SB-0347, As Passed Senate, September 17, 2013

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 347

(as amended September, 12, 2013)

     A bill to amend 1966 PA 346, entitled

"State housing development authority act of 1966,"

(MCL 125.1401 to 125.1499c) by adding section 22d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 22d. (1) In addition to the powers described in section

22(n), the authority may, in its discretion, invest money held in

reserve or sinking funds, or money not required for immediate use

or disbursement, in entities, including limited partnerships and

limited liability companies, whose primary purpose is, directly or

indirectly, to acquire ownership interests in multifamily housing

projects in this state or to make [or purchase] loans with respect to

such

projects, or both. The authority shall not make an investment

authorized by this subsection unless the authority determines that

the return on the investment is reasonably expected to be equal to

Senate Bill No. 347 (H-1) as amended June 18, 2013

                          as amended September 12, 2013

or greater than the return the authority is then receiving on

investments authorized under section 22(n). The authority shall use

earnings returned to the authority on investments authorized by

this subsection solely for purposes authorized by this act. The

authority shall allocate not less than 10% of the earnings returned

to the authority on investments authorized by this subsection to

the housing [development fund created in section 23.]

     (2) The authority shall possess all powers necessary or

incidental to make the investments authorized in subsection (1),

including, but not limited to, the power to establish any of the

following:

     (a) Limited partnerships, limited liability companies,

nonprofit corporations, and other entities.

     (b) The conditions under which the entities described in

subdivision (a) may acquire ownership interests in or make [or purchase]

loans

with respect to multifamily housing projects as provided in

subsection (1).

     (3) As used in this section, "multifamily housing project"

means a housing project that includes multiple dwellings and in

which a minimum of 50% of the square footage of floor space is used

primarily for residential purposes.