April 24, 2007, Introduced by Rep. Tobocman and referred to the Committee on New Economy and Quality of Life.
A bill to amend 2004 PA 479, entitled
"Michigan housing and community development fund act,"
by amending sections 2, 3, 5, 6, and 8 (MCL 125.2822, 125.2823,
125.2825, 125.2826, and 125.2828).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Authority" means the Michigan state housing development
authority created in section 21 of the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1421.
(b) "Department" means the department of treasury.
(c) "Eligible applicant" means that term as defined in section
58 of the Michigan state housing development authority act of 1966,
1966 PA 346, MCL 125.1458.
(d)
"Low income household", "very low income household", and
"extremely low income household", and "downtown area" mean those
terms as defined in section 58 of the Michigan state housing
development authority act of 1966, 1966 PA 346, MCL 125.1458.
(e) "Michigan housing and community development fund" or
"fund" means the Michigan housing and community development fund
created in section 3.
Sec. 3. (1) The Michigan housing and community development
fund is created as a separate fund in the department.
(2) The fund shall be administered by the authority, and money
in the fund shall be expended only as provided in this act.
(3) The department shall credit to the fund all amounts
appropriated from restricted revenues for the purposes under this
act. and
any money received as contributions for purposes under
this
act.
(4)
The state treasurer shall invest the money in the fund and
credit
the earnings from the investments to the fund.
(4) (5)
Money appropriated or money
received as a contribution
under this section to the fund shall be available for disbursement
upon appropriation.
Sec.
5. (1) Money in the fund shall be allocated to eligible
applicants
for housing projects if the eligible applicant has
conducted
a market study or review to ensure that there is a demand
and
need for the housing project proposed.
(2)
Housing developed with money from the fund shall be
consistent
in nature with housing already provided in the area to
be
developed.
(3)
The authority shall encourage housing
projects that are
part of a planned community revitalization strategy.
Sec. 6. (1) Money from the fund shall be used to provide
grants, mortgage loans, and other loans including, but not limited
to, construction loans, bridge loans, and predevelopment loans to
provide housing for low income, very low income, and extremely low
income households and to provide for revitalization of downtown
areas.
(2)
Money from the fund may be used to provide single-family
or
multifamily housing.
(2) (3)
A portion of the allocation each
year, as determined
by the authority, shall be used to provide housing for all of the
following:
(a) Homeless persons.
(b) Persons with physical and mental disabilities.
(c) Persons living in distressed or rural areas.
(3) (4)
Money in the fund may be used
according to the
provisions of section 58c(1) of the Michigan state housing
development authority act of 1966, 1966 PA 346, MCL 125.1458c.
Sec. 8. (1) The authority shall develop an allocation plan
each year based on the annual priorities developed under section 7
that includes, but is not limited to, how the authority will
identify, select, and make financing available to applicants to
develop fundable projects. The plan shall include how the authority
will allocate money to provide technical assistance to eligible
applicants.
(2) The allocation plan shall include all of the following:
(a) A list of the organizations and types of organizations
eligible to receive money from the fund.
(b) Any preference for identified special population groups.
(c) Any geographic targeting in designated revitalization
areas including, but not limited to, the authority's neighborhood
preservation program areas, renaissance zones, federally designated
empowerment and enterprise zones, and community or homeownership
zones.
(d) The allocation funding formula as prescribed in subsection
(3).
(3) The authority shall determine a formula for allocating
money throughout the state using all of the following factors:
(a) The number of persons in poverty in a geographic area.
(b)
The level of housing distress in a geographic area.
(c) Any other factor that supports the need for affordable
housing and revitalization of downtown areas as determined by the
authority and included in the allocation plan.