SENATE BILL No. 524

 

 

May 28, 2003, Introduced by Senators BIRKHOLZ, BERNERO, BRATER, GARCIA, GOSCHKA, HARDIMAN and ALLEN and referred to the Committee on Local, Urban and State Affairs.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to establish the Michigan housing and community                            

                                                                                

    development fund in the department of treasury; to provide for              

                                                                                

    the administration of the fund; to provide for the deposit of               

                                                                                

    certain money in that fund; to provide for the distribution of              

                                                                                

    the money in that fund and to limit the use of the money in that            

                                                                                

    fund; and to prescribe the powers and duties of certain state               

                                                                                

    officials.                                                                  

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  This act shall be known and may be cited as the                    

                                                                                

2   "Michigan housing and community development fund act".                      

                                                                                

3       Sec. 2.  As used in this act:                                               

                                                                                

4       (a) "Authority" means the Michigan state housing development                

                                                                                

5   authority created in section 21 of the state housing development            

                                                                                

6   authority act of 1966, 1966 PA 346, MCL 125.1421.                           

                                                                                

7       (b) "Department" means the department of treasury.                          


                                                                                

1       (c) "Eligible applicant" means that term as defined in                      

                                                                                

2   section 58 of the Michigan state housing development authority              

                                                                                

3   act of 1966, 1966 PA 346, MCL 125.1458.                                     

                                                                                

4       (d) "Low income household", "very low income household", and                

                                                                                

5   "extremely low income household" mean those terms as defined in             

                                                                                

6   section 58 of the Michigan state housing development authority              

                                                                                

7   act of 1966, 1966 PA 346, MCL 125.1458.                                     

                                                                                

8       (e) "Michigan housing and community development fund" or                    

                                                                                

9   "fund" means the Michigan housing and community development fund            

                                                                                

10  created in section 3.                                                       

                                                                                

11      Sec. 3.  (1) The Michigan housing and community development                 

                                                                                

12  fund is created as a separate fund in the department.                       

                                                                                

13      (2) The fund shall be administered by the authority, and                    

                                                                                

14  money in the fund shall be expended only as provided in this                

                                                                                

15  act.                                                                        

                                                                                

16      (3) The department shall credit to the fund all amounts                     

                                                                                

17  appropriated for the purposes under this act and any money                  

                                                                                

18  received as contributions for purposes under this act.                      

                                                                                

19      (4) The state treasurer shall invest the money in the fund                  

                                                                                

20  and credit the earnings from the investments to the fund.                   

                                                                                

21      (5) Money appropriated or money received as a contribution to               

                                                                                

22  the fund shall be available for disbursement upon appropriation.            

                                                                                

23      Sec. 4.  Notwithstanding another allocation or disbursement,                

                                                                                

24  an amount equal to the cumulative contribution made to the fund,            

                                                                                

25  less an amount appropriated to the department for the purpose of            

                                                                                

26  implementing this act, shall be deposited in the fund and shall             

                                                                                

27  be appropriated annually solely for the purpose of the fund.                


                                                                                

1       Sec. 5.  (1) Money in the fund shall be allocated to                        

                                                                                

2   eligible applicants for housing projects if the eligible                    

                                                                                

3   applicant has conducted a market study or review to ensure that             

                                                                                

4   there is a demand and need for the housing project proposed.                

                                                                                

5       (2) Housing developed with money from the fund shall be                     

                                                                                

6   consistent in nature with housing already provided in the area to           

                                                                                

7   be developed.                                                               

                                                                                

8       (3) The authority shall encourage housing projects that are                 

                                                                                

9   part of a planned community revitalization strategy.                        

                                                                                

10      Sec. 6.  (1) Money from the fund shall be used to provide                   

                                                                                

11  grants, mortgage loans, and other loans including, but not                  

                                                                                

12  limited to, construction loans, bridge loans, and predevelopment            

                                                                                

13  loans to provide housing for low income, very low income, and               

                                                                                

14  extremely low income households.                                            

                                                                                

15      (2) Money from the fund may be used to provide single-family                

                                                                                

16  or multifamily housing.                                                     

                                                                                

17      (3) A portion of the allocation each year, as determined by                 

                                                                                

18  the authority, shall be used to provide housing for all of the              

                                                                                

19  following:                                                                  

                                                                                

20      (a) Homeless persons.                                                       

                                                                                

21      (b) Persons with physical and mental disabilities.                          

                                                                                

22      (c) Persons living in distressed or rural areas.                            

                                                                                

23      (4) Money in the fund may be used according to the provisions               

                                                                                

24  of section 58c(1) of the Michigan state housing development                 

                                                                                

25  authority act of 1966, 1966 PA 346, MCL 125.1458c.                          

                                                                                

26      Sec. 7.  (1) The authority shall develop annual priorities                  

                                                                                

27  based on the allowable purposes under section 6 and allocate the            


                                                                                

1   money in the fund based upon those priorities.                              

                                                                                

2       (2) Each year, the authority shall hold public hearings in at               

                                                                                

3   least 3 separate locations throughout this state on the                     

                                                                                

4   priorities and draft allocation plan for the upcoming year.                 

                                                                                

5       Sec. 8.  (1) The authority shall develop an allocation plan                 

                                                                                

6   each year based on the annual priorities developed under                    

                                                                                

7   section 7 that includes, but is not limited to, how the authority           

                                                                                

8   will identify, select, and make financing available to applicants           

                                                                                

9   to develop fundable projects.  The plan shall include how the               

                                                                                

10  authority will allocate money to provide technical assistance to            

                                                                                

11  eligible applicants.                                                        

                                                                                

12      (2) The allocation plan shall include all of the following:                 

                                                                                

13      (a) A list of the organizations and types of organizations                  

                                                                                

14  eligible to receive money from the fund.                                    

                                                                                

15      (b) Any preference for identified special population groups.                

                                                                                

16      (c) Any geographic targeting in designated revitalization                   

                                                                                

17  areas including, but not limited to, the authority's neighborhood           

                                                                                

18  preservation program areas, renaissance zones, federally                    

                                                                                

19  designated empowerment and enterprise zones, and community or               

                                                                                

20  homeownership zones.                                                        

                                                                                

21      (d) The allocation funding formula as prescribed in                         

                                                                                

22  subsection (3).                                                             

                                                                                

23      (3) The authority shall determine a formula for allocating                  

                                                                                

24  money throughout the state using all of the following factors:              

                                                                                

25      (a) The number of persons in poverty in a geographic area.                  

                                                                                

26      (b) The level of housing distress in a geographic area.                     

                                                                                

27      (c) Any other factor that supports the need for affordable                  


                                                                                

1   housing as determined by the authority and included in the                  

                                                                                

2   allocation plan.                                                            

                                                                                

3       Sec. 9.  Any balance remaining in the fund at the end of any                

                                                                                

4   fiscal year shall not revert to the general fund but shall remain           

                                                                                

5   in the fund and continue to be available for the purposes                   

                                                                                

6   authorized in this act.                                                     

                                                                                

7       Enacting section 1.  This act does not take effect unless                   

                                                                                

8   Senate Bill No. 522                                                         

                                                                                

9                     of the 92nd Legislature is enacted into law.