June 12, 2018, Introduced by Reps. Chang, Peterson, LaGrand, Gay-Dagnogo, Wittenberg, Hoadley, Pagan, Geiss, Green, Elder, Garrett, Howrylak and Rabhi and referred to the Committee on Local Government.
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending sections 11 and 17 (MCL 125.1411 and 125.1417), section
11 as amended by 2004 PA 549 and section 17 as amended by 1993 PA
221.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. As used in this act:
(a) "Authority" means the Michigan state housing development
authority created in this act.
(b) "Development costs" means the costs that have been
approved by the authority as appropriate expenditures, and
includes:
(i) Payments for options to purchase properties on the
proposed housing project site, deposits on contracts of purchase,
or, with the prior approval of the authority, payments for the
purchases of those properties.
(ii) Legal, organizational, and marketing expenses, including
payment of attorneys' fees, project manager and clerical staff
salaries, office rent, and other incidental expenses.
(iii) Payment of fees for preliminary feasibility studies,
advances for planning, engineering, and architectural work.
(iv) Expenses for surveys as to need, and market analyses.
(v) Necessary application and other fees to federal and other
government agencies.
(vi) Other expenses incurred by the nonprofit housing
corporation, consumer housing cooperative, limited dividend housing
corporation, mobile home park corporation, or mobile home park
association that the authority considers appropriate to effectuate
the purposes of this act.
(c) "Federally-aided mortgage" means any of the following:
(i) A below market interest rate mortgage insured, purchased,
or held by the secretary of the department of housing and urban
development.
(ii) A market interest rate mortgage insured by the secretary
of the department of housing and urban development and augmented by
a program of rent supplements.
(iii) A mortgage receiving interest reduction payments
provided by the secretary of the department of housing and urban
development.
(iv) A mortgage on a housing project to which the authority
allocates low income housing tax credits under section 22b.
(v) A mortgage receiving special benefits under other federal
law designated specifically to develop low and moderate income
housing, consistent with this act.
(d) "Fund" means the housing development fund created by this
act.
(e) "Project cost" means the sum total of all reasonable or
necessary costs incurred by the nonprofit housing corporation,
consumer housing cooperative, limited dividend housing corporation,
mobile home park corporation, or mobile home park association for
carrying out all works and undertakings for the completion of a
housing project and approved by the authority. In addition to other
reasonable and necessary costs, "project costs" includes costs for
all of the following: studies and surveys; plans, specifications,
and architectural and engineering services; legal, organization,
marketing, or other special services; financing, acquisition,
demolition, construction, equipment, and site development of new
and rehabilitated buildings; movement of existing buildings to
other sites; rehabilitation, reconstruction, repair, or remodeling
of existing buildings; carrying charges during construction; the
cost of placement of tenants or occupants, and relocation services
in connection with a housing project; and, to the extent not
already included, all development costs.
(f) "Housing project" means any of the following:
(i) Residential real property developed or to be developed or
receiving benefits under this act.
(ii) A specific work or improvement either for rental or for
subsequent sale to an individual purchaser undertaken by a
nonprofit housing corporation, consumer housing cooperative,
limited dividend housing corporation, mobile home park corporation,
or
mobile home park association pursuant to under or receiving
benefits under this act to provide dwelling accommodations,
including the acquisition, construction, or rehabilitation of
lands, buildings, and improvements.
(iii) Social, recreational, commercial, and communal
facilities that the authority finds necessary to serve and improve
a residential area in which housing described in subparagraph (i)
or (ii) is located or is planned to be located, thereby enhancing
the viability of the housing.
(g) "Low income or moderate income persons" means families and
persons who cannot afford to pay the amounts at which private
enterprise, without federally-aided mortgages or loans from the
authority, is providing a substantial supply of decent, safe, and
sanitary housing and who fall within income limitations set in this
act or by the authority in its rules. Among low income or moderate
income persons, preference shall be given to the elderly and those
displaced by urban renewal, slum clearance, or other governmental
action.
(h) "Municipality" means a city, village, or township in this
state.
(i) "County" means a county within this state.
(j) "Governing body" means in the case of a city, the council
or commission of the city; in the case of a village, the council,
commission, or board of trustees of the village; in the case of a
township, the township board; and in the case of a county, the
county board of commissioners.
(k) "Nonprofit housing corporation" means a nonprofit
corporation incorporated under the corporation laws of this state
and chapter 4.
(l) "Consumer housing cooperative" means a nonprofit
corporation
incorporated pursuant to under
the corporation laws of
this state and chapter 5.
(m) "Annual shelter rent" means the total collections during
an agreed annual period from all occupants of a housing project
representing rent or occupancy charges, exclusive of charges for
gas, electricity, heat, or other utilities furnished to the
occupants.
(n) "Taxing jurisdiction" means a municipality, county, or
district, including a school district or any special district
having the power to levy or collect taxes upon real property or in
whose behalf taxes may be levied or collected.
(o)
"Elderly" means a single person individual who is 55 years
of age or older or a household in which at least 1 member is 55
years of age or older and all other members are 50 years of age or
older.
(p) "Housing development" means a development that contains a
significant element of housing for persons of low or moderate
income and elements of other housing and commercial, recreational,
industrial, communal, and educational facilities that the authority
determines improve the quality of the development as it relates to
housing for persons of low or moderate income.
(q) "Limited dividend housing corporation" means a corporation
incorporated
or qualified pursuant to under
the corporation laws of
this state and chapter 6 and a limited dividend housing association
organized
and qualified pursuant to under
chapter 7.
(r) "Residential real property" means real property located in
this state, used for residential purposes, and improved or to be
improved by a residential structure. Residential real property
includes a mobile home, a mobile home park, and a mobile home
condominium project. When the terms "rehabilitate" or
"rehabilitation" are used in conjunction with residential real
property, residential real property refers to property improved by
a residential structure.
(s) "Rehabilitation" means all or part of those repairs and
improvements necessary to make residential real property safe,
sanitary, or adequate.
(t) "Deferred payment loan" means a loan that is repayable or
partially repayable upon the occurrence of a specified event as
determined by the authority.
(u) "Eligible distressed area" means any of the following:
(i) An area located in a city with a population of at least
10,000 ,
which area that is either designated as a "blighted area"
by
a local legislative body pursuant to under 1945 PA 344, MCL
125.71
to 125.84, or which area that
is determined by the authority
to be blighted or largely vacant by reason of clearance of blight,
if, with respect to the area, the authority determines all of the
following:
(A)
That private Private enterprise has failed to provide a
supply of adequate, safe, and sanitary dwellings sufficient to meet
market demand.
(B)
That approval Approval of elimination of income limits
applicable in connection with authority loans has been received
from the city in the form of either a resolution adopted by the
highest legislative body of the city or, if the city charter
provides for the mayor to be elected at large with that office
specifically designated on the ballot, provides that the office of
mayor is a full-time position, and provides that the mayor has the
power to veto legislative actions of the legislative body of that
city, a written communication from the mayor of that city.
(ii) A municipality that meets all of the following
requirements:
(A) The municipality shows a negative population change from
1970 to the date of the most recent federal decennial census.
(B) The municipality shows an overall increase in the state
equalized value of real and personal property of less than the
statewide average increase since 1972.
(C) The municipality has a poverty rate, as defined by the
most recent federal decennial census, greater than the statewide
average.
(D) The municipality has had an unemployment rate higher than
the statewide average unemployment rate for 3 of the preceding 5
years.
(iii) An area located in a local unit of government certified
by the Michigan enterprise zone authority as meeting the criteria
prescribed in section 2(d) of the neighborhood enterprise zone act,
1992 PA 147, MCL 207.772.
(v) "Mobile home" means a structure, transportable in 1 or
more sections, that is built on a chassis and is designed to be
used as a dwelling with or without permanent foundation, when
connected to the required utilities, and includes the plumbing,
heating, air conditioning, and electrical systems contained in the
structure. Mobile home may, but need not, include the real property
to which the mobile home may be attached. Mobile home does not
include a recreational vehicle.
(w) "Mobile home condominium project" means a condominium
project in which mobile homes are intended to be located upon
separate sites that constitute individual condominium units and
that complies with the condominium act, 1978 PA 59, MCL 559.101 to
559.276.
(x) "Mobile home park" means a parcel or tract of land under
the control of a person or entity upon which 3 or more mobile homes
are located on a continual, nonrecreational, residential basis and
that is offered to the public for general public use for continual,
nonrecreational, residential purposes regardless of whether a
charge is made for that use, together with any social,
recreational, commercial, and communal facilities used or intended
for use incident to the occupancy of a mobile home. Mobile home
park does not include trailer parks and courts for use on a
transient basis.
(y) "Mobile home park association" means a mobile home park
association organized and qualified in accordance with chapter 9.
(z) "Mobile home park corporation" means a corporation
incorporated
pursuant to under the corporation laws of this state
and qualified in accordance with chapter 8.
(aa) "Housing unit" means living accommodations that are
intended for occupancy by up to 4 families, with a separate
dwelling unit for each family, that may be site constructed or may
be a mobile home or other form of manufactured housing, and with
respect to which either of the following applies:
(i) The owner of the housing occupies at least 1 of the
dwelling units.
(ii) A cooperative shareholder or member has a proprietary
lease of the housing unit.
(bb) "Moderate cost residential rental property" means
dwelling units for which the rental payments are equal to or less
than that established from time to time as the fair market rents
for existing housing in accordance with 1 of the following:
(i) The section 8 leased housing program established under
section 8 of the United States housing act of 1937, 42 USC 1437f,
and the regulations promulgated under that act, or a substantially
equivalent successor federal program.
(ii) A determination made by the authority of the average fair
market rent for existing rental property.
(cc) "Area of chronic economic distress" means an area that
qualifies as a "qualified census tract" or an "area of chronic
economic distress" as those terms are defined in former section
103A(k) of the internal revenue code, or an eligible distressed
area.
(dd) "Mortgage lender" means a state or national bank, state
or federal savings and loan association, mortgage company,
insurance company, state pension fund, or any other financial
institution, intermediary, or entity authorized to make mortgage
loans in this state.
(ee) "Authority-aided mortgage" means a mortgage made, held,
purchased, or assisted by the authority.
(ff) "Subsidiary nonprofit housing corporation" means an
entity created under section 22c.
(gg) "Family income" means all income that is included in a
determination of family income under section 143(f) of the internal
revenue code, 26 USC 143(f), together with the income of all adults
who
will reside in the residence , which income that might
otherwise be excluded from consideration because the individual was
not expected to both live in the residence and be primarily or
secondarily liable on the mortgage note.
(hh) "Statewide median gross income" means the statewide
median gross income as determined under section 143(f) of the
internal revenue code, 26 USC 143(f).
(ii) "Mutual housing association" means a corporation
organized in accordance with chapter 10.
(jj) "Internal revenue code" means the United States internal
revenue code of 1986.
(kk) "Internal revenue code of 1954" means the United States
internal revenue code of 1954 as in effect on the day immediately
before the effective date of the internal revenue code of 1986.
(ll) "Residential revitalization and conversion project" means
a project other than a project receiving benefits under this act
that improves residential real property and results in the
conversion of low-rent housing into housing that is leased at rates
equal to or greater than the average fair market rent for existing
rental property as determined by the authority.
Sec. 17. (1) The authority may provide to any organization or
person participating or intending to participate in the
development, design, or management of authority-assisted housing or
in the contracting or subcontracting of the construction or
rehabilitation of authority-assisted housing, such advisory,
consultative, technical, training, and educational services as will
assist them to more effectively provide authority-assisted housing.
Advisory and educational services may include but are not
necessarily limited to technical and professional planning
assistance, the preparation and promulgation of organizational
planning and development outlines and guides, consultation
services, training courses, seminars and lectures, the preparation
and dissemination of newsletters and other printed materials, and
the services of field representatives.
(2) The authority shall develop and distribute to the
municipalities of this state best practice guidelines for assessing
the needs of older adults who are displaced from their homes due to
a rise in the cost of housing that is the result of a residential
revitalization and conversion project in the municipality. The
authority shall provide technical assistance to the municipality in
developing and implementing the needs assessment described in this
subsection. The best practice guidelines shall include, but are not
limited to, guidelines for assessing the following areas as they
relate to the impact of displacement on an older adult:
(a) The older adult's contributions to his or her community.
(b) The older adult's existing support network.
(c) The older adult's physical and mental health needs.
(d) The older adult's financial and logistical needs.
(e) The older adult's emotional and spiritual needs.
(3) As used in this section, "older adult" means an adult who
is 55 years or older.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.