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HB-4539, As Passed House, June 25, 2026
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SUBSTITUTE FOR
HOUSE BILL NO. 4539
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending sections 58 and 58b (MCL 125.1458 and 125.1458b),
section 58 as amended by 2008 PA 216 and section 58b as amended by
2008 PA 244.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 58. (1) The definitions in section 11 apply to this 1
chapter unless otherwise provided in this chapter. 2
(2) As used in this chapter: 3
(a) "Adjacent neighborhood" means a residential area as 4
determined by the authority immediately adjoining or near a 5
downtown area within the same municipality. 6
(a) (b) "Adjusted household income" means that term as defined 7
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in rules of the authority. 1
(b) (c) "Downtown area" means an area where 20 or more 2
contiguous properties have been planned, zoned, or used for 3
commercial purposes for 50 or more years and where a majority of 4
the buildings are built adjacent to each other as determined by the 5
authority and up to the public right-of-way. In order to be a 6
downtown area, the area shall must contain a significant number of 7
multilevel, mixed use buildings, and property in the downtown area 8
must be owned by more than 3 private owners. 9
(c) (d) "Eligible applicant" means a not-for-profit 10
corporation, a for-profit corporation, a municipality, a land bank 11
fast track authority organized under the land bank fast track act, 12
2003 PA 258, MCL 124.751 to 124.774, or a partnership that is 13
approved by the authority and that is organized for the purpose of 14
developing and supporting affordable housing for low income, low-15
income, very low income, or low-income, extremely low incomelow-16
income, or middle-income households or projects located in a 17
downtown area or adjacent neighborhood.this state. 18
(d) (e) "Extremely low income household" "Extremely low-income 19
household" means a person, an individual, a family, or unrelated 20
persons individuals living together whose adjusted household income 21
is not more than 30% of the area median income, as determined by 22
the authority. 23
(e) (f) "Fund" means the Michigan housing and community 24
development fund created in section 58a. 25
(f) (g) "Low income household" "Low-income household" means a 26
person, an individual, a family, or unrelated persons individuals 27
living together whose adjusted household income is more than 50% 28
but not more than 60% of the area median income, as determined by 29
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the authority. 1
(g) "Middle-income household" means an individual, a family, 2
or unrelated individuals living together whose adjusted household 3
income is not more than 120% of the area median income, as 4
determined by the authority. 5
(h) "Mixed use buildings" means buildings that can be used for 6
more than 1 purpose, and in any combination, including, but not 7
limited to, residential housing combined with either commercial or 8
retail space. 9
(i) "Multifamily housing" means a building or buildings 10
providing housing to 2 or more households, none of which is owner 11
occupied. 12
(j) "Project" means those activities defined under section 13
58c. 14
(k) "Supportive housing" means a rental housing project in 15
which some or all of the units are targeted to people with 16
household incomes at or below 30% of area median income and that 17
provide services, either directly or contracted for, to those 18
people that include, but are not limited to, mental health, 19
substance abuse services, counseling services, and daily living 20
services. 21
(l) "Very low income household" "Very low-income household" 22
means a person, an individual, a family, or unrelated persons 23
individuals living together whose adjusted household income is not 24
more than 50% of the area median income, as determined by the 25
authority. 26
Sec. 58b. (1) The authority shall create and implement the 27
Michigan housing and community development program for the purpose 28
of developing and coordinating public and private resources to meet 29
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the housing needs of low income, low-income, very low income, and 1
low-income, extremely low incomelow-income, or middle-income 2
households and to finance projects located in a downtown area or 3
adjacent neighborhood in this state. 4
(2) The authority shall identify, select, and make financing 5
available to eligible applicants from money in the fund or from 6
money secured by the fund for housing for low income, low-income, 7
very low income, and low-income, extremely low incomelow-income, or 8
middle-income households and for projects located in a downtown 9
area or adjacent neighborhood. this state. This subsection does not 10
preclude the authority from using other resources in conjunction 11
with the fund for a purpose authorized under this chapter. 12
(3) The authority shall develop a biennial allocation plan 13
providing for the allocation of money from the fund, according to 14
all of the following: 15
(a) The allocation plan shall must contain a formula for 16
distributing money throughout the this state based on the number of 17
persons experiencing poverty, economic, and housing distress, the 18
number of persons with disabilities, and the number of accessible 19
housing units in various regions of the this state. 20
(b) The allocation plan shall include a preference for special 21
population groups described in section 58c(2). 22
(c) Not less than 25% of the fund shall be earmarked for 23
rental housing projects that do not qualify under preferences for 24
special population groups or other preferences contained in the 25
allocation plan. 26
(d) Not less than 30% of the fund shall be earmarked for 27
projects that target extremely low income households and include at 28
a minimum developing housing for the homeless, supportive housing, 29
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transitional housing, and permanent housing. 1
(e) A rental housing project assisted by the fund must set 2
aside at least 20% of the rental units included in the project for 3
households earning no more than 60% of the area median income. 4
(f) A home ownership project assisted by the fund must set 5
aside at least 20% of the housing units in the project for 6
households earning no more than 60% of the area median income. 7
(b) The allocation plan must consider the availability and 8
adequacy of funds from other sources to address the housing needs 9
of persons with disabilities and low-income, very low-income, 10
extremely low-income, or middle-income households. 11
(c) (g) Money that has not been committed at the end of a 12
fiscal year shall must not be carried over in the category to which 13
the money had been allocated during that fiscal year, but shall 14
must be reallocated for the next fiscal year according to the next 15
fiscal year's allocation plan. 16
(4) (5) Prior to Before developing the biennial allocation 17
plan, the authority shall hold public hearings in at least 3 18
separate locations in this state regarding the content of the 19
biennial allocation plan. The authority must provide an option for 20
virtual participation by members of the public in all public 21
meetings and employ additional methods to gather public comment. 22
The alternative methods must focus on engagement with persons with 23
disabilities, people with limited English proficiency, and people 24
from low-income, very low-income, extremely low-income, or middle-25
income households. The authority may make modifications to the 26
allocation plan necessary to facilitate the administration of the 27
Michigan housing and community development program or to address 28
unforeseen circumstances. 29
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(5) (6) The authority shall issue an annual report to the 1
governor and the legislature summarizing the expenditures of the 2
fund for the prior fiscal year including at a minimum a description 3
of the eligible applicants that received funding, the number of 4
housing units that were produced, the income levels of the 5
households that were served, and the number of homeless persons 6
served. , and the number of downtown areas and adjacent 7
neighborhoods that receive financing.The authority shall make the 8
annual report required under this subsection available to the 9
public on the authority's internet website. 10
(6) (7) The authority may promulgate rules under the 11
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 12
24.328, to implement this chapter. 13
Enacting section 1. This amendatory act does not take effect 14
unless all of the following bills of the 103rd Legislature are 15
enacted into law: 16
(a) House Bill No. 4540. 17
(b) House Bill No. 5101. 18