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HB-4540, As Passed House, June 25, 2026
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SUBSTITUTE FOR
HOUSE BILL NO. 4540
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending section 58c (MCL 125.1458c), as amended by 2008 PA 216.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 58c. (1) The authority shall expend money in the fund to 1
make grants, mortgage loans, or other loans to eligible applicants 2
as provided in this section to enable eligible applicants to 3
finance any of the following with respect to housing or home 4
ownership for low income, low-income, very low income, and low-5
income, extremely low income low-income, or middle-income 6
households: and with respect to projects located in a downtown area 7
or adjacent neighborhood: 8
(a) Acquisition of land and buildings. 9
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(b) Rehabilitation. 1
(c) New construction. 2
(d) Development and predevelopment costs. 3
(e) Preservation of existing housing. 4
(f) Community development projects, including, but not limited 5
to, infrastructure improvements, economic development projects, 6
blight elimination, or community facilities. 7
(g) Insurance. 8
(h) Operating and replacement reserves. 9
(i) Down payment assistance. 10
(j) Security deposit assistance. 11
(k) Foreclosure prevention and assistance. 12
(l) Individual development accounts established under the 13
individual or family development account program act, 2006 PA 513, 14
MCL 206.701 to 206.711.206.901 to 206.911. 15
(m) Activities related to ending homelessness. 16
(n) Assistance, including, but not limited to, support of 17
capacity building, local and regional planning, and housing 18
studies, to nonprofit organizations, community development 19
financial institutions, municipalities, and land bank fast track 20
authorities organized under the land bank fast track act, 2003 PA 21
258, MCL 124.751 to 124.774. 22
(o) Predatory lending prevention or relief. 23
(2) The authority shall may expend a portion of the fund for 24
housing for persons with physical or mental handicaps persons with 25
disabilities and persons people living in eligible distressed 26
areas. 27
(3) The authority may make a loan to an eligible applicant 28
from the fund at no interest or at below market interest rates, 29
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with or without security, and may make a loan for predevelopment 1
financing. 2
(4) The authority may provide assistance to eligible 3
applicants for housing units for very low income or low-income, 4
extremely low income low-income, or middle-income households within 5
multifamily housing that is occupied partly by very low income or 6
low-income, extremely low income low-income, or middle-income 7
households and partly by households that do not qualify as very low 8
income or low-income, extremely low income low-income, or middle-9
income households, subject to the rules promulgated by the 10
authority. 11
(5) The authority may expend money in the fund for all other 12
things necessary to achieve the objectives and purposes of the fund 13
or this chapter. 14
(6) When performing functions under this chapter, the 15
authority shall consider advice provided by the committee statewide 16
housing partnership council created under section 58e.by Executive 17
Order No. 2022-10. 18
Enacting section 1. This amendatory act does not take effect 19
unless all of the following bills of the 103rd Legislature are 20
enacted into law: 21
(a) House Bill No. 4539. 22
(b) House Bill No. 5101. 23