HOUSE BILL No. 5538 March 22, 2000, Introduced by Rep. DeWeese and referred to the Committee on Local Government and Urban Policy. A bill to amend 1966 PA 346, entitled "State housing development authority act of 1966," by amending sections 21, 22b, 22c, 32, 32a, 32b, 44, 44a, and 46 (MCL 125.1421, 125.1422b, 125.1422c, 125.1432, 125.1432a, 125.1432b, 125.1444, 125.1444a, and 125.1446), section 21 as amended by 1983 PA 49, sections 22b, 22c, 32, 32a, and 44a as amended by 1996 PA 475, sections 32b and 44 as amended by 1998 PA 33, and section 46 as amended by 1993 PA 220. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 21. (1) There is created a public body corporate and 2 politic to be known as the "Michigan state housing development 3 authority". The authority shall consist ofthe director of4social services, the director of commerce, the state treasurer,5and 43 HEADS OF PRINCIPAL DEPARTMENTS OF THE EXECUTIVE BRANCH 6 OF THE STATE GOVERNMENT AND 5 persons appointed by the governor 03268'99 ** LTB 2 1 with the advice and consent of the senate. Not more than23 2 of the persons appointed shall be members of the same political 3 party.Of the members first appointed by the governor, 2 shall4be designated to serve for a term of 3 years and 2 for a term of54 years from the dates of their appointments.Upon completion of 6 each term, a person shall be appointed for a term of 4 years, 7 except that a vacancy shall be filled for the unexpired term. A 8 member of the authority shall not receive compensation for serv- 9 ices butshall beIS entitled to the necessary expenses, 10 including traveling expenses, incurred in the discharge of the 11 member's duties. Each member shall hold office until a successor 12 has been appointed and has qualified. A certificate of appoint- 13 ment or reappointment of a member shall be filed with the author- 14 ity and this certificate shall be conclusive evidence of the 15 proper appointment of that member. 16 (2) TO THE EXTENT REQUIRED BY FEDERAL LAW, 1 OF THE 5 17 AUTHORITY MEMBERS APPOINTED BY THE GOVERNOR IS DESIGNATED THE 18 RESIDENT MEMBER. THE RESIDENT MEMBER SHALL MEET BOTH OF THE FOL- 19 LOWING REQUIREMENTS: 20 (A) THE PERSON IS AN INDIVIDUAL DIRECTLY ASSISTED BY A FED- 21 ERAL HOUSING PROGRAM ADMINISTERED THROUGH THE AUTHORITY. AS USED 22 IN THIS SUBDIVISION, "DIRECTLY ASSISTED" MEANS RESIDING IN 23 FEDERALLY-SUPPORTED PUBLIC HOUSING OR RECEIVING SECTION 8 24 TENANT-BASED ASSISTANCE. DIRECTLY ASSISTED DOES NOT INCLUDE A 25 STATE-FINANCED HOUSING ASSISTANCE PROGRAM, SECTION 8 26 PROJECT-BASED ASSISTANCE, OR SECTION 8 NEW CONSTRUCTION 27 ASSISTANCE. 03268'99 ** 3 1 (B) THE PERSON IS AN ELIGIBLE RESIDENT. AS USED IN THIS 2 SUBDIVISION, "ELIGIBLE RESIDENT" MEANS A PERSON WHOSE NAME 3 APPEARS ON THE LEASE OF THE ASSISTED HOUSING WHO IS 18 YEARS OF 4 AGE OR OLDER. 5 (3) A PERSON WHO NO LONGER MEETS EITHER REQUIREMENT OF SUB- 6 SECTION (2)(A) OR (B) IS REMOVED FROM THE AUTHORITY FOR CAUSE 7 UPON THE APPOINTMENT OF ANOTHER PERSON AS THE RESIDENT MEMBER 8 POSITION. 9 (4)(2)The powers of the authority shall be vested in the 10 members in office. A majority of the members of the authority 11 constitutes a quorum for the purpose of conducting the 12 authority's business, for exercising the authority's powers, and 13 for other purposes, notwithstanding the existence of any 14 vacancies. Action may be taken by the authority upon a vote of a 15 majority of the members present, unless the bylaws of the author- 16 ity require a larger number, EXCEPT THAT TO THE EXTENT REQUIRED 17 BY FEDERAL LAW, THE RESIDENT MEMBER SHALL ONLY TAKE PART IN, VOTE 18 ON, AND EXERCISE THE POWERS OF THE AUTHORITY CONCERNING DECISIONS 19 RELATED TO THE ADMINISTRATION, OPERATION, AND MANAGEMENT OF FED- 20 ERAL PUBLIC HOUSING PROGRAMS AND SECTION 8 TENANT-BASED ASSIST- 21 ANCE PROGRAMS. THE RESIDENT MEMBER SHALL NOT TAKE PART IN, VOTE 22 ON, OR EXERCISE THE POWERS OF THE AUTHORITY IN A MATTER THAT 23 UNIQUELY APPLIES TO THE RESIDENT MEMBER AND IS NOT GENERALLY 24 APPLICABLE TO ALL RESIDENTS. In the absence of fraud, a determi- 25 nation of the authority with respect to findings of fact made by 26 the authority acting within the scope of its powersshall beIS 03268'99 ** 4 1 conclusive, except with respect to the approval of the municipal 2 finance commission or its successor agency as required by law. 3 (5) Meetings of the members of the authority may be held 4 anywhere in this state. The businesswhichTHAT the authority 5 may perform shall be conducted at a public meeting of the author- 6 ity held in compliance withAct No. 267 of the Public Acts of71976, as amended, being sections 15.261 to 15.275 of the Michigan8Compiled LawsTHE OPEN MEETINGS ACT, 1976 PA 267, MCL 15.261 TO 9 15.275. Public notice of the time, date, and place of the meet- 10 ing shall be given in the manner required byAct No. 267 of the11Public Acts of 1976, as amendedTHE OPEN MEETINGS ACT, 1976 PA 12 267, MCL 15.261 TO 15.275. 13 (6)(3)The authority shall elect a chairperson and 14 vice-chairperson. The authority shall employ an executive direc- 15 tor, legal and technical experts, and other officers, agents, and 16 employees, permanent and temporary, as the authority requires, 17 and shall determine their qualifications, duties, and 18 compensation. The authority may delegate to 1 or more agents or 19 employees those powers or duties as the authority considers 20 proper. 21 (7)(4)The authority shall be within the department of 22commerceCONSUMER AND INDUSTRY SERVICES and shall exercise the 23 authority's prescribed statutory powers, duties, and functions 24 independently of the head of that department. However, the bud- 25 geting, procurement, and related functions of the authority shall 26 be performed under the direction and supervision of the director 27 ofcommerceCONSUMER AND INDUSTRY SERVICES. 03268'99 ** 5 1 (8) AS USED IN THIS SECTION, "SECTION 8" MEANS SECTION 8 OF 2 THE UNITED STATES HOUSING ACT OF 1937, CHAPTER 896, 88 STAT. 662, 3 42 U.S.C. 1437f. 4 Sec. 22b. (1) The authority is designated as the housing 5 credit agency for the state for the purpose of allocating and 6 administering the low income housing credit established under 7 section 42 of the internal revenue code OF 1986. 8 (2) The state's housing credit ceiling applicable for a cal- 9 endar year shall be an amount equal to the sum of all of the 10 following: 11 (a) One dollar and twenty-five cents multiplied by the 12 state's population, unless a different amount is authorized by 13 section 42 of the internal revenue code OF 1986. The state's 14 population shall be determined by the most recent census esti- 15 mates of the state's population published by the United States 16 bureau of census before the beginning of the calendar year or by 17 another method as authorized by the internal revenue code OF 18 1986. 19 (b) The unused state housing credit ceiling, if any, of the 20 state for the preceding calendar year, for years subsequent to 21 1989. 22 (c) The amount of state housing credit ceiling returned in 23 the calendar year, for years subsequent to 1989. 24 (d) The amount, if any, allocated to the state under section 2542(h)(3)(d)42(h)(3)(D) of the internal revenue code OF 1986. 26 (3) An applicant for an allocation of low income housing tax 27 credit shall be qualified to receive the credit pursuant to the 03268'99 ** 6 1 requirements of the internal revenue code OF 1986 and the 2 regulations, guidelines, rulings, and interpretations issued by 3 the United States treasury department or the internal revenue 4 service,which shall controlTHAT CONTROLS in the event of con- 5 flict with a requirement of this section. 6 (4) The state's low income housing tax credit is allocable 7 pursuant to a qualified allocation plan prepared by the authori- 8 ty, submitted to the legislature, and approved by the governor 9 after notice to the public and public hearing. The plan shall 10 set forth criteria to be used to determine housing priorities of 11 the state, and shall give the highest priority to those projects 12 in which the highest percentage of the housing credit dollar 13 amount is to be used for project costs other than the cost of 14 intermediaries, unless granting such priority would impede the 15 development of projects in hard-to-develop areas. In allocating 16 low income housing tax credit dollar amounts among selected 17 projects, the allocation plan shall give preference to projects 18 serving the lowest income tenants and projects obligated to serve 19 qualified tenants for the longest periods, and shall provide a 20 procedure that the authority will follow in notifying the inter- 21 nal revenue service of noncompliance with the provisions of sec- 22 tion 42 of the internal revenue code OF 1986 of which the author- 23 ity becomes aware. The plan shall set forth the process for 24 selecting eligible projects and may be amended from time to time 25 in accordance with its terms and the requirements of section 42 26 of the internal revenue code OF 1986. The selection criteria in 03268'99 ** 7 1 the qualified allocation plan shall include those set forth in 2 section 42 of the internal revenue code OF 1986. 3 (5) The state's low income housing tax credit authority 4 shall be distributed in accordance with the qualified allocation 5 plan. Amounts allocable under subsection (2) shall be set aside 6 as follows: 7 (a) Qualified nonprofit organizations as required by 8 section 42 of the internal revenue code OF 1986 - not less than 9 10%. 10 (b) Rural housingserviceprojects - not less than5%11 10%. 12 (c) Housing projects in eligible distressed areas - not less 13 than 30%. 14 (d) Housing projects for the elderly - not less than 10%. 15 Projects counted in 1 category shall not count in another cate- 16 gory towards meeting the minimum set-aside requirements. 17 (6) Except for the amount for qualified nonprofit organiza- 18 tions, if the low income housing tax credit set aside under sub- 19 section (5) is not allocated before October 1 of the year in 20 which that credit amount is authorized under subsection (2)(a), 21 the authority may reapportion the unallocated credit amounts in a 22 reasonable manner pursuant to the state's qualified allocation 23 plan. 24 (7) All applications for low income housing tax credit shall 25 be on the authority's prescribed forms and shall include informa- 26 tion necessary pursuant to the qualified allocation plan and 27 section 42 of the internal revenue code OF 1986. 03268'99 ** 8 1 (8) The authority may charge applicants reasonable fees 2 under the low income housing tax credit program. 3 (9) FOR THE PURPOSES OF THIS SECTION, "RURAL HOUSING 4 PROJECTS" MEANS PROPOSED OR EXISTING HOUSING PROJECTS THAT FALL 5 INTO 1 OR MORE OF THE FOLLOWING CATEGORIES: 6 (A) LOCATED IN AN AREA OTHER THAN A METROPOLITAN COUNTY. 7 (B) FUNDED BY A FEDERAL PROGRAM FOR THE DEVELOPMENT OF RURAL 8 HOUSING. 9 (C) FINANCED BY A LOAN GUARANTEED BY RURAL HOUSING SERVICES 10 OR A SUCCESSOR AGENCY. 11 Sec. 22c. (1) The authority may incorporate 1 or more non- 12 profit housing corporations forthe purposes of owning,1 OR 13 MORE OF THE FOLLOWING PURPOSES: 14 (A) OWNING, holding, maintaining, improving, completing, 15 receiving subsidy payments for, or transferring ownership of a 16 housing project or housing unit either acquired through foreclo- 17 sure or deed in lieu of foreclosure or over which the authority 18 has, following a declaration of default, otherwise obtained 19 control.In order to preserve housing for low and moderate20income persons, the authority may also incorporate or cause the21incorporation of 1 or more nonprofit housing corporations for the22purpose of acquiring23 (B) ACQUIRING housing projects or an interest in the owner- 24 ship of 1 or more housing projects and owning, holding, maintain- 25 ing, or improving the housing projects, if regulatory or contrac- 26 tual restrictions assuring occupancy of some or all of the units 27 in 1 or more of the housing projects by families and persons of 03268'99 ** 9 1 low or moderate income are subject to termination within a 2-year 2 period following the acquisition of the housing project. A non- 3 profit housing corporation incorporated under this subsection may 4 acquire a housing project only if all of the following require- 5 ments are met: 6 (i)(a)At least 6 months have passed since the eighteenth 7 anniversary of the commencement of amortization of the project's 8 permanent mortgage loan on the housing project. 9 (ii)(b)The authority by resolution determines all of the 10 following: 11 (A)(i)The tenants residing in the housing project have 12 been notified of the opportunity to acquire the housing project 13 in accordance with the Cranston-Gonzalez national affordable 14 housing act, Public Law 101-625, 104 Stat. 4079. 15 (B)(ii)No tenant organization that the authority deter- 16 mines to have the legal, financial, and managerial capabilities 17 to acquire the housing project has developed and submitted to the 18 housing project owners an acquisition proposal with respect to 19 which negotiations are ongoing. 20 (C)(iii)No local or statewide nonprofit housing corpora- 21 tion that the authority determines to have the legal, financial, 22 and managerial capabilities to acquire the project has submitted 23 to the housing project owners an acquisition proposal with 24 respect to which negotiations are ongoing. 25 (iii)(c)The nonprofit housing corporation incorporated 26 pursuant to this section contracts with a private firm for the 27 management of the housing project. 03268'99 ** 10 1 (C) CARRYING OUT PROGRAMS AND OVERSIGHT RESPONSIBILITIES ON 2 BEHALF OF OR IN CONJUNCTION WITH THE UNITED STATES DEPARTMENT OF 3 HOUSING AND URBAN DEVELOPMENT WITH RESPECT TO FEDERAL HOUSING 4 PROGRAMS. 5 (2) A subsidiary nonprofit housing corporation may sue and 6 be sued in its own name, and the circuit court of Ingham county 7 has exclusive jurisdiction over all actions brought against a 8 subsidiary nonprofit housing corporation, except if jurisdiction 9 over the action is in the supreme court, the court of appeals, or 10 the court of claims. 11 (3) A subsidiary nonprofit housing corporation is a separate 12 legal entity. The authority is not liable for the debts or obli- 13 gations or for any actions or inactions of the subsidiary non- 14 profit housing corporation unless it expressly agrees otherwise. 15 A member, officer, or employee of a subsidiary nonprofit housing 16 corporation is not individually liable for actions undertaken or 17 failure to act on behalf of the subsidiary nonprofit housing cor- 18 poration so long as the individual is acting or reasonably 19 believes he or she is acting within the scope of his or her 20 authority as a member, officer, or employee of the subsidiary 21 nonprofit housing corporation. 22 (4) The authority may make loans or grants to a subsidiary 23 nonprofit housing corporation to enable the subsidiary nonprofit 24 housing corporation to carry out any of its purposes. 25 Sec. 32. (1) The authority may create and establish 1 or 26 more special funds called capital reserve funds to secure notes 27 and bonds of the authority. The authority shall pay into a 03268'99 ** 11 1 capital reserve fund money appropriated and made available by 2 this state for the purposes of the fund, the proceeds of the sale 3 of notes or bonds to the extent provided in the resolution of the 4 authority authorizing the issuance of the notes or bonds, and 5 other money that is made available to the authority for the pur- 6 pose of a fund from any other source. In addition to, or in lieu 7 of, depositing money in a capital reserve fund, the authority may 8 obtain and pledge letters of credit and, effective retroactively 9 as of June 1, 1993, insurance policies, surety bonds, guarantees, 10 or other security arrangements if those other security arrange- 11 ments are approved by the state treasurer, for the purposes of 12 the capital reserve fund. The amount available under letters of 13 credit, insurance policies, surety bonds, guarantees, or other 14 security arrangements pledged to a capital reserve fund shall be 15 credited toward the satisfaction of a capital reserve fund 16 requirement. All money and proceeds under letters of credit, 17 insurance policies, surety bonds, guarantees, or other security 18 arrangements held inanyA capital reserve fund, except as spe- 19 cifically provided, shall be used as required solely for the pay- 20 ment of the principal of notes or bonds of the authority secured 21 in whole or in part by the capital reserve fund, for the purchase 22 or redemption of notes or bonds, for the payment of interest on 23 the notes or bonds, or for the payment ofanyA redemption pre- 24 mium required to be paid when the notes or bonds are redeemed 25 prior to maturity. However, the authority shall not use the cap- 26 ital reserve fund foranyAN optional purchase or optional 27 redemption of notes or bonds if the use would reduce the total of 03268'99 ** 12 1 the money on deposit in the capital reserve fund and amounts 2 available underanyA letter of credit, insurance policy, 3 surety bond, guarantee, or other security arrangement pledged to 4 a capital reserve fund to less than the capital reserve fund 5 requirement established for the fund.Any incomeINCOME or 6 interest earned by, or increment to, a capital reserve fund due 7 to the investment of the money in the capital reserve fund may be 8 transferred by the authority to other funds or accounts of the 9 authority to the extent that the transfer does not reduce the 10 total of the amount of money in a capital reserve fund and 11 amounts available underanyA letter of credit, insurance 12 policy, surety bond, guarantee, or other security arrangement 13 pledged to the capital reserve fund below the capital reserve 14 fund requirement for a fund. 15 (2) The authority shall not at any time issue notes or bonds 16 secured in whole or in part by a capital reserve fund if, upon 17 the issuance of the notes or bonds, the amount in the capital 18 reserve fund, including the amounts available underanyA 19 letter of credit, insurance policy, surety bond, guarantee, or 20 other security arrangement pledged toaTHE capital reserve 21 fund, would be less than the capital reserve fund requirement for 22 the fund, unless the authority, at the time of issuance of the 23 notes or bonds, deposits in the fund from the proceeds of the 24 notes or bonds to be issued, or from other sources, an amount 25 that, together with the amount then in the fund, is not less than 26 the capital reserve fund requirement for the fund, or obtains a 27 letter of credit, insurance policy, surety bond, guarantee, or 03268'99 ** 13 1 other security arrangement in an amount that, together with the 2 amount then in the fund, is not less than the capital reserve 3 fund requirement for the fund. For THE purposes of this section, 4 "capital reserve fund requirement" means the requirement provided 5 in the resolution of the authority authorizing the notes or bonds 6 with respect to which the fund is established, which amount shall 7 not exceed the maximum amount of principal and interest maturing 8 and becoming due inanyA succeeding calendar year on the notes 9 or bonds of the authority secured in whole or part by the fund. 10 (3) The authority has, before January 9, 1977, in connection 11 with its housing development bonds issued pursuant to a bond res- 12 olution dated June 10, 1971, established within the capital 13 reserve fund relating to housing development bonds, a capital 14 reserve account and a capital reserve capital account. This cap- 15 ital reserve account constitutes a capital reserve fund under 16 this act. Money in this capital reserve account shall secure 17 only housing development bonds issued pursuant to the June 10, 18 1971 bond resolution. Unless otherwise provided by the authori- 19 ty, money in the capital reserve capital account shall secure all 20 bonds and notes of the authority. In determining whether the 21 capital reserve fund requirement established foranyA capital 22 reserve fund has been met, the authority shall not include or 23 take into account money in the capital reserve capital account. 24 (4) The authority has, before January 9, 1977, in connection 25 with its insured mortgage revenue bonds issued pursuant to a bond 26 resolution dated May 11, 1976, established a bond reserve fund. 03268'99 ** 14 1 This bond reserve fund constitutes a capital reserve fund under 2 this act. 3 (5) The authority may issue notes and bonds subject to the 4 following limitations: 5 (a) The authority shall not have outstanding at any time 6 bonds and notes for any of its corporate purposes in an aggregate 7 principal amount exceeding $4,200,000,000.00, excluding all of 8 the following: 9 (i) The principal amount of bonds and notes issued TO refund 10 outstanding bonds and notes. 11 (ii) The principal amount of bonds and notes that appreciate 12 in principal amount, except to the extent of the principal amount 13 of these bonds and notes payable at such time. 14 (iii) The principal amount of notes and bonds representing 15 original issue discount, if any. 16 (b) After November 1,19992002, the limitation on the 17 aggregate principal amount of notes and bonds provided in subdi- 18 vision (a) is reduced to $3,000,000,000.00. 19 (6) Subject to the limitation in subsection (5), that por- 20 tion of the state ceiling to be used for qualified mortgage 21 bonds, mortgage credit certificates, or bonds to finance quali- 22 fied residential rental projects shall be allocated to the 23 authority unless the authority elects by resolution to allow 24 another issuer to issue qualified mortgage bonds, mortgage credit 25 certificates, or bonds to finance qualified residential rental 26 projects. As used in this subsection: 03268'99 ** 15 1 (a) "State ceiling" means the aggregate amount of certain 2 private activity bonds, including qualified mortgage bonds, that 3 may be issued in any calendar year in this state pursuant to sec- 4 tion 146 of the internal revenue code OF 1986. 5 (b) "Qualified mortgage bond", "mortgage credit 6 certificate", and "qualified residential rental project" mean 7 those terms as defined in the internal revenue code OF 1986. 8 (7) To assure the continued operation and solvency of the 9 authority for the carrying out of the public purposes of this 10 act, the authority shall accumulate in each capital reserve fund 11 an amount equal to the capital reserve fund requirement for that 12 fund. If at any time the capital reserve fund requirement for a 13 capital reserve fund exceeds the amount of the capital reserve 14 fund, the authority shall transfer to this fund from the capital 15 reserve capital account established by the authority's June 10, 16 1971 bond resolution the amount necessary to restore the capital 17 reserve fund to an amount equal to the capital reserve fund 18 requirement. If a deficiency exists in more than 1 capital 19 reserve fund and the amount in the capital reserve capital 20 account is not sufficient to fully restore the capital reserve 21 funds, the money in the capital reserve capital account shall be 22 allocated between the deficient capital reserve funds pro rata 23 according to the amounts of the deficiencies. If at any time the 24 capital reserve capital account has been exhausted and the capi- 25 tal reserve fund requirement for a capital reserve fund exceeds 26 the amount of the capital reserve fund, the chairperson of the 27 authority on or before September 1 shall certify to the governor 03268'99 ** 16 1 and budget director the amount, if any, necessary to restore a 2 capital reserve fund to an amount equal to the capital reserve 3 fund requirement. The governor and the budget director shall 4 include in the annual budget the amount certified by the chair- 5 person of the authority. 6 (8) In computing the amount of a capital reserve fund for 7 the purposes of this section, securities in which all or a por- 8 tion of the fund is invested shall be valued at par. If the 9 securities are purchased at other than par, the securities may be 10 valued at their cost to the authority, as adjusted by amortiza- 11 tion of the discount or premium paid upon purchase of the securi- 12 ties on a pro rata basis to the maturity date of the securities. 13 (9) To the extent possible and consistent with sound fiscal 14 management and good housing development planning, the authority 15 shall make full use of available federal housing subsidy 16 programs. The authority shall recommend programs and legislation 17 to better maintain and improve existing housing stock. 18 (10) The authority shall require that not less than 15% of 19 the multifamily dwelling units financed by mortgage loans from 20 the authority inanyA calendar year under federal government 21 subsidy programs, subject to applicable federal regulations, be 22 offered on a priority basis to low income families and persons 23 receiving their primary incomes from social security programs or 24 state and federal public assistance programs. 25 (11) The authority shall implement a program of loans for 26 mobile homes as soon as is reasonably feasible. The authority 27 shall develop a program for financing the construction or 03268'99 ** 17 1 rehabilitation of mobile home parks and mobile home condominium 2 projects within 24 months after December 31, 1982, subject to a 3 determination of feasibility by the authority and the authority's 4 ability to sell bonds. 5 (12) The authority shall implement a program of loans for 6 consumer housing cooperatives as soon as is reasonably feasible. 7 The authority shall develop a program for financing the construc- 8 tion or rehabilitation of consumer housing cooperative projects 9 within 12 months after July 10, 1984, subject to a determination 10 of feasibility by the authority and the authority's ability to 11 sell bonds. 12 (13) In addition to the powers granted the authority in this 13 act to promulgate rules in accordance with the administrative 14 procedures act of 1969,Act No. 306 of the Public Acts of 1969,15being sections 24.201 to 24.328 of the Michigan Compiled Laws16 1969 PA 306, MCL 24.201 TO 24.328, the authority shall furnish to 17 each member of the legislature a copy of notice of a public hear- 18 ing or proposed rule change at least 10 days before the public 19 hearing and at least 20 days before the adoption of the rule. 20 (14) Before October 1 of each year, the authority shall 21 identify housing production goals for housing projects financed 22 with bonds and notes issued under the limitations provided in 23 section 32a. The authority shall identify a goal for the author- 24 ity as a whole and a specific goal for each program. The author- 25 ity shall submit those goals in an annual report to the governor 26 and to the house committee on urban affairs and the senate 27 committee on finance, or their successor committees. 03268'99 ** 18 1 (15) Within 6 months after the legislature enacts or the 2 authority adopts a new program, the authority shall submit an 3 interim report to the same persons towhichWHOM an annual 4 report is submitted. If both the legislature and the authority 5 establish a program, the authority shall submit the interim 6 report within 6 months after the effective date of the act estab- 7 lishing the program. The authority shall include in an interim 8 report all of the information required in an annual report that 9 is specific to that program. 10 (16) After the initial or an interim report, the authority 11 shall include in an annual report all of the following for each 12 program: 13 (a) Whether the production goals for the previous 12-month 14 period have been met. If those production goals have not been 15 met, the authority shall explain in the report the reasons why 16 those production goals have not been met. 17 (b) Any significant obstacles to the development of housing 18 for low and moderate income persons that have been encountered by 19 the authority. 20 (c) The estimated economic and social benefits of these 21 housing projects to the immediate neighborhoods in which the 22 housing projects have been constructed. 23 (d) The estimated economic and social benefits of these 24 housing projects to the municipalities in which the housing 25 projects have been constructed. 26 (e) The extent of displacement, direct and indirect, of 27 lower income persons caused by these housing projects, and steps 03268'99 ** 19 1 taken by the authority and other governmental and private parties 2 to ameliorate the displacement, and the results of those 3 efforts. 4 (f) The estimated extent of additional reinvestment activi- 5 ties by private lenders attributable to the authority's financing 6 of these housing projects. 7 (g) The age, race, family size, median income, and average 8 income of the tenants of these housing projects. 9 (h) The estimated economic impact of these housing projects, 10 including the number of construction jobs created, wages paid, 11 and taxes and payments in lieu of taxes paid. 12 (i) The progress in developing mobile home parks and mobile 13 home condominium projects, in financing the construction or reha- 14 bilitation of consumer housing cooperative projects, and in 15 financing the construction or rehabilitation of nonprofit housing 16 corporation projects. 17 (j) A report on the neighborhood preservation program under 18 section 44f shall include information about the progress in 19 developing the program, the neighborhoods identified as being 20 eligible for the program, the neighborhoods or municipalities 21 that have applied for the program, the neighborhoods that have 22 received funds from the program, and the reasons that neighbor- 23 hoods or municipalities have been denied funds from the program. 24 (k) A report on the status of federal programs that provide 25 assistance to low income tenants displaced as the result of pre- 26 payments of federally and authority assisted loans. If the 27 authority determines that federal programs are inadequate for 03268'99 ** 20 1 tenants of authority-financed housing projects, the authority 2 will provide recommendations to the legislature as to how to 3 address this problem on or before May 1, 1989. 4 (l) A report on the low income housing tax credit program 5 under section 22b,whichTHAT shall include information regard- 6 ing the amount of tax credits allocated to the state under each 7 of the subdivisions of section 22b(2); the projects that have 8 received tax credits; and the reasons why projects have been 9 denied tax credits under the program; a geographical description 10 of the distribution of those tax credits; and a description of 11anyamendments to the allocation plan made during that year. 12 (m) A report on education and training opportunities pro- 13 vided by the authority under section 17whichTHAT will indi- 14 cate the types of education and training opportunities made 15 available and the amount of funding committed to these 16 activities. 17 (17) The authority shall insure that the income characteris- 18 tics of individuals served by an authority program are provided 19 in a manner that insures each individual's confidentiality. The 20 authority shall also insure that proprietary information in its 21 reports under this section concerning an individual, corporation, 22 cooperative, or association is not released without the permis- 23 sion of that individual, corporation, cooperative, or 24 association. 25 Sec. 32a.With respect to bonds, other than refunding26bonds, issued to finance single family homes after November 1,271989, for the first 120 days following the announcement of a03268'99 ** 21 1program funded by the proceeds of those bonds, 50% of the2proceeds of those bonds available to make loans, as determined by3the preliminary information obtained by originating lenders at4the time a reservation is submitted, shall be reserved for appli-5cants with gross annual incomes at or below 55% of the statewide6median gross income.With respect to bonds, other than refunding 7 bonds, issued to finance single family homes after November 1, 8 1989, not more than 50% of the proceeds of those bonds may be 9 used to finance single family homes for homebuyers who previously 10 have had an ownership interest in a residence. For purposes of 11 this section, a previous ownership interest in a mobile home 12 shall not be considered to be an ownership interest in a 13 residence. The authority may rely on the applicant's affidavit 14 to determine whether or not the applicant has had a prior owner- 15 ship interest in a residence. The authority shall publicize the 16 programs funded under this section by using all reasonable means 17 available, including, but not limited to, public interest 18 announcements in the media, and announcements to lending institu- 19 tions, community groups, and real estate organizations. The 20 authority shall submit a report annually to the legislature con- 21 taining all statistics necessary to indicate its compliance with 22 this section. 23 Sec. 32b. (1) The authority is designated as the adminis- 24 trator of the mortgage credit certificate program for this state 25 permitted under section 25 of the internal revenue code OF 1986. 26 The authority shall elect under section 25 of the internal 27 revenue code OF 1986 to convert at least $59,000,000.00 of 1985 03268'99 ** 22 1 federal mortgage revenue bond authority into mortgage credit 2 certificate authority. 3 (2) The authority shall prepare guidelines that would allow 4 for the implementation of a mortgage credit certificate program 5 through mortgage lenders. 6 (3) To qualify for receipt of a mortgage credit certificate 7 with respect to the acquisition ofan existingA housing unit, 8 including a residential condominium or mobile home, the purchase 9 price with respect to the unit shall not exceed$80,000.00 and10the borrower's family income shall not exceed the following:11(a) If the housing unit is located in an eligible distressed12area, $47,900.00 on or before May 1, 1995, and $50,055.00 after13that date.14(b) If the housing unit is located in an area other than an15eligible distressed area, $41,700.00 on or before May 1, 1995,16and $43,575.00 after that date.17(4) To qualify for receipt of a mortgage credit certificate18with respect to the acquisition of a new housing unit, including19a residential condominium or mobile home, the purchase price with20respect to the unit shall not exceed $99,000.00 and the21borrower's family income shall not exceed the following:22(a) If the housing unit is located in an eligible distressed23area, $47,900.00 on or before May 1, 1995, and $50,055.00 after24that date.25(b) If the housing unit is located in an area other than an26eligible distressed area, $41,700.00 on or before May 1, 1995,27and $43,575.00 after that date.1 OF THE FOLLOWING LIMITS, THAT 03268'99 ** 23 1 INCREASE INITIALLY ON MARCH 1, 2001, AND THEN ON EACH FOLLOWING 2 MARCH 1, AT A RATE OF 5%, COMPOUNDED ANNUALLY: 3 (A) $99,000.00 FOR AN EXISTING HOUSING UNIT. 4 (B) $120,000.00 FOR A NEW HOUSING UNIT. 5 (4) TO QUALIFY FOR RECEIPT OF A MORTGAGE CREDIT CERTIFICATE, 6 THE BORROWER'S FAMILY INCOME SHALL NOT EXCEED 1 OF THE 7 FOLLOWING: 8 (A) FOR A UNIT LOCATED IN A METROPOLITAN COUNTY, 100% OF THE 9 STATEWIDE MEDIAN FAMILY INCOME. 10 (B) FOR A UNIT LOCATED IN A NONMETROPOLITAN COUNTY, 11 $43,575.00, UNTIL THE UNITED STATES DEPARTMENT OF HOUSING AND 12 URBAN DEVELOPMENT'S PUBLISHED NONMETROPOLITAN COUNTY MEDIAN 13 FAMILY INCOME EXCEEDS $43,575.00. TO QUALIFY FOR A CERTIFICATE 14 AFTER THAT TIME, THE BORROWER'S FAMILY INCOME SHALL NOT EXCEED 15 100% OF THE NONMETROPOLITAN COUNTY MEDIAN FAMILY INCOME. 16 (5) The authority may increase the purchase price limit in 17 subsection (3) to cover the cost of improvements to adapt the 18 property for use by disabled individuals OR UNEXPECTED COST 19 INCREASES DURING CONSTRUCTION. The amount of the increase shall 20 be the amount of the costs described in this subsection or the 21 sum of $3,500.00, whichever is less. 22(6) The authority may increase the purchase price limit in23subsection (4) to cover unexpected cost increases during con-24struction or the cost of improvements to adapt the property for25use by disabled individuals. The amount of the increase shall be26the amount of the costs described in this subsection or the sum27of $3,500.00, whichever is less.03268'99 ** 24 1 (6)(7)To qualify for receipt of a mortgage credit 2 certificate with respect to the improvement or rehabilitation of 3 an existing housing unit, including a residential condominium or 4 mobile home, the borrower's family income shall not exceed the 5 following: 6 (a)If the housing unit is located in an eligible dis-7tressed area, $47,900.00 on or before May 1, 1995, and $50,055.008after that date.FOR A UNIT LOCATED IN A METROPOLITAN COUNTY, 9 100% OF THE STATEWIDE MEDIAN FAMILY INCOME. 10 (b)If the housing unit is located in an area other than an11eligible distressed area, $41,700.00 on or before May 1, 1995,12and $43,575.00 after that date.FOR A UNIT LOCATED IN A NONMET- 13 ROPOLITAN COUNTY, $43,575.00, UNTIL THE UNITED STATES DEPARTMENT 14 OF HOUSING AND URBAN DEVELOPMENT'S PUBLISHED NONMETROPOLITAN 15 COUNTY MEDIAN FAMILY INCOME EXCEEDS $43,575.00. TO QUALIFY FOR A 16 CERTIFICATE AFTER THAT TIME, THE BORROWER'S FAMILY INCOME SHALL 17 NOT EXCEED 100% OF THE NONMETROPOLITAN COUNTY MEDIAN FAMILY 18 INCOME. 19 (7)(8)If an income or purchase price limit prescribed by 20 subsection (3), (4), (5), OR (6), or (7)exceeds an applicable 21 limit prescribed by the internal revenue code OF 1986, the inter- 22 nal revenue code OF 1986 limit applies. Except with respect to 23 newly constructed housing units, the authority may at any time by 24 resolution establish, foranyA length of time itdeems25 CONSIDERS appropriate, maximum borrower income or purchase price 26 limits more restrictive than those maximum limitations set forth 27 in this section. The authority shall advise the appropriate 03268'99 ** 25 1 house and senate standing committees 5 days prior to the adoption 2 of a resolution establishing more restrictive income or purchase 3 price limits. 4 (8)(9)The changes made BY 1995 PA 186 to purchase price 5 limits in THE SUBSECTIONS THAT AT THE TIME WERE DESIGNATED 6 subsections (3) and (4)by 1995 PA 186 areWERE retroactive, 7 effective as of October 29, 1993. 8 Sec. 44. (1) (a) The authority may make loans toanyA 9 nonprofit housing corporation, consumer housing cooperative, 10 limited dividend housing corporation, limited dividend housing 11 association, mobile home park corporation, or mobile home park 12 association or toanyA public body or agency for the construc- 13 tion or rehabilitation, and for the long-term financing, of the 14 following: 15 (i) Housing for low income or moderate income persons. 16 (ii) For the period of time beginning May 1, 1984, and 17 ending November 1, 1987, housing projects in which not less than 18 20% of the dwelling units are allotted to individuals of low or 19 moderate income within the meaning of former section 103(b)(4)(A) 20 of the internal revenue code OF 1986; not less than 60% of the 21 dwelling units are available to persons and families whose gross 22 household income does not exceed 125% of the higher of either the 23 median income for a family in this state or the median income for 24 a family within the nonmetropolitan county or metropolitan sta- 25 tistical area in which the housing project is located, as deter- 26 mined by the authority; and not more than 20% of the dwelling 27 units are available for occupancy without regard to income. The 03268'99 ** 26 1 enactment of this subparagraph or the expiration of the authority 2 granted by itshallDOES not affect rules in effect before 3 July 10, 1984, or promulgated after July 9, 1984, to define low 4 or moderate income persons. 5 (iii) For the period of time beginning May 1, 1984, and 6 ending November 1, 1987, housing projects in eligible distressed 7 areas in which housing projects not less than 20% of the dwelling 8 units are allotted to individuals of low or moderate income 9 within the meaning of former section 103(b)(4)(A) of the internal 10 revenue code OF 1986; not less than 60% of the dwelling units are 11 available to persons and families whose gross household income 12 does not exceed 150% of the higher of either the median income 13 for a family in this state or the median income for a family 14 within the nonmetropolitan county or metropolitan statistical 15 area in which the housing project is located, as determined by 16 the authority, and not more than 20% of the dwelling units are 17 available for occupancy without regard to income. 18 (iv) Beginning November 1, 1987, multifamily housing 19 projects that meet the 20-50 OR 40-60 test established in section 20 142 of the internal revenue code OF 1986 and, in addition, in 21 which not less than 15% of the dwelling units are allotted to 22 persons and families whose gross household income does not exceed 23 125% of the higher of either the median income for a family in 24 this state or the median income for a family within the nonmetro- 25 politan county or metropolitan statistical area in which the 26 housing project is located, as determined by the authority, or to 27 the elderly; not less than 15% of the dwelling units are allotted 03268'99 ** 27 1 to persons and families whose gross household income does not 2 exceed 150% of the median income for a family in this state or 3 the median income for a family within the nonmetropolitan county 4 or metropolitan statistical area in which the housing project is 5 located, as determined by the authority, or to the elderly; and 6 not more than 50% of the dwelling units are available for occu- 7 pancy without regard to income. 8 (v) Beginning November 1, 1987, multifamily housing projects 9 in eligible distressed areas that meet the 20-50 OR 40-60 test 10 established in section 142 of the internal revenue code OF 1986 11 and, in addition, in whichnot more than 80% ofthe REMAINING 12 dwelling units are available for occupancy without regard to 13 income. 14 (vi) Social, recreational, commercial, or communal facili- 15 ties necessary to serve and improve the residential area in which 16 an authority-financed housing project is located or is planned to 17 be located thereby enhancing the viability ofsuchTHE 18 housing. 19 (b) Notwithstanding the provisions of this section, the 20 authority may establish by resolutionsuchhigher income limits 21asTHAT it considers necessary to achieve sustained occupancy 22 of a housing project financed under subsection (1)(a)(i), (ii), 23 (iii), (iv), or (v) if the authority determinesallBOTH of the 24 following: 25 (i) The owner of the housing project exercised reasonable 26 efforts to rent the dwelling units to persons and families whose 03268'99 ** 28 1 incomes did not exceed the income limitations originally 2 applicable. 3 (ii) ForanyAN annual period after the first tenant has 4 occupied the housing project, the owner of the housing project 5 has been unable to attain and sustain at least a 95% occupancy 6 level at the housing project. 7 (c) A loan under this section may be in an amount not to 8 exceed 90% of the project cost as approved by the authority. For 9 purposes of this section, the term "project cost" includes all 10 items included in the definition of a project cost in section 11 11 and also includes a builder's fee equal to an amount up to 5% of 12 the amount of the construction contract, developer overhead 13 allowance and fee of 5% of the amount of the project cost, the 14 cost of furnishings, and a sponsor's risk allowance equal to 10% 15 of the project cost. A loan shall not be made under this section 16 unless a market analysis has been conducted that demonstrates a 17 sufficient market exists for the housing project. 18 (d) After November 1, 1987, the authority may continue to 19 finance multifamily housing projects for families or persons 20 whose incomes do not exceed the limits provided in subsection 21 (1)(a)(ii) or (iii) or (1)(b), until funds derived from the pro- 22 ceeds of bonds or notes issued before November 2, 1987, for that 23 purpose, including the proceeds of prepayments or recovery pay- 24 ments with respect to these multifamily housing projects, have 25 been expended. Multifamily housing projects or single family 26 housing units in an eligible distressed areawhichTHAT are 27 financed by proceeds of notes or bonds issued before June 30, 03268'99 ** 29 1 1984, andwhichTHAT the authority has designated for occupancy 2 by persons and families without regard to income pursuant to this 3 act shall remain eligible for occupancy by families and persons 4 without regard to income until the authority's mortgage loan 5 issued with respect to these multifamily housing projects is 6 fully repaid. 7 (e) Notwithstanding the expiration of lending authority 8 under subsection (1)(a)(ii), (iii), (iv), or (v), multifamily 9 housing projects financed under those subparagraphs may continue 10 to remain eligible for occupancy by persons and families whose 11 incomes do not exceed the limits provided in those subparagraphs 12 or subsection (1)(b). 13 (f) For purposes of this subsection: 14 (i) "Gross household income" means gross income of a house- 15 hold as those terms are defined in rules of the authority. 16 (ii) "Median income for a family in this state" and "median 17 income for a family within the nonmetropolitan county or metro- 18 politan statistical area" mean those income levels as determined 19 by the authority. 20 (2) (a) The authority may make loans toanyA nonprofit 21 housing corporation, limited dividend housing corporation, mobile 22 home park corporation, or mobile home park association for the 23 construction or rehabilitation of housing units, including resi- 24 dential condominium units as defined in section 4 of the condo- 25 minium act, 1978 PA 59, MCL 559.104, for sale to individual pur- 26 chasers of low or moderate income or to individual purchasers 27 without regard to income when the housing units are located in an 03268'99 ** 30 1 eligible distressed area. The authority may make or purchase 2 loans to individual purchasers for the long-term financing of a 3 newly rehabilitated, newly constructed, or existing housing unit, 4 including a residential condominium unit as defined in section 4 5 of the condominium act, 1978 PA 59, MCL 559.104.For a loan for6a newly rehabilitated or newly constructed housing unit, includ-7ing a residential condominium unit, the borrower's family income8shall not exceed $41,700.00 on or before May 1, 1995, and9$43,575.00 after that date and the purchase price of the housing10unit shall not exceed $99,000.00.For unexpected cost increases 11 during construction or improvements to adapttheNEW OR 12 EXISTING property for use by disabled individuals, the authority 13 may increase the purchase price limit by an amount sufficient to 14 cover those cost increases, but not to exceed $3,500.00.For a15loan for an existing housing unit, including a residential condo-16minium unit, the borrower's family income shall not exceed17$41,700.00 on or before May 1, 1995, and $43,575.00 after that18date and the purchase price of the housing unit shall not exceed19$80,000.00. For costs for improvements to adapt an existing20housing unit for use by disabled individuals, the authority may21increase the purchase price limit by an amount sufficient to22cover those cost increases, but not to exceed $3,500.00.If an 23 income or purchase price limit prescribed by this subsection 24 exceeds an applicable limit prescribed by the internal revenue 25 code OF 1986, the internal revenue code OF 1986 limit applies. 26 Except with respect to newly constructed housing units, the 27 authority mayat any timeby resolution establish, foranyA 03268'99 ** 31 1 length of time it considers appropriate, maximum borrower income 2 or purchase price limits more restrictive than those maximum lim- 3 itations set forth in this section. The authority shall advise 4 the appropriate house and senate standing committees 5 days prior 5 to the adoption of a resolution establishing more restrictive 6 maximum borrower income or purchase price limits. Before making 7anyA loan under this section, authority staff shall determine 8 that the borrower has the ability to repay the loan. A loan made 9 or purchased to finance the acquisition of an existing housing 10 unit may include funds for rehabilitation. A loan under this 11 section may be in an amount not to exceed 100% of the project 12 cost as approved by the authority in the case of a nonprofit 13 housing corporation or individual purchaser, and in an amount not 14 to exceed 90% of the project cost as approved by the authority in 15 the case of a limited dividend housing corporation, mobile home 16 park corporation, or mobile home park association.The limits17on purchase price prescribed by this subsection are effective18retroactively as of October 29, 1993.TO QUALIFY FOR A SINGLE 19 FAMILY LOAN, THE PURCHASE PRICE SHALL NOT EXCEED $99,000.00 FOR 20 AN EXISTING HOUSING UNIT OR $120,000.00 FOR A NEW HOUSING UNIT, 21 WHICH LIMITS INCREASE INITIALLY ON MARCH 1, 2001, AND THEN ON 22 EACH FOLLOWING MARCH 1, AT A RATE OF 5%, COMPOUNDED ANNUALLY. TO 23 QUALIFY FOR RECEIPT OF A SINGLE FAMILY LOAN, THE BORROWER'S 24 FAMILY INCOME SHALL NOT EXCEED THE FOLLOWING: 25 (i) FOR A UNIT LOCATED IN A METROPOLITAN COUNTY, 100% OF THE 26 STATEWIDE MEDIAN FAMILY INCOME. 03268'99 ** 32 1 (ii) FOR A UNIT LOCATED IN A NONMETROPOLITAN COUNTY, 2 $43,575.00, UNTIL THE UNITED STATES DEPARTMENT OF HOUSING AND 3 URBAN DEVELOPMENT'S PUBLISHED NONMETROPOLITAN COUNTY MEDIAN 4 FAMILY INCOME EXCEEDS $43,575.00. TO QUALIFY FOR A SINGLE FAMILY 5 LOAN AFTER THAT TIME, THE BORROWER'S FAMILY INCOME SHALL NOT 6 EXCEED 100% OF THE NONMETROPOLITAN COUNTY MEDIAN FAMILY INCOME. 7 (b) While a loan under this subsection is outstanding,any8 A sale by a nonprofit housing corporation or limited dividend 9 housing corporation oranyA subsequent resale is subject to 10 approval by the authority. The authority shall provide in its 11 rules concerning these sales and resales that the price of the 12 housing unit sold, the method of making payments after the sale, 13 the security afforded, and the interest rate, fees, and charges 14 to be paid shall at all times be sufficient to permit the author- 15 ity to make the payments on its bonds and notes and to meet 16 administrative or other costs of the authority in connection with 17 the transactions. Housing units shall be sold under terms that 18 provide for monthly payments including principal, interest, 19 taxes, and insurance. 20 (c) While a loan under this subsection is outstanding, the 21 authority, before the approval of sale by a nonprofit housing 22 corporation, limited dividend housing corporation, mobile home 23 park corporation, or mobile home park association, shall satisfy 24 itself that the sale is to persons of low or moderate income if 25 the housing unit is not located in an eligible distressed area, 26 or to persons without regard to income if the housing unit is 27 located in an eligible distressed area. 03268'99 ** 33 1 (d) Upon the sale by a nonprofit housing corporation, 2 limited dividend housing corporation, mobile home park corpora- 3 tion, or mobile home park association ofanyA housing unit to 4 an individual purchaser of low or moderate income or to an indi- 5 vidual purchaser without regard to income if the unit is located 6 in an eligible distressed area under this subsection to whom a 7 loan is being made by the authority, the housing unit shall be 8 released from the mortgage running from the nonprofit housing 9 corporation, limited dividend housing corporation, mobile home 10 park corporation, or mobile home park association to the authori- 11 ty, and the mortgage shall be replaced as to the housing unit by 12 a mortgage running from the individual purchaser to the 13 authority. 14 (e) The authority shall encourage nonprofit housing corpora- 15 tions and limited dividend housing corporations engaged in con- 16 struction or rehabilitation under this subsection to utilize the 17 labor of prospective individual purchasers of low or moderate 18 income in the construction or rehabilitation of the housing units 19 involved. The value of the labor of the prospective purchasers 20 so utilized shall be used to reduce the project costs of the 21 housing units involved. 22 (f) In the construction of housing units to be sold to the 23 individual purchasers of low or moderate income at a price not to 24 exceed $12,000.00, the individual purchasers may be required to 25 perform, in a manner and under conditions to be specified by the 26 authority in its rules, a minimum number of hours of labor. The 27 value of the labor shall be credited to the purchase price. 03268'99 ** 34 1 (3) A loan shall be secured in a manner and be repaid in a 2 period, not exceeding 50 years, as may be determined by the 3 authority. A loan shall bear interest at a rate determined by 4 the authority. 5 (4) A person who, for purposes of securing a loan under this 6 act, misrepresents his or her income, including taking a leave of 7 absence from his or her employment for purposes of diminishing 8 his or her income, is not to be eligible for a loan under this 9 act. 10 Sec. 44a. (1) The authority may make, purchase, or partici- 11 pate in loans, grants, or deferred payment loans to persons and 12 families of low and moderate income to finance the rehabilitation 13 of residential real property designed for occupancy by not more 14 than411 familieswhichTHAT is owned or is being purchased 15 by 1 or more persons or families of low and moderate income and 16whichTHAT is for occupancy by persons or families of low and 17 moderate income. 18 (2) The authority, without regard to the income of the 19 owners or occupants of residential rental property, may make, 20 purchase, or participate in loans, grants, or deferred payment 21 loans for the rehabilitation of residential rental property to 22 persons or entities owning residential rental property located in 23 areas of chronic economic distress and moderate cost residential 24 rental property located elsewhere in this state. 25 (3) A loan under this section may be secured or unsecured as 26 determined by the authority. If the loan is unsecured, it shall 27 be accepted for insurance under title 1 of the national housing 03268'99 ** 35 1 act, CHAPTER 847, 48 STAT. 1246, 12 U.S.C. 1702, 1703, 1705, and 2 1706b to 1706d, or another federal or private insurance program 3 providing coverage at least equal to that provided by that title, 4 or the authority shall establish a reserve for losses on unin- 5 sured loans made under this section and shall deposit into that 6 reserve an amount equal to 5% of the principal amount of each 7 such uninsured loan on or before the making of the loan. Money 8 may be withdrawn by the authority from this reserve for applica- 9 tion as loan repayments in connection with loans that are 10 delinquent. In addition, upon repayment of a loan made, pur- 11 chased, or participated in under this section, the authority may 12 withdraw the amount deposited in the reserve in connection with 13 that loan, reduced byanyamounts withdrawn as loan repayments 14 in connection with the loan, and may apply the amounts to any of 15 the authority's programs and purposes.Any incomeINCOME or 16 interest earned by or increment to the reserve due to the invest- 17 ment of the money in the reserve may, atsuchTHE timesas18 DETERMINED BY the authority,shall determine,be transferred by 19 the authority to other funds or accounts of the authority and 20 applied to any of the corporate purposes of the authority. A 21 loan under this section shall bear interest at a rate and be 22 repaid in the period, not exceeding 20 years, asmay bedeter- 23 mined by the authority and under additional terms and conditions 24 asmay bedetermined by the authority. 25 (4) A deferred payment loan or grant may be secured or unse- 26 cured as determined by the authority, and shall be made under 27 additional terms and conditions determined by the authority. 03268'99 ** 36 1 (5) In recognition of the need for rehabilitation loans, 2 grants, and deferred payment loans in all geographic areas of the 3 state, the authority shall promulgate rules that provide for the 4 availability of loans, grants, and deferred payment loans on an 5 equitable basis to qualified applicants in all geographic areas 6 of this state. With respect to loans, grants, and deferred pay- 7 ment loans made pursuant to this section that are not based on 8 residency in a neighborhood selected under section 22a(5), eligi- 9 bility for loans, grants, or deferred payment loans shall not be 10 based upon the number of qualified applicants in the geographic 11 area in which the individual resides. 12 (6) For purposes of this section, persons and families of 13 low and moderate income means persons and families whose family 14 income does not exceed$41,700.00 on or before May 1, 1995, and15$43,575.00 after that date100% OF THE STATEWIDE MEDIAN FAMILY 16 INCOME. The authority mayat any timeby resolution establish, 17 foranyA length of time it considers appropriate, maximum 18 family income limits more restrictive than those maximum limita- 19 tions set forth in this section. The authority shall advise the 20 appropriate house and senate standing committees 5 days prior to 21 the adoption of a resolution establishing more restrictive maxi- 22 mum family income limits. 23 (7)For home improvement loans insured under title I of the24national housing act, theTHE maximum principal loan amounts FOR 25 HOME IMPROVEMENT LOANS, exclusive of finance charges, are as 26 follows: 03268'99 ** 37 1 (a) $25,000.00 for A residentialstructuresSTRUCTURE 2 containing 1 dwelling unit, UNLESS THE LOAN IS MADE IN 3 CONJUNCTION WITH ADDITIONAL MONEY PROVIDED BY A MUNICIPALITY OR 4 NONPROFIT COMMUNITY-BASED ORGANIZATION, IN WHICH CASE A LOAN FOR 5 A RESIDENTIAL STRUCTURE CONTAINING 1 DWELLING UNIT IS 6 $35,000.00. 7 (b)$12,000.00$15,000.00 per dwelling unit for A residen- 8 tialstructuresSTRUCTURE containing 2 to411 dwelling 9 units. 10 (8) A STRUCTURE IS NOT REQUIRED TO BE OF A MINIMUM AGE TO BE 11 ELIGIBLE FOR REHABILITATION UNDER THIS SECTION. 12 Sec. 46. The authority shall require that occupancy of 13 housing projects and residential real property assisted under 14 this act shall be open to all regardless of sex, race, religion, 15 color, national origin, age,ormarital status, FAMILIAL 16 STATUS, OR DISABILITY and that contractors and subcontractors 17 engaged in the construction of housing projects and lending 18 institutions engaged in making residential mortgages, shall take 19 affirmative action to assure an equal opportunity for employment 20 and borrowing. This section does not apply, with respect to the 21 ageprovisionAND FAMILIAL STATUS PROVISIONS only, to the sale, 22 rental, or lease of housing accommodations meeting the require- 23 ments of federal, state, or local housing programs for senior 24 citizens, or HOUSING accommodations otherwise intended, adver- 25 tised, designed, or operated, bona fide, for the purpose of pro- 26 viding housing accommodations for persons 55 years of age or 27 older. 03268'99 **