April 24, 2007, Introduced by Rep. Tobocman and referred to the Committee on New Economy and Quality of Life.
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending sections 58, 58a, 58b, and 58c (MCL 125.1458,
125.1458a, 125.1458b, and 125.1458c), as added by 2004 PA 480.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 58. (1) The definitions in section 11 apply to this
chapter unless otherwise provided in this chapter.
(2) As used in this chapter:
(a) "Adjusted household income" means that term as defined in
rules of the authority.
(b)
"Affordable housing" means residential housing that is
occupied
by low income, very low income, or extremely low income
households,
and results in monthly housing costs equal to no more
than
approximately 1/3 of the adjusted household income of the
occupying
household.
(b) "Downtown area" means an area where 20 or more contiguous
properties have been planned, zoned, or used for commercial
purposes for 50 or more years and where the buildings are built
adjacent to each other and up to the public right-of-way. In order
to be a downtown area, the area must contain a significant number
of multilevel, historically significant buildings.
(c) "Eligible applicant" means a not-for-profit corporation, a
for-profit corporation, a municipality, or a partnership that is
approved by the authority and that is organized for the purpose of
developing and supporting affordable housing for low income, very
low income, or extremely low income households or revitalizing
downtown areas.
(d) "Extremely low income household" means a person, a family,
or unrelated persons living together whose adjusted household
income is not more than 25% of the median income, as determined by
the authority.
(e) "Fund" means the Michigan housing and community
development fund created in section 58a.
(f) "Low income household" means a person, a family, or
unrelated persons living together whose adjusted household income
is more than 50% but not more than 60% of the median income, as
determined by the authority.
(g) "Multifamily housing" means a building or buildings
providing housing to 2 or more households, none of which is owner
occupied.
(h) "Very low income household" means a person, a family, or
unrelated persons living together whose adjusted household income
is more than 25% but not more than 50% of the median income, as
determined by the authority.
Sec. 58a. (1) The Michigan housing and community development
fund is created in the department of treasury. The fund shall be
administered by the authority and shall be expended only as
provided in this chapter.
(2)
The state treasurer shall credit to the fund all of the
following:
appropriations from
restricted revenues.
(a)
All receipts, including, but not limited to, dividends and
interest
on the investment of money in the fund and principal and
interest
payments from loans or agreements made from the fund.
(b)
All proceeds of assets received by the authority as a
result
of the default of loans or agreements made under this
chapter.
(c)
All appropriations, grants, or gifts of money or property
made
to the fund.
(d)
All fees or charges collected by the authority pursuant to
activities
authorized under this chapter.
(e)
Other revenue as provided by law.
(3) All balances in the fund at the end of a fiscal year shall
be carried over as a part of the fund and shall not revert to the
general fund of the state.
Sec. 58b. (1) The authority shall create and implement the
Michigan housing and community development program for the purpose
of developing and coordinating public and private resources to meet
the affordable housing needs of low income, very low income, and
extremely low income households and to revitalize downtown areas in
this state.
(2) The authority shall identify, select, and make financing
available to eligible applicants from money in the fund or from
money secured by the fund for affordable housing for low income,
very low income, and extremely low income households and to
revitalize downtown areas. This subsection does not preclude the
authority from using other resources in conjunction with the fund
for a purpose authorized under this chapter.
(3) The authority shall promulgate rules according to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, providing for the terms and conditions under which
assistance made under this chapter shall be recaptured.
(4) The authority shall develop an annual plan providing for
the allocation of money from the fund, according to all of the
following:
(a) The allocation plan shall contain a formula for
distributing money throughout the state based on the number of
persons experiencing poverty and housing distress in various
regions of the state.
(b) The allocation plan shall identify eligible applicants,
preference for special population groups described in section
58c(2), and preference for geographic targeting in designated
revitalization areas including, but not limited to, neighborhood
preservation areas, state renaissance zones, core communities, and
federally-designated enterprise community or homeownership zones.
(c) Not less than 25% of the fund shall be earmarked for
rental housing projects that do not qualify under preferences for
special population groups, geographic preferences, or other
preferences contained in the allocation plan.
(d) Not less than 30% of the fund shall be earmarked for
projects that target extremely low income households and include at
a minimum both of the following activities:
(i) Developing housing for the homeless, supportive housing,
transitional housing, and permanent housing.
(ii) Providing security deposits ,
supportive services, and
technical assistance to eligible applicants.
(e) A rental housing project assisted by the fund must provide
affordable housing for households earning no more than 60% of the
median income.
(f) A home ownership project assisted by the fund must provide
affordable housing for households earning no more than 60% of the
median income.
(g) Money that has not been committed at the end of a fiscal
year shall not be carried over in the category to which the money
had been allocated during that fiscal year, but shall be
reallocated for the next fiscal year according to the next fiscal
year's allocation plan.
(5) Each year, the authority shall hold public hearings in at
least 3 separate locations throughout this state on the priorities
and draft allocation plan for the upcoming year. After the public
hearings, the authority may make minor modifications to the
allocation plan necessary to facilitate the administration of the
Michigan housing and community development program or to address
unforeseen circumstances.
(6) The authority shall issue an annual report to the governor
and the legislature summarizing the expenditures of the fund for
the prior fiscal year including at a minimum a description of the
eligible applicants that received funding, the number of housing
units that were produced, and the income levels of the households
that were served.
(7) In addition to the rules promulgated under subsection (3),
the authority shall promulgate rules according to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, to implement this chapter.
Sec. 58c. (1) The authority shall expend money in the fund to
make grants, mortgage loans, or other loans to eligible applicants
as provided in this section to enable eligible applicants to
finance any of the following with respect to housing or home
ownership for low income, very low income, and extremely low income
households and with respect to revitalizing downtown areas:
(a) Acquisition of land and buildings.
(b) Rehabilitation.
(c) New construction.
(d) Development and predevelopment costs.
(e) Preservation of existing housing.
(f) Infrastructure improvements, economic development
projects,
or community facilities. that support housing
development.
(g) Insurance.
(h) Operating and replacement reserves.
(i) Down payment assistance.
(j) Security deposit assistance.
(k)
Supportive services.
(2) The authority shall expend a portion of the fund for
housing for special needs populations including, but not limited
to, the homeless, persons with physical or mental handicaps, and
persons living in rural or distressed areas.
(3) The authority may make a loan to an eligible applicant
from the fund at no interest or at below market interest rates,
with or without security, and may make a loan for predevelopment
financing.
(4) The authority may provide assistance for housing units for
very low income or extremely low income households within
multifamily housing that is occupied partly by very low income or
extremely low income households and partly by households that do
not qualify as very low income or extremely low income households,
subject to the rules promulgated by the authority.
(5) The authority may provide funding for projects with 50
units or less and provide incentives to encourage project
feasibility and mixed income housing projects that respond to
community priorities.