SENATE BILL No. 347

 

 

May 1, 2013, Introduced by Senators JANSEN, KOWALL and SMITH and referred to the Committee on Economic Development.

 

 

 

     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 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

 

or greater than the return the authority is then receiving on

 

investments authorized under section 22(n).

 

     (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, profit

 

and nonprofit corporations, and other entities.

 

     (b) The conditions under which the entities described in

 

subdivision (a) may acquire ownership interests in or make 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.