify the Michigan economy in
general, and to achieve the goals of economic growth and full
employment.
(6) It is further determined that the construction and
rehabilitation of safe and sanitary dwellings are necessary to the
creation and retention of jobs in the state.
(7) It is further determined that the retention, promotion,
and development of the housing industry require additional means of
financing to help existing business enterprises expand more
rapidly, to promote the location of additional business enterprises
in this state, and to alleviate and prevent conditions of
unemployment.
(8) It is further determined that economic conditions and
single-family home mortgage market standards, activities, and
practices, including forms of predatory and abusive mortgage loan
financing, have resulted in an increase in the incidence of
mortgage loan default and mortgage foreclosure in the state, and
that there is a pressing need for the creation of programs to
assist low and moderate income individuals and families with the
refinancing of single-family mortgages in this state, which
Senate Bill No. 951 as amended March 5, 2008
programs will prevent families from losing their homes and help to
stabilize the housing market in this state.
(9) (8)
The legislature finds that the
conditions described in
subsections
(1) to (7) (8) cannot be remedied by the ordinary
operation of private enterprise without supplementary public
participation and that the authority and powers conferred by this
act constitute a necessary program and serve a valid public
purpose.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No. 948.
(b) Senate Bill No. 950.
<<(c) Senate Bill No. 1133.
(d)>> House Bill No. 5443.
<<(e)>> House Bill No. 5446.