HB 4539

substitute for
House BILL NO. 4539
A bill to amend 1966 PA 346, entitled
"State housing development authority act of
1966,"
by amending sections 58 and 58b (MCL 125.1458 and
125.1458b), section 58 as amended by 2008 PA 216 and section 58b as amended by
2008 PA 244.
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) "Adjacent neighborhood" means a residential
area as determined by the authority immediately adjoining or near a downtown
area within the same municipality.
(a) (b) "Adjusted
household income" means that term as defined in rules of the authority.
(b) (c) "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
a majority of the buildings are built adjacent to each other as determined by
the authority and up to the public right-of-way. In order to be a downtown
area, the area shall must contain a significant number of multilevel,
mixed use buildings, and property in the
downtown area must be owned by more than 3 private owners.
(c) (d) "Eligible
applicant" means a not-for-profit corporation, a for-profit corporation, a
municipality, a land bank fast track authority organized under the land bank
fast track act, 2003 PA 258, MCL 124.751 to 124.774, 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, low-income, very
low income, or low-income,
extremely low incomelow-income, or middle-income households or projects
located in a downtown area or adjacent
neighborhood.this state.
(d) (e) "Extremely low income household" "Extremely
low-income household" means a person, an individual, a family, or unrelated persons individuals living
together whose adjusted household income is not more than 30% of the area
median income, as determined by the authority.
(e) (f) "Fund"
means the Michigan housing and community development fund created in section
58a.
(f) (g) "Low income household" "Low-income household"
means a person, an individual, a
family, or unrelated persons individuals living together whose adjusted household
income is more than 50% but not more than 60% of the area median income, as
determined by the authority.
(g) "Middle-income household" means an individual, a family,
or unrelated individuals living together whose adjusted household income is not
more than 120% of the area median income, as determined by the authority.
(h) "Mixed
use buildings" means buildings that can be used for more than 1 purpose,
and in any combination, including, but not limited to, residential housing
combined with either commercial or retail space.
(i) "Multifamily
housing" means a building or buildings providing housing to 2 or more
households, none of which is owner occupied.
(j) "Project"
means those activities defined under section 58c.
(k) "Supportive
housing" means a rental housing project in which some or all of the units
are targeted to people with household incomes at or below 30% of area median
income and that provide services, either directly or contracted for, to those
people that include, but are not limited to, mental health, substance abuse
services, counseling services, and daily living services.
(l) "Very low
income household" "Very low-income household" means a
person, an individual, a family, or
unrelated persons individuals
living together whose adjusted household income is not more than 50% of
the area median income, as determined by the authority.
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
housing needs of low income, low-income, very low
income, and low-income, extremely low incomelow-income, or
middle-income households and to finance projects located in a downtown area or adjacent neighborhood 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 housing for low income, low-income, very
low income, and low-income,
extremely low incomelow-income, or middle-income households and for
projects located in a downtown area or adjacent
neighborhood. this state. 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 develop a biennial allocation plan providing for the allocation of money
from the fund, according to all of the following:
(a) The allocation
plan shall must contain
a formula for distributing money throughout the this state based on the number of persons
experiencing poverty, economic, and housing distress,
the number of persons with disabilities, and the number of accessible housing units in various regions
of the this state.
(b) The allocation plan shall include a preference for
special population groups described in section 58c(2).
(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 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
developing housing for the homeless, supportive housing, transitional housing,
and permanent housing.
(e) A rental housing project assisted by the fund must set
aside at least 20% of the rental units included in the project for households
earning no more than 60% of the area median income.
(f) A home ownership project assisted by the fund must set
aside at least 20% of the housing units in the project for households earning
no more than 60% of the area median income.
(b) The allocation plan must consider the availability and adequacy of
funds from other sources to address the housing needs of persons with
disabilities and low-income, very low-income, extremely low-income, or
middle-income households.
(c) (g) Money
that has not been committed at the end of a fiscal year shall must not be
carried over in the category to which the money had been allocated during that
fiscal year, but shall must be reallocated for the next fiscal year
according to the next fiscal year's allocation plan.
(4) (5) Prior to Before developing the biennial allocation plan,
the authority shall hold public hearings in at least 3 separate locations in
this state regarding the content of the biennial allocation plan. The authority must provide an option for virtual
participation by members of the public in all public meetings and employ
additional methods to gather public comment. The alternative methods must focus
on engagement with persons with disabilities, people with limited English
proficiency, and people from low-income, very low-income, extremely low-income,
or middle-income households. The authority may make modifications to the
allocation plan necessary to facilitate the administration of the Michigan
housing and community development program or to address unforeseen
circumstances.
(5) (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, the income levels of the households
that were served, and the number of homeless
persons served. ,
and the number of downtown areas and adjacent neighborhoods that receive
financing.The authority shall make the annual
report required under this subsection available to the public on the
authority's internet website.
(6) (7) The
authority may promulgate rules under the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328, to implement this chapter.
Enacting section 1.
This amendatory act does not take effect unless all of the following bills of
the 103rd Legislature are enacted into law:
(a) House Bill No. 4540.
(b) House Bill No. 5101.