DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

STATE HOUSING DEVELOPMENT AUTHORITY

GENERAL RULES

Filed with the secretary of state on
 
These rules take effectbecome effective immediately upon after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a.  Rules adopted under these sections become effective 7 days after filing with the secretary of state.
 

(By authority conferred on the state housing development authority by sections 15a,

22, and 58b of the state housing development authority act of 1966, 1966 PA 346, MCL

125.1415a, 125.1422, and 125.1458b)

R 125.103, R 125.111, R 125.122, R 125.132, R 125.133, R 125.142, R 125.143, R 125.146, R 125.152, R 125.153, R 125.171,  R 125.181, R 125.182, R 125.190, R 125.191, R 125.192, R 125.193, R 125.194, R 125.195, R 125.196, R 125.197, R 125.198, R 125.199, R 125.203, R 125.204, R 125.211, R 125.212, R 125.214, R 125.215, R 125.216,  R. 125.218, R 125.219, R 125.220, and R 125.222 of the Michigan Administrative Code are amended, and R 125.225 and R 125.227 are added, as follows:

PART I. GENERAL PROVISIONS

R 125.103  Definitions; H to S.  

 Rule 103. As used in these rules:  

 (a) "Household" means an individual or family residing or intending to reside in a single-dwelling unit.

 (b) “HUD” means the United States Department of Housing and Urban Development, the federal department responsible for the major housing programs in the United States.

 (bc) "Local community" means any of the following entities whichthat presents evidence that it is acting in a manner consistent with the objectives of the act with respect to the provision of housing or community development:  

  (i) A public body or agency.  

  (ii) A quasi-governmental body approved by the authority and established by state or federal law, the governing board of which is elected by the residents of a definite geographical area.  

  (iii) A park or playground association established pursuant to the provisions of  

1911 PA 161, MCL 455.301 to 455.313.  

  (iv) A nonprofit corporation, limited dividend housing corporation, or limited dividend housing association.  

 (cd) "Low-income persons individuals and families" means, for purposes of as used in section 15a of the act, MCL 125.1415a, any of the following:  

  (i) Any personindividual or family whose household income, at the time of initial occupancy of a unit in the housing project, does not exceed 80% of the area median income, adjusted for family size, as published by the United States Department of Housing and Urban Development HUD.  

  (ii) Any personindividual or family whose household income does not exceed the limits established pursuant to of an ordinance enacted by the municipality in whichwhere the housing project is located, on the basis ofbased on conditions existing in that municipality such as affordable housing needs, variations in construction costs, and fair market rents.  

  (iii) For purposes of sectionAs used in 15a of the act, MCL 125.1415a, only, provided that at least not less than 30% of the units in the housing project are income- and rent-restricted to 80% or less of the area median income, the household income of all persons individuals and families occupying units in the housing that are not income- and rent-restricted to 80% or less of the area median income iswill be imputed to be 80% of the area median income, adjusted for family size, as published by the United States Department of Housing and Urban Development HUD.  

  (iv) Except as provided in paragraph (ii) of this subdivision, this definition of low- income personsindividuals and families applies to all housing projects that are now or become eligible for the exemption under section 15a of the act, MCL 125.1415a.  

 (de) "Minor" means a member of a household, other than the household head or spouse, who is under 18 years of age or who is under 19.5 years of age and a full-time high school or high-school alternative program student.  

 (ef) "Mortgage loan" means a loan that is authorized by resolution of the authority or by a mortgage loan commitment issued on behalf of the authority and is made to an applicant for a housing project or a housing unit from the proceeds of the sale of the authority's bonds or notes and any other available funds for the purpose of providing construction financing or long-term financing, or both, the repayment of which is secured, or is to be secured, as provided in the act.  

 (fg) "Permanent general improvements" means alterations, repairs, and improvements on or in connection with an existing residential structure that substantially protects or improves the basic livability or energy efficiency of the residential structure to be improved. Permanent general improvements do not include materials, fixtures, or landscaping of a type or quality exceeding that customarily used in the locality for residential structures of the same general type as the structure to be improved.  

 (gh) "Person or persons Individual or individuals with disabilities" means a personan individual who has a disability that is a physical or mental impairment that substantially limits 1 or more major life activities, has a record of suchthe impairment, or meets the definition of having a disability under any federal, state, or local program for the disabled.  

 (hi) "Person or personsIndividual or individuals with special needs" means a personan individual with physical disabilities, mental illness, substance abuse, or an addiction, or who is homeless, and who may need supportive services to succeed.  

 (ij) "Property improvement loan" means a loan that is authorized by the authority for home improvements that protects or improves the basic livability of a single-family or manufactured home.  

 (jk) "Residential structure" means real property that is improved by a structure, and the structure is used primarily for residential purposes on a year-round basis. Residential structure does not include a mobile home or a trailer.  

 (kl) "Sponsor" means an individual, group, or organization that stimulates or promotes an applicant, and continues to be interested in the activities of the applicant with respect to a housing project.  

R 125.111 Hearings.  

Rule 111. (1) To inform itself and the public the authority, through its members or its staff, may hold public hearings anywhere in thethis state and may limit the scope of the hearings.  

(2) An individual, firm, corporation, partnership, or public body or agency, aggrieved by a decision of the authority or the authority’s executive director, or authorized officer issuing a final decision of the authority, may request in writing that the authority hold a hearing in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.  Hearings on matters related to participation in the HUD housing choice voucher programs administered by the authority may be requested and held in accordance with 24 CFR parts 982 and 983, as applicable, and in accordance with the authority’s housing choice voucher administrative plan.

(3) Except for hearing and appeal procedures provided by statute or rule, a request for a hearing under subrule (2) of this rule must be received by the authority’s director of  legal affairs chief legal affairs officer within 60 days after the issuance of the decision.  

PART 2. APPLICATIONS AND APPLICANT ELIGIBILITY

R 125.122 Eligible applicants.  

Rule 122. (1) A development fund loan, mortgage loan, or part of a development fund loan or mortgage loan, must not be made or disbursed to an applicant until the applicant is an eligible applicant.  

(2) An eligible applicant is an applicant authorized by the act to receive a development fund loan or a mortgage loan. To become an eligible applicant, an applicant shall obtain the authority’s staff’s approval of its organizational documents, where applicable, as provided in the act.

PART 3. DEVELOPMENT FUND LOANS AND FEASIBLE PROJECTS

R 125.132  Processing and evaluation of applications.  

Rule 132. (1) An application for a development fund loan or a determination that a proposed housing project is a feasible housing project, or both, must be processed by the authority staff on the basis ofbased on processing and underwriting procedures and guidelines developed by the authority staff under direction of the executive director on behalf of the authority.  

(2) An applicant may be required to furnish to the authority staff supplementary information and to amend the application to cause so that the proposed housing project to beis consistent with the authority’s processing and under-writing procedures and guidelines.  

(3) Upon completion of the processing, all applications for a determination that a proposed housing project is feasible and all applications for development fund loans in the principal amount of $250,000 $350,000 or more, must be presented to the authority for approval, along with the authority staff’s analysis of the application and the executive director’s recommendation with respect to the application, subject to the terms, conditions, and requirements deemed determined necessary by the authority, in accordance with R 125.133.  

(4) If the principal amount of the development fund loan is less than $250,000.00 $350,000, the executive director shall review the authority staff’s analysis and determine whether all  

of the following requirements are met:  

 (a) The applicant is an applicant authorized by the act to receive a development fund loan.  

 (b) The applicant shall use the loan funds in planning for or implementing any activities permittedallowed in the act.  

 (c) The applicant is reasonably expected to be able to successfully implement the proposal.  

 (d) The authority staff reasonably anticipates that the applicant will receive an authority-aided or a federally-aided mortgage loan, to be obtained to provide financing for the proposed housing project.  

 (e) The development fund loan can reasonably be anticipated to be repaid from the proceeds of the authority-aided or a federally-aided mortgage loan. If the requirements in this subrule are met, the executive director may issue, on behalf of the authority, a commitment for a development fund loan to the applicant. The development fund loan commitment must contain terms, conditions, and requirements as deemeddetermined necessary by the executive director.  

R 125.133 Determinations of feasibility and authorization of loans.  

Rule 133. (1) The authority shall review the analysis and recommendation for applications for a determination that a proposed housing project is feasible and applications for development fund loans in the principal amount of $250,000 $350,000 or more, and, if it the authority determines that the application meets the requirements of the act and these rules and is consistent with the authority’s processing and under-writing procedures and guidelines, by resolution, the authority may determine that the proposed housing project is a feasible housing project or authorize a development fund loan to the applicant, or both.  

(2) For applications for a determination that a proposed housing project is feasible, the resolution must include all of the following determinations by the authority:  

 (a) The proposed housing project will provides housing for personsindividuals of low- and moderate-income or will serves and improves the residential area in which where authority- financed housing is located or is planned to be located thereby enhancing that enhances the viability of such the housing.  

 (b) The applicant is reasonably expected to be able to achieve successful completion of the proposed housing project.  

 (c) The proposed housing project will meets a social need in the area where it will be located.  

 (d) A mortgage loan, or a mortgage loan not made by the authority that is a federally-aided mortgage, can reasonably be anticipated to be obtained to provide financing for the proposed housing project.  

 (e) The proposed housing project is a feasible housing project.  

(3) For applications for development fund loans in the principal amount of $250,000 $350,000 or more, the resolution must include the following determinations by the authority:  

 (a) The applicant is an applicant authorized by the act to receive a development fund loan.  

 (b) The applicant shall use the loan funds in planning for or implementing any activities permittedallowed in the act.  

 (c) The applicant is reasonably expected to be able to successfully implement the proposal.  

 (d) The authority staff reasonably anticipates that the applicant will receive an authority- aided or a federally-aided mortgage loan, to be obtained tothat provides financing for the proposed housing project.  

 (e) The development fund loan can reasonably be anticipated to be repaid from the proceeds of the authority-aided or a federally-aided mortgage loan.  

(4) The resolution may include conditions that the authority considers appropriate with respect to an application for a mortgage loan as to the feasible housing project or the use, disbursement, and repayment of the development fund loan.  

PART 4. MORTGAGE LOANS

R 125.142 Processing and evaluation of applications.  

Rule 142. (1) An application for a mortgage loan must be processed by the authority staff on the basis ofbased on the authority's processing and underwriting procedures and guidelines. The authority staff shall undertake and require applicants to obtain and submit land appraisals, market surveys and analyses, reviews of the architectural design, a site plan, and construction costs, materials and methods, and other matters as may be determined to be appropriate to ensure that the proposed housing project is consistent with the authority's processing and underwriting  

procedures and guidelines.  

(2) An applicant may be required to furnish the authority staff with supplementary information and to amend the application to causeso that the proposed housing project to beis consistent with the authority's processing and underwriting procedures and guidelines.  

(3) Except as provided for in R 125.143(3), upon completion of the processing and approval of the application by the executive director, the authority staff's analysis of the application and the executive director's recommendation shall be presented to the authority.

R 125.143 Authorization of mortgage loans.  

Rule 143. (1) The authority shall review each analysis and recommendation and, if it the authority determines that the application meets the requirements of the act and these rules and is consistent with the authority's processing and underwriting procedures and guidelines, by resolution, it may authorize a mortgage loan to the applicant. The resolution may authorize the executive director to issue a separate authority mortgage loan commitment to the applicant with respect to the proposed housing project.  

(2) The resolution must include all of the following authority determinations:  

 (a) The applicant is an eligible applicant.  

 (b) The proposed housing project will  provides housing for personsindividuals of low- and moderate-income or willserves and improves the residential area in whichwhere authority- financed housing is located or is planned to be located, thereby enhancing that enhances the viability of the housing. In the case of a loan being made pursuant to section 44a(2) of the act, MCL 125.1444a, the loan may be made without regard to the income of the owner or occupants if the housing project is located in an area of chronic economic distress, as that term is defined in section 11 of the act, MCL 125.1411, or if the housing project constitutes moderate cost residential rental property located elsewhere in thethis state.  

 (c) The applicant is reasonably expected to be able to achieve successful completion  

of the proposed housing project.  

 (d) The proposed housing project will meets a social need in the area in whichwhere it is to will be located.  

 (e) The proposed housing project may reasonably be expected to be marketed  

successfully.  

 (f) All elements of the proposed housing project, including, without limitation, the ownership, design, construction, occupancy, management, and operation thereof, have been are established in a manner consistent with the authority's processing and underwriting procedures and guidelines, except as to any such elements asthat are the subject of conditions as to the authorization of the mortgage loan as provided in R 125.144.  

 (g) In light of the estimated project cost of the proposed housing project, the amount of the mortgage loan authorized by a resolution is consistent with the requirements of the act as to the maximum limitation on the ratio of mortgage loan amount to estimated project cost.  

(3) If the principal amount of the mortgage loan is less than $250,000.00 $350,000, the  

executive director shall may review the authority staff's analysis and, if the executive director  

determines that the applicant is an eligible applicant, that the application meets the requirements of the act and these rules, and that the application is consistent with the authority's processing and underwriting procedures and guidelines as to the proposed housing project, the executive director may issue, on behalf of the authority and pursuant to resolution of the authority, the authority's mortgage loan commitment to the applicant with respect to the proposed housing project. The mortgage loan commitment must contain terms, conditions, and requirements as deemeddetermined necessary by the executive director.

R 125.146  Single Family mortgage loans.  

Rule 146. (1) An application by an individual for a mortgage loan for long-term financing of a housing unit, which for purposes of this rule may include owner-occupied new housing units, existing housing units to be substantially rehabilitated, condominiums, or mobile homes permanently affixed to land and considered real property, to be purchased by the individual, must include information, and whereif required by the authority staff, supporting materials and evidence with respect to allboth of the following:  

 (a) The eligibility of the applicant.  

 (b) The eligibility of the housing unit proposed to be purchased.  

(2) An application for a mortgage loan, submitted pursuant to subrule (1) of this rule, must be processed by authority staff and may be approved by an authorized officer.  

(3) The authorized homeownership staff shall review each analysis application and, if he or she the authorized homeownership staff determines that the applicant is an eligible applicant, that the application meets the requirements of the act and these rules, and that the application is consistent with the authority's processing and underwriting procedures and guidelines as to the housing unit to be purchased, then the authorized officer may issue, on behalf of the authority and pursuant to resolution of the authority, the authority's mortgage loan commitment to the originating lender with respect to the housing unit proposed to be purchased. The mortgage loan commitment must contain terms, conditions, and requirements as deemeddetermined necessary by an authorized officer, including, without limitation, conditions establishing that the purchase price of the subject housing unit, the method of making payments after the purchase of the housing unit, the security afforded, the interest rate, and fees and charges, if any, to be paid by the eligible applicant must at all times be sufficient to permitallow the authority to make the payments on its bonds and notes plus any administrative or other costs to the authority in connection with the transaction.  

(4) The authority, by resolution, may authorize the execution, on behalf of the authority, of agreements with corporations, partnerships, individuals, financial institutions, or other entities qualified to do business within this state. The agreements may provide that the authority shall make mortgage loans to eligible applicants for the long-term financing of housing units to be purchased by eligible applicants. , and that the housing units must be constructed by or with the assistance of an entity that is a party to the agreement.

(5) An individual shall not receive a mortgage loan for long-term financing to purchase a housing unit to be purchased that is not intended for owner occupancy.  

(6) Where If an individual is a qualifying applicant, only the qualifying applicant will beis required to sign the mortgage note and any other loan documents determined by an authorized officer to be necessary, and only the qualifying applicant will beis subject to credit qualification. If married, both the qualifying applicant and the applicant’s spouse must be identified in the deed or other conveyance document, and both mustshall execute the mortgage securing the property, to the extent required by state law and title industry practice. The income of all other non-qualified-applicant adult individuals who are to reside in the home will beis considered for determining eligibility of the household for program qualification and loan terms. Those non-qualified-applicant individuals will beare required to attest to their incomes, and those incomes will beare included in determining the household gross income; non-qualified-applicant individuals will not beare not required to sign mortgage loan documents.  

(7) An individual shall not receive a mortgage loan for the long-term financing of a housing unit unless the individual meets the credit requirements as established by the authority.  

(8) For purposes of this rule, housing unit or units may include owner-occupied new housing units, existing housing units to be substantially rehabilitated, condominiums, or mobile homes.

PART 5. DEVELOPMENT FUND GRANTS

R 125.152 Processing and evaluation of applications.  

Rule 152. (1) An application for a development fund grant must be processed by the authority staff on the basis ofbased on the authority's evaluation factors.  

(2) An applicant may be required to furnish to the authority staff supplementary information and to amend the application to causeso that the planned activities to be are fully consistent with the authority's evaluation factors.  

(3) Upon completion of the processing, all applications for development fund grants in the amount of $250,000 $350,000 or more must be presented to the authority for approval, along with the authority staff’s analysis of the application and the executive director's recommendation with respect to the application subject to suchthe terms, conditions, and requirements deemeddetermined necessary by the authority.  

(4) If the amount of the development fund grant is less than $250,000.00 $350,000, the executive director shall review the authority staff’s analysis and determine whether all of the following requirements are met:  

 (a) The applicant is authorized by the act to receive a development fund grant.  

 (b) The applicant will use the grant funds in planning for or implementing any activities permittedallowed in the act.  

 (c) The applicant is reasonably expected to be able to successfully implement the proposal.  

 (d) The application satisfies the evaluation factors and criteria adopted by the authority.  

  (5) If the requirements of this subrule are met, the executive director may issue, on behalf of the authority, a commitment for a development fund grant to the applicant. The development fund grant commitment must contain terms, conditions, and requirements as deemeddetermined necessary by the executive director. The authority may require repayment of these grants.

R 125.153 Authorization of development fund grants in the amount of $250,000 $350,000 or more.  

Rule 153. (1) For applications for development fund grants in the amount of $250,000 $350,000 or more, the authority shall review each analysis and recommendation presented and, if it determines that the application meets the requirements of the act and these rules and is consistent with the authority's evaluation factors, by resolution, it may authorize a development fund grant to the applicant in an amount not to exceed the net costs to the applicant of the planned activities.   (2) The resolution of the authority must include all of the following determinations by the authority:  

 (a) The applicant is authorized by the act to receive a development fund grant.  

 (b) The applicant will use grant funds in planning for or implementing any activities permittedallowed in the act.  

 (c) The applicant is reasonably expected to be able to successfully implement the proposal.  

 (d) The application satisfies the evaluation factors and criteria adopted by the authority.  

(3) The resolution may include conditions whichthat the authority considers appropriate with respect to the use and disbursement of the development fund grant. The authority may require repayment of these grants.  

PART 7. LAND ACQUISITION AND DEVELOPMENT

R 125.171  Land acquisition and development proposals.  

  Rule 171. (1) The authority staff may develop proposals for the use of money in the land acquisition and development fund created by the act. A proposal may be for the following:  

   (a) The acquisition by grant, purchase, or otherwise of real property, which for purposes of this part is defined as any interest, including a fee and leasehold interest, in land or improvements to land, or a portion thereof, by the authority in its own name or through and in the name of an agent, under any of the following circumstances:  

    (i) The real property may be suitable for a future housing development or housing project.  

    (ii) The real property is located in a residential area where the authority has financed or has planned to finance housing, and the proposed use of the real property improves the quality of the residential area by eliminating blight or provides needed public or commercial facilities.  

    (iii) The real property is so situated that the present or future use of the real property, if not acquired by the authority, adversely affects the value or marketability of the authority-financed housing project.  

   (b) Any of the following types of improvements to real property purchased or otherwise acquired for the purposes of the fund:  

    (i) Improvements that are necessary to place the real property in a safe, sanitary, and decent condition, including demolition, excavation, and landscaping.  

    (ii) Improvements to real property that is to be dedicated for the public use and enjoyment, including the installation of recreational facilities, benches, shelters, lighting, and walkways.  

    (iii) Improvements that are necessary to ensure the planned development of the real property, including the installation of roads, sidewalks, sewers, and utilities.  

   (c) The payment of any of the following costs on real property purchased or being purchased with money from this fund or acquired by gift, grant, or exchange for the purposes of this fund:  

    (i) The costs of property taxes, insurance premiums, interest, maintenance expenses, and other carrying charges on real property. Notwithstanding the provisions of section 42 of the act, MCL 125.1442, during the period when real property is owned or is being purchased by the authority or its the authority’s agent, the authority shall pay all property taxes levied against the real property unless a taxing jurisdiction exempts the real property from property taxes. The assessed valuation of the real property while it is owned or being purchased by the authority or its the authority’s agent may not be increased by any taxing jurisdiction, except to reflect the state equalization valuation process.  

    (ii) The costs of planning the development of the real property, including, but not limited to, the costs of economic feasibility studies, land use studies, site development planning, architectural and engineering design, market analysis and all related analyses, studies, and planning services.  

    (iii) The costs incurred in the transfer of real property, including brokerage and appraisal fees, recording expenses, and the costs of surveys and title insurance.  

 (d) The costs of improvements to real property permitted allowed by section 24b(2) of the act, MCL 125.1424b.  

  (2) A proposal must contain information as to the description and fair market value of any real property or interest therein proposed to be acquired and the proposed method of acquisition thereof, the nature and cost of any improvements proposed to be undertaken or carrying charges or transfer expenses proposed to be paid, and the nature and cost of any planning of the development of real property proposed to be undertaken. A proposal, upon completion, and the executive director's recommendation with respect thereto, shall must be presented to the authority.  

PART 8. HOME IMPROVEMENT LOANS

R 125.181  Eligible applicants.  

  Rule 181. An applicant for a property improvement loan shall satisfy all of the following requirements:  

  (a) An applicant shall be an individual fee owner of the residential structure to be improved or an individual member-shareholder in a nonprofit cooperative housing corporation who has a proprietary interest in a residential structure. The residential structure may be subject to a mortgage or other lien securing a debt.  

  (b) An applicant shall meet the credit requirements as established by the authority.  

  (c) The residential structure to be improved must not be in violation of applicable zoning ordinances or other applicable land use guidelines.  

  (d) The residential structure may not contain more than 24 dwelling units.  

  (e) The applicant shall use property improvement loan proceeds to finance only new improvements upon, or in connection with, existing structures and shall may not use the property loan proceeds to refinance an existing mortgage or debt, or to complete an unfinished residential structure.  

  (f) All improvements must be reasonably capable of being completed, except for causes beyond the applicant's reasonable control, within 6 months after of the date of the first disbursement of funds pursuant to the property improvement loan. The authority’s executive director may extend this period for good cause shown.

R 125.182  Eligible improvements.  

  Rule 182. (1) Improvements made with property improvement loan proceeds must satisfy the following requirements:  

   (a) Improvements may be made in order to comply with applicable state, county, and municipal health, housing, building, fire prevention and housing maintenance codes, or other public standards applicable to housing.  

   (b) Improvements may also be made that protect or improve the basic livability or utility of a residential structure and make the residential structure safe, sanitary, or adequate. However, to be an eligible improvement, it must be a permanent general improvement.  

   (c) An improvement must be made in compliance with all applicable health, fire prevention, building, housing, and housing maintenance codes, and other public standards applicable to housing. However, no application for a property improvement loan for a dwelling unit occupied by the owner may be denied solely because the improvements will not bring the dwelling unit into full compliance with all applicable codes and standards.  

   (d) Property improvement loans proceeds may not be used for the payment, wholly or in part, of an assessment for public improvements. However, proceeds may be used for improvements that will brings an individual sewage disposal system, including septic systems, located on the residential real property improved by a residential structure into compliance with local, state, and federal environmental and sanitary standards.  

   (e) The authority may require that all contracts covering all or any portion of an improvement contain an authority-approved warranty on workmanship and materials.  

  (2) All rehabilitation contracts under this part must be between the homeowner and the contractor. The authority shall not negotiate or enter into rehabilitation contracts under this part.

PART 9. MICHIGAN HOUSING AND COMMUNITY DEVELOPMENT

FUND;  MICHIGAN HOUSING AND COMMUNITY DEVELOPMENT PROGRAM

R 125.190  Program purpose and applicability.  

  Rule 190. The authority shall use the Michigan housing and community development fund created in section 58a of the act, MCL 125.1458a, to provide loans, grants, or other comparable forms of assistance to eligible applicants to finance, acquire, rehabilitate, and develop decent, safe, and sanitary housing and projects to meet the housing needs of low-income, very low income, and extremely low-income households, and households located in a downtown area or adjacent neighborhood in this state. The use of the Michigan housing and community development fund is limited to activities outlined in sections 58b and 58c of the act, MCL 125.1458b and 125.1458c, as follows:  

   (a) Developing and coordinating public and private resources to meet the housing needs of low-income, very low-income, and extremely low-income households in this state, particularly innovative strategies leveraging public and private resources to meet these needs.  

   (b) Developing housing in downtown areas and adjacent neighborhoods.

   (b c) Developing housing for the homeless, including both transitional housing and permanent housing.  

   (c d) Developing rental housing.  

   (d e) Providing funding to eligible applicants with respect to housing or homeownership for individuals and families of low-income, very low-income, and extremely low-income households and projects located in a downtown area or adjacent neighborhood in this state, including funding for all of the following:  

    (i) Acquisition of land and buildings.  

    (ii) Rehabilitation.  

    (iii) New construction.  

    (iv) Development costs and predevelopment costs.  

    (v) Preservation of existing housing.  

    (vi) Community development projects, including, but not limited to, infrastructure  

improvements, economic development projects, blight elimination, or community  

facilities.  

    (vii) Insurance.  

    (viii) Operating and replacement reserves.  

    (ix) Down payment assistance.  

    (x) Security deposit assistance.  

    (xi) Foreclosure prevention and assistance.  

    (xii) Individual development accounts established under the individual or family  

development account program act, 2006 PA 513, MCL 206.901 to 206.911.  

    (xiii) Activities related to ending homelessness.  

    (xiv) Assistance to nonprofit organizations, municipalities, and land bank fast track  

authorities organized under the land bank fast track act, 2003 PA 258, MCL 124.751 to  

124.774.  

    (xv) Predatory lending prevention or relief.  

R 125.191  Definitions.  

  Rule 191. Definitions provided for in part 1 of the authority's rules, R 125.101 to R 125.103, apply to the provisions of this part, unless superseded in this rule as follows:  

   (a) "Allocation plan" means the plan referred to in and required by section 58b of the act, MCL 125.1458b(3).  

   (b) "Annual report" means the annual report required under section 58b of the act, MCL 125.1458b.  

   (c) "Applicant" means a person an individual who has submitted an application, proposal, or other documentation related to a request for an award of housing and community development fund money meeting the requirements contained in the applicable NOFA or RFP related to the applicable application year.  

   (d) "Biennial plan" means the allocation plan as that term is defined in subrule (a) of this rule.  

   (e) "Chief Executive Officer" or "CEO" means the senior manager or person individual acting within this capacity responsible for overseeing the activities of the entire company or organization. The CEO usually holds a position on the board of directors of the company or organization and may also hold the title of president.  

   (f) "Chief Financial Officer" or "CFO" means the company's or organization's top managerial and financial accountant and the individual in charge of the company's or organization's financial matters or the person acting within this capacity.  

   (f g) "Community development" means a process involving the conception, planning, and implementation of projects or activities that create improvements in, or reduce the extent of declines in, the living standards of people in a particular community.  

   (g h) "Controlling interest" means the holding by 1 person individual or group of individuals persons of a majority of the stock or other indicia of ownership of a business entity, giving the holder or holders a means of exercising control over the actions of the entity.  

  (h i) "Development costs" means the sum total of all costs incurred by eligible applicants for the purpose of developing and coordinating public and private resources to meet the housing needs of low-income, very low-income, and extremely low-income households or to finance projects, as that term is defined in section 58 of the act, MCL 125.1458, and projects located in a downtown or adjacent neighborhood in this state.  

   (i j) "Formula" means the standard procedure for distributing the Michigan housing and community development program funds throughout thisthe state based on the number of individuals persons experiencing poverty, economic, and housing distress as specified in section 58b of the act, MCL 125.1458b.  

(k) "For-profit corporation" means an entity that exists primarily to generate more income than it spends.  

   (j l) "Homelessness" means lacking a fixed, regular, and adequate nighttime residence with priority given to those living in any of the following:  

    (i) A publicly or privately operated shelter or transitional facility designed to provide temporary living accommodations.  

    (ii) A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for humans.  

    (iii) An institution that provides temporary residence for individuals intended to be institutionalized.  

   (k m) "Housing development" means single-family homes, rental developments, elderly developments, affordable assisted living developments, supportive housing developments, and any work or undertaking financed in whole or in part under this part for the primary purpose of acquiring, constructing, or rehabilitating housing for low-income, very low-income, or extremely low-income households in need of housing, and households located in downtown areas or adjacent neighborhoods. An undertaking may include any buildings, land, equipment, facilities, or other real or personal property that is necessary, convenient, or desirable in connection with a development, including, but not limited to, streets, sewers, utilities, parks, site preparation, landscaping, and other non-housing facilities determined to be necessary, convenient, or desirable.  

(n) "HUD" means the United States Department of Housing and Urban  Development, the federal department responsible for the major housing programs in the United States.  

   (o l ) "Lookback" means the process of reviewing an intended proposed distribution of Michigan housing and community development program funds in a program year to ensure compliance with the earmark requirements provided in the act and these rules.  

   (p m ) "Michigan housing and community development fund" means the fund created in section 58a of the act, MCL 125.1458a.  

(q ) "Michigan housing and community development program fund advisory committee" means the advisory committee created in section 58e of the act, MCL 125.1458e.

   (r n ) "Michigan housing and community development program" means the program created in section 58b of the act, MCL 125.1458b.  

   (s o ) "NOFA" means a notice of funding availability issued pursuant to this rule and the applicable statutory law governing the program.  

   (t ) "Not-for-profit corporation" means a public or private corporation that meets all of the following:  

    (i) Is organized under state or local laws.  

    (ii) Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual.  

    (iii) Has a current tax exemption ruling from the Internal Revenue Service (IRS) under section 501(c)(3), a charitable, nonprofit corporation, or section 501(c)(4), a community or civic organization, of the internal revenue code, 26 USC 501(c)(3) or 26 USC 501(c)(4), as evidenced by a certificate from the IRS that is dated 1986 or later. The exemption ruling must be effective on the date of the application and must continue to be effective throughout the length of any contract or grant agreements; or classification as a subordinate of a central organization non-profit under the internal revenue code, as evidenced by a current group exemption letter, dated 1986 or later from the IRS, that includes the applicant. The group exemption letter must specifically identify and list the applicant.  

 (iv) A private nonprofit organization's pending application for section 501(c)(3) or  

section 501(c)(4) of the internal revenue code, 26 USC 501(c)(3) or 26 USC 501(c)(4),  

status does not comply with the tax status requirement.  

   (u p ) "Predevelopment costs" means reimbursable costs, related to a specific eligible housing, downtown, or adjacent neighborhood project, that meet all of the following:  

    (i) Predevelopment project costs that are determined to be customary and reasonable by the authority, including, but not limited to, consulting fees, architectural fees, engineering fees, and costs related to the engagement of a development team, costs related to establishing site control, and costs related to title clearance.  

    (ii) Pre-construction project costs that are determined to be customary and reasonable by the authority, including, but not limited to, the costs of obtaining architectural plans and specifications, zoning approvals, engineering studies, and legal fees.  

    (iii) Predevelopment costs do not include general operational or administrative costs.  

   (v q ) "Program funds" means the money in the Michigan housing and community development fund.  

   (w r ) "Recipient" means an eligible applicant receiving funds or other assistance under the program. Recipient includes a subrecipient and any requirement applying to a recipient applies to a subrecipient.  

   (x s ) "Rental housing project" means a housing development consisting of 1 or more dwelling units that will be are rented to individuals or families meeting applicable occupancy and income requirements related to the nature of the housing unit or development.  

   (y t ) “Request for proposals” or "RFP" means an announcement of a willingness to consider proposals requesting the awarding of program funds for a particular use or uses related to the fund or program.  

   (z u ) "State" means this the state of Michigan and any state level component units thereof.

R 125.192  Program funds eligible uses.  

  Rule 192. (1) Michigan housing and community development program funds may be used for the following activities:  

   (a) Acquisition activities. Acquisition in whole or in part by the recipient, by purchase, long-term lease, donation, or otherwise, of real property, including air rights, water rights, rights-of-way, easements, and other interests therein, for any purpose authorized by the program.  

   (b) Rehabilitation, clearance, and remediation activities. Rehabilitation activities include clearance, demolition, and removal of buildings and improvements, movement of structures to other sites, and remediation of known or suspected environmental contamination for a current or proposed housing development or project located in a downtown area or adjacent neighborhood. Demolition of HUD-assisted or HUD-owned housing units may be undertaken only with the prior approval of HUD.  

   (c) New construction of housing activities or projects limited to occupancy by low-income, very low-income, and/or extremely low-income households, or located in a downtown area or adjacent neighborhood. Construction of a housing development or projects located in a downtown area or adjacent neighborhood, including housing assisted under federal or state law, through the incurrence of development costs and predevelopment costs.  

   (d) Activities incurring development costs and predevelopment costs.  

   (e) Preservation of existing housing or activities related to the preservation of existing housing.

   (f) Activities related to community development projects, infrastructure improvements, economic development projects, blight elimination, and community facilities. Activities under this category include acquisition, construction, reconstruction, rehabilitation or installation of community facilities, and infrastructure improvements or other incurrence of development costs or predevelopment costs carried out by the recipient. In undertaking thesesuch activities, design features and improvements that promote energy efficiency may be included. TheseSuch activities may also include the execution of architectural design features and similar treatments intended to enhance the aesthetic quality of facilities and improvements receiving assistance. TheseSuch community facilities include, but are not limited to, shelters for the homeless; shelters for victims of spousal and dating violence; halfway houses for children temporarily separated from their parents or guardians, drug offenders or parolees; group homes for individualspersons with disabilities, and temporary housing for disaster victims.  

   (g) Activities incurring insurance costs related to any purpose authorized by the Michigan housing and community development program.  

   (h) Activities involving operating, replacement, and other reserves related to any purpose authorized by the Michigan housing and community development program.  

   (i) Activities providing down payment and other direct homeownership assistance to low-income, very low-income, or extremely low-income households.  

   (j) Activities providing security deposit assistance to low-income, very low-income, or extremely low-income households.  

   (k) Activities providing foreclosure prevention or foreclosure assistance to low-income, very low-income, or extremely low-income households.  

   (l) Activities related to individual development accounts established under the individual or family development account program act, 2006 PA 513, MCL 206.901 to 206.911.  

   (m) Activities related to ending homelessness.  

   (n) The provision of assistance either through the recipient directly or through public and private organizations, agencies, and other subrecipients, including nonprofit and for-profit subrecipients, to facilitate economic development projects or activities that support housing development that does the following:  

    (i) Provides financial support for the establishment, stabilization, and expansion of business enterprises.  

    (ii) Provides technical assistance, advice, and business support services to owners of business enterprises and personsindividuals developing business enterprises.  

    (iii) Provides general support, including, but not limited to, peer support programs, counseling, childcare, transportation, and other similar services, to owners of business enterprises and persons individuals developing business enterprises.  

    (iv) Assistance under this subrule may also include Provides training, technical assistance, or other support services to increase the capacity of the recipient or subrecipient to carry out the activities under this subrule.  

   (o) Assistance activities provided to public or nonprofit entities, including municipalities and land bank fast track authorities organized under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, to increase the capacity of such the entities to carry out program eligible housing development, neighborhood revitalization, or economic development activities.  

   (p) Predatory lending prevention or relief.  

   (q) Any o Other housing and community development fund or program activities authorized under the authority's act.  

  (2) Ineligible applicants include the following:  

   (a) An applicant, recipient, or an entity in which the applicant or recipient has or had a controlling interest, that has either failed to submit or is now delinquent in providing an explanation, evidence of corrective action or a payment of disallowed costs or fees as a result of a program funding monitoring review.  

   (b) An applicant, recipient, or an entity in which the applicant or recipient has or had a controlling interest, that is currently delinquent on any loan payments or any fees due and payable to the authority.  

   (c) An applicant, recipient, or an entity in which the applicant or recipient has or had a controlling interest, that was has been or is barred, debarred, suspended, or terminated from procurement in a state or federal program or listed in the list of parties excluded from federal procurement or non-procurement programs or has otherwise been debarred by HUD any federal agency or the authority.  

   (d) Any individual acting as an owner, member, principal, officer, manager, or key employee of the applicant, recipient, or an entity in which the applicant or recipient has or had a controlling interest, who was has been convicted of a state or federal felony crime involving fraud, bribery, theft, misrepresentation of material fact, misappropriation of funds, or other similar criminal offenses within 15 years precedingbefore the application deadline.  

   (e) An applicant, recipient, or an entity in which the applicant or recipient has or had a controlling interest, and at the time of application submission is subject to any of the following:  

    (i) Enforcement or disciplinary action under state or federal securities law or by the National Association of Securities Dealers (NASD).  

    (ii) A federal tax lien.  

    (iii) An enforcement proceeding with any governmental entity.  

   (f) An applicant, recipient, or an entity in which the applicant or recipient has or had a controlling interest that has open or unresolved, or both, audit issues with HUD any federal agency or the authority related to this program or other programs administered by HUD any federal agency or the authority.  

   (g) An applicant for whom a submitted application is incomplete;, lacks required supporting documentation;, or is so unclear or disjointed that, in the discretion of the authority staff, it the application cannot reasonably be reviewed to determine whether it meets program criteria. If an application is determined to be ineligible pursuant to this rule, the application will be terminated. To the extent that the authority staff was able to complete a limited application review, specific reasons for the authority's staff’s determination of ineligibility must be included in the termination letter to the applicant.  

   (h) An applicant, recipient, or an entity in which the applicant or recipient has or had a controlling interest, has an ownership interest, or exercises control of 1 or more rental housing properties in this state that is subject to a regulatory agreement or tax credit regulatory agreement with the authority butand is in material noncompliance with the regulatory agreement or tax credit regulatory agreement as determined by authority staff.  

   (i) Any applicant submitting an application that includes financial participation by a personan individual who, during the 5-year period preceding before the date of the bid or award, has beenwas convicted of violating a federal law in connection with a contract awarded by the federal government for relief, recovery, or reconstruction efforts as a result of any disaster occurring after January 1, 2000, or was assessed a federal civil or administrative penalty in relation to such athe contract.  

   (j) An applicant submitting an Aapplications for proposals which that cause or result in the permanent displacement of low-income, very low-income, or extremely low-income households. Low-income, very low-income, or extremely low-income households that may be temporarily displaced by the rehabilitation of affordable housing may be eligible for compensation of moving and relocation expenses, that must be paid by the housing and community development funding recipient. If a recipient violates the dislocationdisplacement or relocation provisions of this subrule 2 of this rule, that recipient shall repay program money and the landlord or developer shall must pay the affected parties' costs and all moving expenses.

PART 9A. APPLICATION, EVALUATION, AND PROGRAM REQUIREMENTS

R 125.193  Application procedures and requirements.  

  Rule 193. (1) Applications received by the authority in response to a Michigan housing and community development program NOFA or RFP must be handled in the following manner:  

   (a) The authority staff shall accept applications on an ongoing basis during the application acceptance period as specified in the NOFA or RFP.  

   (b) Applications submitted and accepted by the authority will beare reviewed in the following manner:  

    (i) Authority staff shall review all applications for eligibility, threshold, and selection criteria and ensure that all application requirements have beenare met.  

    (ii) Authority staff shall review applications to determine whether they comply with the NOFA or RFP and applicable law.  

    (iii) Authority staff may issue a notice of any administrative deficiencies related to applications reviewed.  

    (iv) Authority staff shall conduct a comprehensive review of financial feasibility for development activities proposed in any application determined deemed acceptable under paragraphs (i) to (iii) of this subdivision.  

    (v) Authority staff shall create a report setting forth the recommended terms, amount, and any conditions related to the proposed loan, grant, or project.  

  (2) Upon completion of staff review and any associated resolution of any applicable administrative deficiencies, applications that the authority staff review committee reviews, scores, and selects for award shall be are recommended to the authority for approval.  In accordance with section 21(6) of the act, MCL 125.1421, the authority may delegate approval of housing and community development program awards to the authority’s executive director.

  (3) If the authority staff determines that an application contains deficiencies that in the determination of the authority staff, require clarification or correction, the authority staff may request clarification or correction of the administrative deficiencies, including threshold, selection criteria documentation, and financial feasibility analysis.  

  (4) Requests for clarification or correction may be sent to the applicant in the form of a facsimile, e-mail, or be relayed to the applicant via a telephone call and documented in the application file.  

  (5) An applicant may not change or supplement any part of an application in any manner after submission to the authority, propose to increase the award amount, or revise the unit mix, as to income levels or bedroom-count mixes, or both, except to remedy an administrative deficiency identified by authority staff.  

  (6) The authority may decline to fund any application if the proposed activities do not, in the authority's sole determination, represent a prudent use of the housing and community development program funds. Authority staff may make this determination if application materials or terms are determined by staff to be unacceptable or unaligned with housing and community development program requirements.

  (7) The authority is not obligated to proceed with any action pertaining to any applications that are received and may decide it is in the authority's best interest to refrain from pursuing any selection process.  

  (8) The authority Authority staff may negotiate individual elements of any application, loan, or grant. Revision of application terms does not guarantee an award of funding.  

  (9) The authority Authority staff may conduct a site review. Applicants must shall receive recommendation for approval from the authority staff and the review committee to be considered for funding by the authority. 

R 125.194  Evaluation criteria for funding; other program requirements.  

  Rule 194. (1) Requests for funding scoring the highest on the criteria explained in subrule (2) of this rule are most likely to be awarded funds.  

  (2) The following criteria will beare used in evaluating the responses to any Michigan housing and community development program NOFA or RFP:  

   (a) To be eligible for funding, an applicant shallmust first demonstrate that it meets each of the following threshold criteria:  

    (i) The application is consistent with the requirements established in the act, this rule, the NOFA, or the RFP.  

    (ii) If the application involves either a rental housing project or a home ownership project, the application requests funding for a project that sets aside not less than at least 20% of the rental units or housing units in the project for households earning not more than 60% of the area median income.  

    (iii) The application includes a letter of support from the highest-ranking elected official for each of the jurisdictions served by the proposed project.  

    (iv) The application meets the readiness to proceed requirements established in the NOFA or the RFP.  

    (v) Any outstanding housing and community development fund predevelopment loans for the same proposed development site must be paid in full at the time of loan closing for the current requested funds.  

   (b) Evaluation factors used to evaluate and score applications, as more fully described in a NOFA or RFP, will includes, at a minimum, the following factors:  

    (i) The extent to whichthat the proposal or project represents the leveraging of program funds with additional, non-housing and community development fund sources.  

    (ii) The ability of the applicant or recipient, or both, to administer the funding award effectively and deliver results within program timelines.  

    (iii) The extent to whichthat the proposal or project helps meet anythe 25% earmark provided in the act for rental housing projects that do not qualify under preferences for special population groups, or other preferences contained in the allocation plan.  

    (iv) The extent to whichthat the proposal or project helps meet anythe 30% earmark provided in the act for projects that target extremely low-income households, including developing housing for the homeless, supportive housing, transitional housing, and permanent housing.  

    (v) The extent to whichthat the proposal helps meet anythe statutory requirement that a portion of the fund be expended for personsindividuals with disabilities and individuals living in eligible distressed areas.  

  (3) Other Michigan housing and community development program requirements include the following:  

   (a) All uses of program funds must comply with the applicable income limitations contained in the act, these rules, the annual plan, the applicable NOFA or RFP, and any statements or representations made in any application or other documentation submitted as a part of any application, reporting, or other monitoring related to any award of program funds.  

   (b) A rental housing project assisted by the fund must set aside at least not less than 20% of the housing units in the project for households earning not more than 60% of the area median income.  

   (c) A home ownership project assisted by the fund must set aside at least not less than 20% of the housing units in the project for households earning not more than 60% of the area median income.  

   (d) If the housing funded by the program is rental housing, the owner or manager of the housing shallmust agree in writing not to evict a tenant without just cause, as that phrase is defined in section 44a of 1933 PA 18 (Ex. Sess.), MCL 125.694a.  

   (e) All assistance for housing and real property acquired or supported by program funds must include an agreement, restriction, or real covenant related to the recapture of program funds upon sale, conversion, or disposition of the property if the recapture provisions of these rules are triggered.  

R 125.195  Biennial plan; allocations; earmarks; carryover.  

  Rule 195. (1) Pursuant to the act, the authority staff shall biennially develop, and propose, and the authority shall establish, a biennial plan related to the Michigan housing and community development program. The biennial plan must be issued pursuant to the requirements of the act and all of the following:  

   (a) The authority shall, as a part of the biennial plan, issue an allocation plan related to the disbursement of program funds.  

   (b) The authority's biennial plan and allocation plan must contain an allocation formula related to the disbursement of program funds.  

   (c) The following statutory earmark and lookback procedures apply to any biennial plan, allocation plan, and allocation formula, unless amended by statute:  

    (i) Not less than 25% of the dollars used for loans or grants made in any program year must be earmarked for rental housing projects that do not qualify under preferences for special population groups, or other preferences contained in the allocation plan.  

    (ii) Not less than 30% of the dollars used for loans or grants made in any program year must be earmarked for projects that target extremely low-income households and include housing for the homeless, supportive housing, transitional housing, or permanent housing.  

    (iii) A portion of the fund must be expended for housing for persons individuals with disabilities and individuals living in eligible distressed areas.  

  (2) After the completion of any application receipt, review, selection, and approval  

process related to any biennial plan, allocation plan, or allocation formula in any program year, the authority staff shall look back and review the intended distribution of the program funds for that year and determine whether the earmark requirements in this rule and in the act will be met under the proposed distribution. If the earmark requirements are not met, and eligible applications meeting the earmark requirements have beenare received, accepted, and have not otherwise been approved for funding, the authority staff shall revise the proposed distribution to comply with the applicable earmark requirements. The revised plan shall must be presented to and approved by the authority.  

  (3) Uncommitted funds at the end of any program year must be carried over and used under the applicable biennial plan, allocation plan, and allocation formula related to any subsequent program year.  

R 125.196  Reporting requirements; program periods; compliance monitoring; review; recapture.

  Rule 196. (1) The following provisions regarding reporting apply:  

   (a) All recipients of program funds shall report back to the authority on a semiannual basis about their use of program funds in a manner provided by authority staff. The authority staff shall collect information from recipients to establish that the program funds are being spent correctly and to measure the results or performance of its spending against the objectives of the Michigan housing and community development program.  

   (b) The authority staff shall establish as a part of each biennial plan reporting forms that  

must be submitted by the recipients on a semiannual basis. These reports must include both a performance monitoring form and a financial monitoring form.  

   (c) The performance monitoring form must be signed by the chief executive officer or equivalent of the funding recipient and analyze the management performance of the recipient, specifically including a description of the following items:  

    (i) What was done with the program funds and whether what was done it is was consistent with the goals and strategies outlined in the application.  

    (ii) How well program activities were performed it was done, including a discussion of how success or failure will be is measured.  

    (iii) Who has What populations have benefited from the distribution of program funds, including details on results.  

   (d) The financial monitoring form must be signed by the chief financial officer, or equivalent, of the recipient and analyze the financial performance of the recipient. Program funds must be used in an efficient, effective, and appropriate manner, consistent with the Michigan housing and community development program objectives and priorities, including community needs. Program funds must also be appropriately and properly accounted for with documentation that adequate safeguards have been instituted by the recipient to ensure that there is no misuse of program funds.  

  (2) The following provisions apply to Michigan housing and community development program periods and extensions:  

   (a) The initial program period for any loan or grant awarded under the program is 2 years from after the date of the award of program funds. All activities related to the use of program funds must be completed within this 2-year time frame. Any program moneymonies outstanding on the date that is 2 years afterfrom the date of the award isare subject to the recapture provisions of this rule and must be immediately repaid to the authority.  

   (b) Recipients must shall maintain compliance with each of its contracts and agreements with the authority.  

   (c) Recipients must shall comply with any restrictions that are stated in and enforced through a regulatory agreement, grant agreement, or any other legal documents associated with any award of program funds. These restrictions may include, but are not limited to, the following, for a term of years:  

    (i) Rent restrictions.  

    (ii) Record keeping and reporting.  

    (iii) Income targeting of tenants.  

   (d) The authority Authority staff will shall monitor compliance with project restrictions and any other covenants by recipients in any Michigan housing and community development program fund agreement. An annual compliance fee of up to $100.0075.00 per unit may be charged for this review.  

(3) The authority executive director shall name a review committee that shall meet to consider, review, score, and recommend for approval program funding awards and award amounts based on applications received in any program funding round. The review committee shall meet to formally review the applications and make recommendations to the authority regarding the total awards to be made in any application year and the amounts and recipients of the proposed awards. Each member of the committee shall complete a scoring sheet detailing the member's evaluation and score of the application on the various evaluation factors or criteria. The committee shall make any program funding award recommendation decisions based on the scoring of these factors or criteria, subject to revision under the applicable earmark requirements. All decisions of the committee shall be made based on the scoring outcomes or by majority vote, or both, as applicable. The authority shall have final authority to approve or disapprove of any program funding award recommendation made by the review committee.  

  (34) Recapture of program funds must be accomplished as follows:  

   (a) The authority has the power to recapture or de-obligate program funds and program funding awards in certain circumstances. The power to recapture or de-obligate program funds may apply to entire awards or portions of awards. Recaptured or de-obligated program funds must be re-deposited in the fund and used to make future awards in the current and next applicable program year or program funding round.  

   (b) The following reasons may justify the de-obligation or recapture of program funds:  

    (i) Inability of the applicant or recipient to execute effectively carry out the program activity and obligate the program funds within the initial program period 2-year timeline.  

    (ii) Inability of the applicant or recipient to make drawdowns of program funds on a regular and timely basis, such that the authority has grounds to question the overall viability of the project.  

    (iii) Substantial, significant, and lengthy noncompliance with the act, rules, NOFA, RFP, application, biennial plan, allocation plan, allocation formula, program funding agreement, applicable federal requirements, or any other documentation or requirements related to any award. In making the decision on de-obligation or recapture in this instance, the authority staff shall consider whether or not the non-compliance is due to factors beyond the applicant's or recipient's control.  

    (iv) If the total cost of the anticipated program activity is less than the total cost anticipated in the application or other documentation provided by the applicant or recipient, or both, the authority may de-obligate the portion of the award exceeding the actual costs of the program activity.  

    (v) At the end of the initial program period and any approved extension of that period, the unspent funds remaining in the program account, project account, or any other accounts related to the program activity must be recaptured and returned to the program fund.  

    (vi) If t The applicant or recipient, or both, voluntarily returns the program funds to the authority and ceases all program activity and reporting upon the return of program funds.  

    (vii) Any o Other reasons justifying recapture or de-obligation approved by the authority, upon notice to the applicant or recipient, or both, of both the authority's consideration of a recapture or obligation decision and notice that the authority has approved a resolution or motion evidencing its decision to recapture or de-obligate the program funds.  

R 125.197   Hearings procedures.  

  Rule 197. Hearing procedures must include citizen participation as follows:  

  (a) The authority shallmust, through its staff, hold not less thanat least 3 public hearings in separate locations throughout thisthe state biennially on the program priorities for the upcoming 2-year period. The in-person hearings may include an option for virtual participation. At the hearings, the authority staff shall solicit comments from the public, eligible applicants, and administrators and development owners on the Michigan housing and community development fund and program rules, guidelines, and procedures.  

  (b) The authority shallmust consider the comments received at public hearings. Biennially, the authority mustshall review the performance, administration, and implementation of the Michigan housing and community development fund in light of public comment it receives. The authority shall also review the biennial plan, allocation plan and allocation formula, funding goals, and earmarks relating to allocation and award of the Michigan housing and community development fund moneymonies.  

  (c) The authority shallmust submit an annual report to the governor and the legislature under section 58b(6) of the act, MCL 125.1458b. The authority shall include the statutorily required information in the annual report, as well as and any other information that the authority staff, review committee, or authority board believe would enhance the understanding that the elected officials and citizens of this state have regarding the operation of the Michigan housing and community development program.  

  (d) After the applicable application deadline related to the NOFA or RFP, applications for the Michigan housing and community development funds are public information subject to release under the freedom of information act (FOIA), 1976 PA 442, MCL 15.231 to 15.246. , and the authority shall afford the public an opportunity to comment on proposed housing applications prior to the making of awards.  

(e) Before any proposed change to these rules, the authority must conduct a public hearing in accordance with the provisions of the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.  

R 125.198   Michigan housing and community development fund advisory  

  committee.

  Rule 198. Pursuant to section 58e of the act, MCL 125.1458e, the authority shall seek the advice of the Michigan housing and community development fund advisory committee on both of the following:  

(a) Recommendations for the biennial allocation plan required under section 58b of the act, MCL 125.1458b.  

(b) Fund expenditure review, including whether the expenditures are distributed fairly and equitably, whether the expenditures satisfy the housing needs and priorities in this state, and whether the expenditures satisfy the economic needs and priorities in this state Executive Reorganization Order No. 2009-24, MCL 125.1392, all of the authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations or other funds of the Michigan housing and community development fund advisory committee authorized under MCL 125.1458e, were transferred by Type III transfer to the  authority and the Michigan housing and community development fund advisory committee is abolished.

R 125.199  Records.  

  Rule 199. Records maintenance requirements for applicants and recipients include the following:  

  (a) In addition to any regular reporting obligations provided under R 125.193, applicants, recipients, or both are required to maintain records on each of the following issues and shall, upon the written request of the authority, submit information to the authority on any program activity or administration issues, which may include, but are not limited to, the following:  

   (i) Information as may be necessary to determine whether a project is benefiting low-income, very low-income, and extremely low-income households.  

   (ii) The monthly rent or mortgage payment for each dwelling unit in each structure assisted.  

   (iii) Information as may be necessary to determine whether the applicant or recipient, or both, has carried out housing or community development activities in accordance with the requirements and primary objectives of the Michigan housing and community development fund program and implementing regulations.  

   (iv) The size and income of the household for each unit occupied by a low-income, very low-income, and extremely low-income households.  

   (v) Data on the extent to which any racial and ethnic demographic groups and households of a type identified by the authority have applied for and benefited from any project or activity funded in whole or in part with funds made available under the Michigan housing and community development program. This data must be updated annually by the applicant or recipient.  

   (vi) A final statement of accounting upon completion of the project.  

   (vii) Any other Other information reasonably within the applicant's or recipient's ability to determine and to report to the authority, requested by the authority, related to the grant or loan.  

  (b) Applicants and recipients shall maintain records pertinent to the tenant's files for  

at least not less than 3 years.  

  (c) Applicants and recipients shall maintain records pertinent to program grants or loans, or both, including, but not limited to, project costs and certification work papers for at least not less than 5 years.  

  (d) Applicants and recipients shall maintain records in an accessible location.

PART 10. IDENTITY OF INTEREST WITH VENDORS TO AUTHORITY-FINANCED DEVELOPMENTS

R 125.203  Requirements for conducting business with identity of interest vendors.  

  Rule 203. Owners and management agents shall conform to all of the following requirements when conducting business with vendors with whom there is an identity of interest:  

  (a) Both the owner and management agent shall inform the authority division of  

asset management of any proposed vendor with whom there is an identity of interest. The  

notification must be submitted concurrent with submission of the development operating budget, but at least once per year.  

  (b) The owner and management agent shall submit a certified disclosure for each proposed vendor with whom there is an identity of interest that lists the names of all of the following persons individuals:  

   (i) All owners and managers of vendors that are sole proprietorships.  

   (ii) All copartners or general partners of vendors that are copartnerships or limited partnerships.

   (iii) All joint venturers of vendors that are joint ventures.  

   (iv) All directors, officers, and shareholders of vendors that are corporations.  

  (c) The certified disclosure must list, for each person individual described in subdivision (b) of this subrule, the names of the individuals involved with the owner or management agent with whom there is an identity of interest and the extent or degree of the identity of interest. The certified disclosure must also contain other information as the authority requires, such as the following:  

   (i) Federal tax identification number of all vendors with whom there is identity of interest.  

   (ii) The location of all offices that contain business records of the vendors with whom there is an identity of interest.  

   (iii) The names and addresses of the bookkeepers and accountants of the vendors with whom there is an identity of interest.  

  (d) The certified disclosure must be submitted on forms designated by the authority staff and be submitted together with the submission described in subdivision (a) of this subrule or, if the proposed vendor is not listed on such the submission, at the time when the owner or management agent requests approval to contract with a proposed vendor with whom there is an identity of interest.  

  (e) The owner and management agent shall submit, together with its certified disclosure, a copy of the organizational documents for each proposed vendor with whom an identity of interest is shared.

  (f) The authority staff has the right to audit the books of the vendor with whom there is an identity of interest to determine whether amounts paid to identity of interest vendors were reasonable and whether there has been compliance with applicable restrictions on return. The owner, management agent, and proposed vendor shall acknowledge, in the certified disclosure, the authority's right to conduct such an audit.  

  (g) Both the owner and management agent shall submit, to the authority, a request for approval to use a proposed vendor with whom there is an identity of interest. Neither the owner nor management agent may contract for goods or services from any vendor with whom there is an identity of interest until the proposed vendor and contract amount is approved by the authority staff. If an owner or management agent enters into a contract for goods or services beyond the goods or services previously approved by the authority, or if the contract price increases beyond the prices previously approved by the authority, then an additional approval must be requested of the authority.  

  (h) The authority staff may, upon a request from the owner or management agent and after review of the disclosure required pursuant to the provisions of subdivisions (b) to (f) of this subrule, determine that the identity of interest between the owner and agent is insignificant. If such a determination is made, the owner and management agent need not comply with the provisions of subdivision (i) of this subrule.  

  (i) Unless compliance with this subdivision is excused pursuant to the provisions of subdivision (h) of this subrule, all requests for approval of proposed vendors must be accompanied by a detailed explanation of the goods or services to be provided by the proposed vendor and not less than 3 bids for such the goods and services. The 3 bids must include a bid from the vendor with whom there is an identity of interest.  

  (j) Requests for approval of a proposed vendor must be submitted concurrent with the submission of the development operating budget and any other time that the owner or management agent wishes to contract with a vendor with whom there is an identity of interest. However, a proposed vendor and contract amount need be approved only 1 time per operating year per development, unless the vendor supplies goods or services beyond the goods or services previously approved by the authority or the contract price increases beyond the prices previously approved by the authority.  

R 125.204  Sanctions; "excessive costs" defined.  

  Rule 204. (1) As used in this rule, the term "excessive costs" means all costs that would not have been incurred by the development if the owner or management agent, or both, had exercised reasonable business judgment and obtained only those goods and services reasonably necessary for operation of the development at competitive prices.

(2) If an owner or management agent is found to be in violation of these rules concerning identity of interest, the authority, or the officers or employees to whom it may delegate authority, may impose the following sanctions in addition to any other remedies available through contractual or grant documents, or at law or equity:  

   (a) On the first occurrence of a violation, either or both of the following sanctions may be imposed:  

    (i) The owner or management agent may be required to reimburse the development operating account for all excessive costs, as determined by the authority or the officers or employees to whom it may delegate authority, incurred as a result of the contract with the vendor with whom there is an identity of interest.  

    (ii) The owner and management agent found to be in violation may be prohibited from using any vendor with whom there is an identity of interest for a period of 1 year.  

   (b) For each violation after the first, the following sanctions may be imposed, as applicable:  

    (i) The owner or management agent may be required to reimburse the development operating account for all excessive costs, as determined by the authority or the officers or employees to whom it may delegate authority, incurred as a result of the contract with the vendor with whom there is an identity of interest.  

    (ii) If the violation involves a vendor who has an identity of interest with the management agent, then either or both of the following sanctions may be imposed:  

     (A) The management agent's management agreement may be terminated, and the hiring of a new management agent is required.  

     (B) The vendor who shares the identity of interest with the management agent may be barred from doing business with other authority-financed developments managed by the same management agent.  

    (iii) If the violation involves a vendor who has an identity of interest with the owner, then the owner and its management agent may be prohibited from doing business with that particular vendor at the development in question for a period of 5 years.  

(2) As used in this rule, the term "excessive costs" means all costs that would not have been incurred by the development if the owner or management agent, or both, had exercised reasonable business judgment and obtained only those goods and services reasonably necessary for operation of the development at competitive prices.  

PART 11. DEBARMENT AND SUSPENSION FROM PARTICIPATION IN AUTHORITY PROGRAMS AND TRANSACTIONS

R 125.211  Applicability; sanctions.  

  Rule 211. (1) The provisions of this part apply to any program or transaction funded or administered by the authority, including any of the following:

   (a) Grants, assistance contracts, loans, subsidies, awards, loan service contracts, allocations, or contracts related to federal tax credits administered by the authority.  

   (b) Participation or agency contracts for authority programs.  

   (c) Professional or technical service contracts or subcontracts.  

  (2) Sanctions imposed pursuant to this part do not preclude a party from the purchase from the authority of housing developments or single-family homes that the authority has acquired through foreclosure or deed in lieu of foreclosure if the acquisition is on a cash basis or made with financing from sources other than the authority.  

  (3) Sanctions imposed pursuant to this part do not bar any person individual from receipt of any funds, credits, or benefits, as administered by the authority, to which that the individual person is otherwise entitled under federal or state law and for which the authority the sole program administrator; however, this exception does not enable or authorize participation in the program involving the applicable funds, credit, or benefit beyond the mere receipt of such the funds, credit, or benefit. This provision does not prevent sanctions under this part where the authority acts as program administrator and also has the ability to impose additional requirements beyond those requirements of state or federal law as a prerequisite to receipt of the respective funds, credit, or benefit.  

  (4) Persons Individuals are subject to the provisions of this part whether their involvement is as a contractor, participant, or one receiving funds directly or indirectly from a contractor or a participant. Persons Individuals are subject to the provisions of this part whether or not the conduct for which a sanction is imposed occurred while they were the individual was engaged in an authority program or transaction. Persons Individuals are subject to the provisions of this part whether their actions upon which a sanction is based were taken in on their own behalf or on behalf of another individual person.

  (5) If a program participant is debarred or suspended by any federal agency from participation in any federal program, federal debarment and suspension proceedings and findings that result in debarment or suspension are effective as to any federal program that the authority participates in. The lack of a federal finding as to debarment or suspension does not prevent the authority from proceeding against an authority-administered federal program participant under this part.

R 125.212  Definitions.  

  Rule 212. Definitions provided for in part 1 of the authority’s rules, R 125.101 to R 125.103, apply to the provisions of this part unless superseded in this rule as follows:  

  (a) "Adequate evidence" means information that is sufficient to support a reasonable belief that a particular act, omission, or event has occurred.  

  (b) "Affiliate" means individuals or entities with whom a person shares an identity of interest as defined in part 10 of these rules.  

  (c) "Contractor" means an individual or entity that does either of the following:  

   (i) Performs or provides labor or professional or technical services or supplies goods to the authority pursuant to a contract or participation agreement.  

   (ii) Conducts business with the authority as the agent, representative, or subcontractor of another contractor.  

  (d) "Conviction" means a judgment of guilt in a criminal case by any court of competent jurisdiction, whether by verdict, guilty plea, or plea of nolo contendre, and whether or not the judgment has been was or is on appeal.  

  (e) "Debarment" means action taken to exclude a person from direct or indirect participation in any authority program or transaction whether as a contractor or participant.  

  (f) "Notice" means written communication delivered by personal service or sent either by certified mail, return receipt requested, or by commercial courier with verification of delivery.  

  (g) "Participant" means any person who directly or indirectly takes part in or is involved in an authority program or transaction other than as a contractor. Participant includes a person who receives benefits or income from or through another participant or contractor. A participant includes, but is not necessarily limited to, any of the following:  

   (i) Bonding companies.  

   (ii) Borrowers.  

   (iii) Builders.  

   (iv) Mortgagors.  

   (v) Management agents.  

   (vi) Marketing agents.  

   (vii) Owners of housing developments.  

   (viii) Recipients of authority subsidies or federal subsidies administered by the authority.  

   (ix) Grantees.  

   (x) Persons employed by, or offering services to, participants, such as any of the  

following:  

    (A) Architects.  

    (B) Accountants.  

    (C) Attorneys.  

    (D) Consultants.  

    (E) Engineers.  

    (F) Contractors to participants.  

    (G) Subcontractors of contractors to participants.  

  (h) "Person" means an individual, partnership, corporation, association, unit of government, or other form of legal entity, whether in good standing or otherwise.  

  (i) "Respondent" means the person against whom debarment or suspension is to be imposed.  

  (j) "Suspension" means an action that immediately excludes a person from direct or indirect participation in authority programs or transactions, whether as a participant or contractor, for a temporary period pending completion of an investigation or administrative or other legal proceeding.

R 125.214  Debarment procedures.  

  Rule 214. (1) Debarment procedures mustshall be initiated by an authorized officer. Procedures will commence with the authority staff sending a notice of debarment to the respondent.  

  (2) A notice of debarment must be sent to each respondent and contain all of the  

following information:  

   (a) That debarment is being proposed.  

   (b) The acts or omissions that are the grounds upon which that debarment is based on.  

   (c) The particular provisions of laws, regulations, rules, and program requirements involved.  

   (d) The opportunity for the respondent to request and schedule a hearing on the debarment.  

   (e) The potential effects of debarment.  

  (3) A respondent who that receives a notice of debarment is entitled to a hearing on the issue. The hearing will must be conducted in accordance with R 125.111 and the provisions of the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, which governs all of the following:  

   (a) Choice and scope of authority of hearing officers.  

   (b) Rules of conduct and evidence for hearing.  

   (c) Decisions of hearing officers.  

   (d) Burdens or levels of proof required.  

   (e) Rights of administrative and judicial appeal.  

  (4) If the official who is to make the final decision has not heard the contested case or read the record, the decision, if adverse to the respondent, may must not be made until a written proposal for decision has been is sent to all parties by the official hearing officer who has heard the contested case or read the record. Any party who is adversely affected has 10 days after from issuance of the proposal for decision to file written exceptions and arguments. If written exceptions or arguments are not submitted within 10 days, there will be no further proceedings before the issuance of a final decision.  

  (5) The final decision of the authority, as issued by an authorized officer, will must be issued within 60 days after the date of the hearing or, if a proposal for decision is required pursuant to the provisions of subrule (4) of this rule, within 60 days of after the closing date for submission of written exceptions to the proposal for decision, whichever is later.  

R 125.215  Debarment; duration.  

  Rule 215. Debarment shall  be is for a period of time commensurate with the acts or omissions of the person to be debarred. In general, a person shall may not be debarred for more than 3 years. However, where if the offense is egregious, a longer period of debarment may be imposed. If a person is suspended pursuant to these rules before debarment, the period of debarment must be reduced by the period of time that the person has been suspended.

R 125.216  Debarment; scope and effect.  

  Rule 216. (1) The decision to debar a person must specify the scope of debarment. A person may be debarred from 1 or more particular authority programs or transactions or from all authority programs and transactions.  

  (2) The decision to debar a person, unless prohibited by law, may terminate existing contracts or agreements between the debarred persons and other nondebarred participants or contractors. However, the decision to debar may allow the contracts or agreements to remain in effect. A participant or contractor shall may not renew or extend a contract or agreement with a debarred person.  

  (3) A decision to debar a person may also serve to debar any affiliate of the person, if the affiliate is named in the notice to debar and given an opportunity to participate in the debarment hearing. There need not be shown any participation in or knowledge of the improper conduct, by the affiliate, that led to the decision to debar.  

R 125.218  Reinstatement after debarment.  

  Rule 218. (1) Debarred participants or contractors may not resume participation in authority programs or transactions until expiration of the period of debarment or until a petition for early reinstatement has been is submitted and approved by an authorized officer of the authority, whichever occurs first.  

  (2) Petitions for early reinstatement may only must be submitted as follows:  

   (a) Upon discovery of new evidence that was not previously discoverable or upon the dismissal of criminal charges or a civil or administrative action, the reversal of a criminal conviction or a civil judgment, or the reversal of the debarment or other exclusion imposed by another governmental agency, upon which that the authority debarment was based on.  

   (b) Upon a bona fide change in ownership or management of the person debarred.  

   (c) Upon proof that the causes for debarment have been eliminated.  

  (3) A petition for early reinstatement may be submitted as follows:  

   (a) Immediately after the occurrence of events set forth in subrule (2)(a) of this rule.  

   (b) Not less than 6 months after the issuance of a final decision of debarment if the petition is based upon reasons set forth in subrule (2)(b) and (c) of this rule.  

  (4) The petition for early reinstatement must be submitted to the official who issued the final decision to debar, or to the official’s his or her successor. The petition must be accompanied by written evidence that supports the request. The official who issued the final decision may request a written response to the petition from the authorized officer that initiated the debarment proceedings. There shall not be a is no hearing upon a petition for early reinstatement unless ordered by the official ruling upon the petition. The official may refer a petition for early reinstatement, together with evidence submitted in connection with or in response to the petition, to a hearing officer for review and written recommendation.  

R 125.219  Suspension; causes.  

  Rule 219. Suspension may be imposed, pursuant to the provisions of this rule, if adequate evidence of any of the following exists:  

  (a) That the person has committed an offense set forth in R 125.213(a). Either of the following events shall, by itself, constitute adequate evidence for purposes of imposing suspension:  

   (i) Indictment for an offense listed in R 125.213(a).  

   (ii) Arraignment on the information in circuit court, or an equivalent state court in a state other than Michigan this state, for an offense listed in R 125.213(a). However, adequate evidence may exist although neither of the events listed in paragraphs (i) and (ii) of this subdivision has occurred.  

  (b) That cause for debarment under R 125.213 exists.  

  (c) Suspension or debarment by a federal agency or another state agency for any cause specified in R 125.213.  

R 125.220  Suspension; procedures.  

  Rule 220. (1) Suspension procedures must be initiated by an authorized officer. Procedures commence with sending a notice of suspension to the respondent.  

  (2) A notice of suspension must be sent to each respondent and contain all of the following information:  

   (a) That suspension is has been proposed.  

   (b) The acts, events, or omissions upon which the suspension is based on.  

   (c) The particular provisions of law, regulation, rules, or program requirements involved.  

   (d) When the suspension becomes effective. The suspension may be made effective immediately if the authorized officer determines that an exigent need to cease activity is necessary to protect the public health, safety, or welfare.

   (e) The opportunity to request and schedule a hearing on the suspension.  

   (f) The potential effects of suspension.  

  (3) A respondent who that receives a notice of suspension is entitled to a hearing on the issue. The hearing must be conducted in accordance with the provisions of R 125.11 and the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, which governs all of the following:  

   (a) Choice and scope of authority of hearing officers.  

   (b) Rules of conduct and evidence for hearing.  

   (c) Decisions of hearing officers.  

   (d) Burdens or levels of proof required.  

   (e) Rights of administrative and judicial appeal.  

  (4) If the official who is to makes the final decision has not heard the contested case or read the record, the decision, if adverse to the respondent, shall must not be made until a written proposal for decision has been is sent to all parties by the official hearing officer who heard the contested case or read the record. Any party who is adversely affected has 10 after days from the issuance of the proposal for decision to file written exceptions and arguments. If written exceptions or arguments are not submitted within 10 days, there shall be no further proceedings before the issuance of a final decision.  

  (5) The final decision of the authority, as issued by an authorized officer, must be issued within 60 days after the date of the hearing or, if a proposal for decision is required pursuant to the provisions of subrule (4) of this rule, the closing date for submission of written exceptions to the proposal for decision, whichever is later.  

R 125.222  Suspension; duration.  

  Rule 222. (1) Suspensions are for a temporary period pending the completion of the specified legal proceeding, administrative action, investigation, or other such event.  

  (2) A suspension becomes effective upon the suspension date indicated in the notice provided pursuant to R 125.220. The suspension continues until the issuance of the authority’s issues a final decision following a hearing, if a hearing is requested, on the notice of suspension, which may lift or continue the suspension on such terms determined by the authorized officer. or immediately upon the issuance of a notice of suspension if there exists cause for suspension pursuant to the provisions of R 125.219 and an authorized office determines that an immediate suspension is necessary to protect the public health, safety, or welfare.  

  (3) A suspension remains effective, unless overruled by the final decision following a hearing on a notice of suspension, until the expiration of the stated period of suspension or a petition for early reinstatement is granted, whichever occurs first.  

  (4) In cases based solely upon an alleged or suspected violation of federal or state law, a suspension terminates within 12 months, unless 1 of the following actions has been is initiated:  

   (a) Criminal prosecution.  

   (b) Civil action.  

   (c) An administrative hearing or action for the alleged or suspected violation of law and issuance of a final decision and order, which may lift or continue the suspension on such terms determined by the authorized officer issuing the final decision.  

 
PART 12. BROWNFIELD REDEVELOPMENT FINANCING ACT ACTIVITIES
 
R 125.225  Review of brownfield plans. 
  Rule 225. Authority staff shall propose to the authority criteria for the evaluation of plans submitted to the authority pursuant to the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670. Upon adoption of the criteria, authority staff shall analyze, and approve or deny, plan submissions according to the criteria, and report on brownfield redevelopment and tax increment financing activity to the authority no less than quarterly. 
 
R 125.227  Coordination with brownfield redevelopment oversight agencies.
  Rule 227. The executive director and authority staff shall ensure that the authority’s guidance, documents, and reporting requirements regarding the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670, and tax increment financing align with that of the department, of environment, Great Lakes, and energy, or its successor agency, and the Michigan Strategic Fund, or its successor agency.