HB-5617, As Passed House, October 17, 2012HB-5617, As Passed Senate, October 17, 2012
May 10, 2012, Introduced by Reps. Zorn, Shaughnessy and Wayne Schmidt and referred to the Committee on Commerce.
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending section 44a (MCL 125.1444a), as amended by 2004 PA 549.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 44a. (1) The authority may make, purchase, or participate
in loans, grants, or deferred payment loans to persons and families
of low and moderate income to finance the rehabilitation of
residential real property designed for occupancy by not more than
24 families that is owned or is being purchased by 1 or more
persons or families of low and moderate income and that is for
occupancy by persons or families of low and moderate income.
(2) The authority, without regard to the income of the owners
or occupants of residential rental property, may make, purchase, or
participate in loans, grants, or deferred payment loans for the
rehabilitation of residential rental property to persons or
entities owning residential rental property located in areas of
chronic
economic distress and or moderate cost residential rental
property located elsewhere in this state.
(3) A loan under this section may be secured or unsecured as
determined by the authority. If the loan is unsecured, it shall be
accepted for insurance under title 1 of the national housing act,
12
USC 1702 , 1703, 1705, and 1706b to 1706d, to 1706f, or another
federal or private insurance program providing coverage at least
equal to that provided by that title, or the authority shall
establish a reserve for losses on uninsured loans made under this
section and shall deposit into that reserve an amount equal to 5%
of the principal amount of each such uninsured loan on or before
the making of the loan. Money may be withdrawn by the authority
from this reserve for application as loan repayments in connection
with loans that are delinquent. In addition, upon repayment of a
loan made, purchased, or participated in under this section, the
authority may withdraw the amount deposited in the reserve in
connection with that loan, reduced by amounts withdrawn as loan
repayments in connection with the loan, and may apply the amounts
to
any of the authority's programs and corporate purposes. Income
or interest earned by or increment to the reserve due to the
investment of the money in the reserve may, at the times determined
by the authority, be transferred by the authority to other funds or
accounts of the authority and applied to any of the authority's
corporate
purposes. of the authority. A loan under this section
shall bear interest at a rate and be repaid in the period, not
exceeding
20 30 years, as determined by the authority and under
additional terms and conditions as determined by the authority.
(4) A deferred payment loan or grant may be secured or
unsecured as determined by the authority, and shall be made under
additional terms and conditions determined by the authority.
(5)
In recognition of the need for rehabilitation loans,
grants,
and deferred payment loans in all geographic areas of the
state,
the The authority shall promulgate rules that provide for
the availability of loans, grants, and deferred payment loans on an
equitable basis to qualified applicants in all geographic areas of
this state. With respect to loans, grants, and deferred payment
loans made pursuant to this section that are not based on residency
in
a neighborhood selected under pursuant
to section 22a(5),
eligibility for loans, grants, or deferred payment loans shall not
be based upon the number of qualified applicants in the geographic
area in which the individual resides.
(6) For purposes of this section, persons and families of low
and moderate income means persons and families whose family income
does
not exceed the following:175%
of the statewide median gross
income as determined under section 143 of the internal revenue
code, 26 USC 143.
(a)
For eligible distressed areas, $69,800.00 until June 1,
2006,
$72,250.00 until November 1, 2007, and $74,750.00 on and
after
November 1, 2007.
(b)
For any other area, $60,700.00 until June 1, 2006,
$62,800.00
until November 1, 2007, and $65,000.00 on and after
November
1, 2007.
(7)
The maximum principal loan amounts for home improvement
residential property rehabilitation loans, exclusive of finance
charges, are as follows:
(a) $50,000.00 for a residential structure containing 1
dwelling
unit. , unless the loan is made in conjunction with
additional
money provided by a municipality or nonprofit community-
based
organization, in which case a loan for a residential
structure
containing 1 dwelling unit is $35,000.00.
(b) $25,000.00 per dwelling unit for a residential structure
containing 2 to 24 dwelling units.
(8) A structure is not required to be of a minimum age to be
eligible for rehabilitation under this section.