INCENTIVES FOR AFFORDABLE HOUSING                                                  S.B. 110 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 110 (Substitute S-1 as reported)

Sponsor:  Senator Wayne Schmidt

Committee:  Local Government

CONTENT

The bill would amend Public Act 226 of 1988, which limits the powers of local governmental units regarding the lease of private residential property, to specify that a prohibition against a local governmental unit's controlling the amount of rent charged for leasing private residential property would not limit the power of the local unit to implement a plan to use voluntary incentives and agreements to increase the supply of moderate- or low-cost private residential property available for lease.

Specifically, the Act prohibits a local governmental unit from enacting, maintaining, or enforcing an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential property. The prohibition does not impair the right of a local unit to manage and control residential property in which it has a property interest.

Under the bill, the prohibition also would not limit the power of a local governmental unit to adopt an ordinance or resolution to implement a plan designed to use voluntary incentives and agreements to increase the supply of moderate- or low-cost private residential property available for lease.

MCL 123.411                                                           Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

A local government that chose to offer incentives for development of low- or moderate-income housing pursuant to the authority in the bill would incur additional costs or forego local revenue in order to fund the incentive. The amount of the local fiscal impact would depend on local decisions to implement a low- or moderate-income housing incentive program and the type and scope of the specific incentives offered. The bill would have no fiscal impact on the State.

Date Completed:  2-14-18                                                    Fiscal Analyst:  Ryan Bergan

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.