Read the full stored bill text
KAS S05193'25_SB0923_INTR_1 i6gpn5
SENATE BILL NO. 923
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending section 22 (MCL 125.1422), as amended by 2012 PA 327,
and by adding section 22e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 22. The authority possesses all powers necessary or 1
convenient to carry out this act, including the following powers in 2
addition to other powers granted by other provisions of this act: 3
(a) To sue and to be sued; to have a seal and to alter the 4
April 23, 2026, Introduced by Senators CHANG, SINGH and DAMOOSE and referred to
Committee on Economic and Community Development.
2
KAS S05193'25_SB0923_INTR_1 i6gpn5
seal at pleasure; to have perpetual succession; to make and execute 1
contracts and other instruments necessary or convenient to the 2
exercise of the powers of the authority; and to make, amend, and 3
repeal bylaws and rules. 4
(b) To undertake and carry out studies and analyses of housing 5
needs within this state and ways of meeting those needs, including 6
data with respect to population and family groups, the distribution 7
of population and family groups according to income, and the amount 8
and quality of available housing and its distribution according to 9
rentals and sales prices, employment, wages, and other factors 10
affecting housing needs and the meeting of housing needs; to make 11
the results of those studies and analyses available to the public 12
and the housing and supply industries; and to engage in research 13
and disseminate information on housing. 14
(c) To agree and comply with conditions attached to federal 15
financial assistance. 16
(d) To survey and investigate housing conditions and needs, 17
both urban and rural, throughout this state and make 18
recommendations to the governor and the legislature regarding 19
legislation and other measures necessary or advisable to alleviate 20
any existing housing shortage in this state. 21
(e) To establish and collect fees and charges in connection 22
with the sale of the authority's publications and the authority's 23
loans, commitments, and servicing, including, but not limited to, 24
the reimbursement of costs of financing by the authority, service 25
charges, and insurance premiums as the authority determines to be 26
reasonable and as approved by the authority. Fees and charges shall 27
must be determined by the authority and shall are not be considered 28
to be interest. The authority may use any accumulated fees and 29
3
KAS S05193'25_SB0923_INTR_1 i6gpn5
charges and interest income for achieving any of the corporate 1
purposes of the authority, to the extent that the fees, charges, 2
and interest income are not pledged to the repayment of bonds and 3
notes of the authority or the interest on those bonds and notes. 4
(f) To encourage community organizations to assist in 5
initiating housing projects as provided in this act. 6
(g) To encourage the salvage of all possible usable housing 7
scheduled for demolition because of highway, school, urban renewal, 8
or other programs by seeking authority for the sponsors of the 9
programs to use funds provided for the demolition of the buildings, 10
to be allocated to those sponsors approved by the authority to 11
defray moving and rehabilitation costs of the buildings. 12
(h) To engage and encourage research in, and to formulate 13
demonstration projects to develop, new and better techniques and 14
methods for increasing the supply of housing for persons eligible 15
for assistance as provided in this act; and to provide technical 16
assistance in the development of housing projects and in the 17
development of programs to improve the quality of life for all the 18
people of this state. 19
(i) To make or purchase loans, including loans for condominium 20
units as that term is defined in section 4 of the condominium act, 21
1978 PA 59, MCL 559.104, and including loans to mortgage lenders , 22
which that are unsecured or the repayments of which are secured by 23
mortgages, security interests, or other forms of security; to 24
purchase and enter into commitments for the purchase of securities, 25
certificates of deposits, time deposits, or mortgage loans from 26
mortgage lenders; to participate in the making or purchasing of 27
unsecured or secured loans and undertake commitments to make or 28
purchase unsecured or secured loans; to sell mortgages, security 29
4
KAS S05193'25_SB0923_INTR_1 i6gpn5
interests, notes, and other instruments or obligations evidencing 1
or securing loans, including certificates evidencing interests in 1 2
or more loans, at public or private sale; in connection with the 3
sale of an instrument or obligation evidencing or securing 1 or 4
more loans, to service, guarantee payment on, or repurchase the 5
instrument or obligation, whether or not it is in default; to 6
modify or alter mortgages and security interests; to foreclose on 7
any mortgage, security interest, or other form of security; to 8
finance housing units; to commence an action to protect or enforce 9
a right conferred upon the authority by law, mortgage, security 10
agreement, contract, or other agreement; to bid for and purchase 11
property that was the subject of the mortgage, security interest, 12
or other form of security, at a foreclosure or at any other sale, 13
and to acquire or take possession of the property. Upon acquiring 14
or taking possession of the property, the authority may complete, 15
administer, and pay the principal and interest of obligations 16
incurred in connection with the property, and may dispose of and 17
otherwise deal with the property in any manner necessary or 18
desirable to protect the interests of the authority in the 19
property. If the authority or an entity that provides mortgage 20
insurance to the authority acquires property upon on the default of 21
a borrower, the authority may make a mortgage loan to a subsequent 22
purchaser of that property even if the purchaser does not meet 23
otherwise applicable income limitations and purchase price limits. 24
(j) To set standards for housing projects that receive loans 25
under this act and to provide for inspections to determine 26
compliance with those standards. The standards for construction and 27
rehabilitation of mobile homes, mobile home parks, and mobile home 28
condominium projects shall must be established jointly by the 29
5
KAS S05193'25_SB0923_INTR_1 i6gpn5
authority and the mobile home commission, created in section 3 of 1
the mobile home commission act, 1987 PA 96, MCL 125.2303. However, 2
financing Financing standards shall must be established solely by 3
the authority. 4
(k) To accept gifts, grants, loans, appropriations, or other 5
aid from the federal, state, or local government, from a 6
subdivision, agency, or instrumentality of a federal, state, or 7
local government, or from a person, corporation, firm, or other 8
organization. 9
(l) To acquire or contract to acquire from a person, firm, 10
corporation, municipality, or federal or state agency, by grant, 11
purchase, or otherwise, leaseholds or real or personal property, or 12
any interest in a leasehold or real or personal property; to own, 13
hold, clear, improve, and rehabilitate and to sell, assign, 14
exchange, transfer, convey, lease, mortgage, or otherwise dispose 15
of or encumber any interest in a leasehold or real or personal 16
property. This act shall does not impede the operation and effect 17
of local zoning, building, and housing ordinances, ordinances 18
relating to subdivision control, land development, or fire 19
prevention, or other ordinances having to do with housing or the 20
development of housing. 21
(m) To procure insurance against any loss in connection with 22
the property and other assets of the authority. 23
(n) To invest, at the discretion of the authority, funds held 24
in reserve or sinking funds, or money not required for immediate 25
use or disbursement, in obligations of this state or of the United 26
States, in obligations the principal and interest of which are 27
guaranteed by this state or the United States, or in other 28
obligations as may be approved by the state treasurer. 29
6
KAS S05193'25_SB0923_INTR_1 i6gpn5
(o) To promulgate rules necessary to carry out the purposes of 1
this act and to exercise the powers expressly granted in this act 2
pursuant to under the administrative procedures act of 1969, 1969 3
PA 306, MCL 24.201 to 24.328. 4
(p) To enter into agreements with nonprofit housing 5
corporations, consumer housing cooperatives, limited dividend 6
housing corporations, mobile home park corporations, and mobile 7
home park associations that provide for regulation by the authority 8
of the planning, development, and management of any housing project 9
undertaken by nonprofit housing corporations, consumer housing 10
cooperatives, limited dividend housing corporations, mobile home 11
park corporations, and mobile home park associations and that 12
provide for the disposition of the property and franchises of those 13
corporations, cooperatives, and associations. 14
(q) To appoint to the board of directors of a nonprofit 15
housing corporation, consumer housing cooperative, limited dividend 16
housing corporation, mobile home park corporation, or mobile home 17
park association, a number of new directors sufficient to 18
constitute a majority of the board notwithstanding other provisions 19
of the articles of incorporation or other provisions of law. 20
Directors appointed under this subsection need not be stockholders 21
or members or meet other qualifications that may be described by 22
the certificate of incorporation or bylaws. In the absence of fraud 23
or bad faith, directors appointed under this subsection shall not 24
be personally liable for debts, obligations, or liabilities of the 25
corporation or association. The authority may appoint directors 26
under this subsection only if 1 or more of the following occur: 27
(i) The nonprofit housing corporation, consumer housing 28
cooperative, limited dividend housing corporation, mobile home park 29
7
KAS S05193'25_SB0923_INTR_1 i6gpn5
corporation, or mobile home park association has received a loan or 1
advance, as provided for in this act, and the authority determines 2
that the loan or advance is in jeopardy of not being repaid. 3
(ii) The nonprofit housing corporation, consumer housing 4
cooperative, limited dividend housing corporation, mobile home park 5
corporation, or mobile home park association received a loan or 6
advance as provided for in this act and the authority determines 7
that the proposed housing project for which the loan or advance was 8
made is in jeopardy of not being constructed. 9
(iii) The authority determines that some any of the following 10
apply: 11
(A) Some part of the net income or net earnings of the 12
nonprofit housing corporation is inuring to the benefit of a 13
private individual, firm, corporation, partnership, or association. 14
; the authority determines that an 15
(B) An unreasonable part of the net income or net earnings of 16
the consumer housing cooperative is inuring to the benefit of a 17
private individual, firm, corporation, partnership, or association. 18
; or the authority determines that some 19
(C) Some part of the net income or net earnings of the limited 20
dividend housing corporation, in excess of that permitted by other 21
provisions of this act, is inuring to the benefit of a private 22
individual, firm, corporation, partnership, or association. 23
(iv) The authority determines that the nonprofit corporation or 24
consumer housing cooperative is in some manner controlled by, under 25
the direction of, or acting in the substantial interest of a 26
private individual, firm, corporation, partnership, or association 27
seeking to derive benefit or gain from, or seeking to eliminate or 28
minimize losses in any dealings or transactions with, the nonprofit 29
8
KAS S05193'25_SB0923_INTR_1 i6gpn5
corporation or consumer housing cooperative. However, this This 1
subparagraph shall apply applies to individual cooperators in 2
consumer housing cooperatives only in circumstances defined by the 3
authority in its rules. 4
(v) The authority determines that the nonprofit housing 5
corporation, consumer housing cooperative, limited dividend housing 6
corporation, mobile home park corporation, or mobile home park 7
association is in violation of the rules promulgated under this 8
section. 9
(vi) The authority determines that the nonprofit housing 10
corporation, consumer housing cooperative, limited dividend housing 11
corporation, mobile home park corporation, or mobile home park 12
association is in violation of 1 or more agreements entered into 13
with the authority that provide for regulation by the authority of 14
the planning, development, and management of a housing project 15
undertaken by the nonprofit housing corporation, consumer housing 16
cooperative, limited dividend housing corporation, mobile home park 17
corporation, or mobile home park association or that provide for 18
the disposition of the property and franchises of the corporation, 19
cooperative, or association. 20
(r) To give approval approve or consent to the any of the 21
following: 22
(i) The articles of incorporation submitted to the authority by 23
a corporation seeking approval as a nonprofit housing corporation, 24
consumer housing cooperative, limited dividend housing corporation, 25
or mobile home park corporation under chapter 4, 5, 6, or 8. ; to 26
give approval or consent to the 27
(ii) The partnership agreement, joint venture agreement, trust 28
agreement, or other document of basic organization of a limited 29
9
KAS S05193'25_SB0923_INTR_1 i6gpn5
dividend housing association under chapter 7 or mobile home park 1
association under chapter 9. 2
(s) To engage the services of private consultants on a 3
contract basis for rendering professional and technical assistance 4
and advice. 5
(t) To lease real or personal property and to accept federal 6
funds for, and participate in, federal programs of housing 7
assistance. 8
(u) To review and approve rental charges for authority-9
financed housing projects and require whatever changes the 10
authority determines to be necessary. The changes shall become are 11
effective after not less than 30 days' days after written notice is 12
given to the residents of the affected authority-financed housing 13
projects. 14
(v) To set forth in the various loan documents of the 15
authority those restrictions on the sale, conveyance by land 16
contract, or transfer of residential real property, housing 17
projects, or housing units for which a note is held by the 18
authority and restrictions on the assumption by subsequent 19
purchasers of loans originated by and held by, or originated for 20
purchase by and held by, the authority as the authority determines 21
to be necessary in order to comply with requirements of federal 22
statutes, federal rules or regulations promulgated under 5 USC 551 23
to 559, state statutes, or state rules promulgated under the 24
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 25
24.328, or to obtain and maintain the tax exempt status of 26
authority bonds and notes. However, the The authority shall not use 27
a due on sale or acceleration clause solely for the purpose of 28
renegotiating the interest rate on a loan made with respect to an 29
10
KAS S05193'25_SB0923_INTR_1 i6gpn5
owner-occupied single-family housing unit. Without limiting the 1
authority's power to establish other restrictions, as provided in 2
this section, on the sale, conveyance by land contract, or transfer 3
of residential real property, housing projects, or housing units 4
for which a note is held by the authority and the assumption by 5
subsequent purchasers of loans made or purchased by the authority, 6
the authority shall provide in its loan documents relating to a 7
single family loan that the single family loan may be assumed by a 8
new purchaser only when the new purchaser qualifies under the 9
authority income limitations rules, unless such a restriction 10
diminishes or precludes the insurance or a guarantee by an agency 11
of the federal government with respect to the single family loan. A 12
loan made for a mobile home that the borrower does not intend to 13
permanently affix to real property shall become is immediately due 14
and payable if the mobile home is moved out of the state. Any 15
restrictions on conveyance by sale, conveyance by land contract, or 16
transfer that are authorized in this section shall apply only to 17
loans originated by and held by, or originated for purchase by and 18
held by, the authority and may, at the option of the authority, be 19
enforced by accelerating and declaring immediately due and payable 20
all sums evidenced by the note held by the authority. An 21
acceleration and declaration of all sums to be due and payable on 22
conveyance by sale, land contract, or transfer is not an 23
unreasonable restraint on alienation. An acceleration and 24
declaration, unless otherwise prohibited in this subdivision, of 25
all sums to be due and payable under this subdivision is 26
enforceable in any court of competent jurisdiction. This 27
subdivision is applicable applies to secured and unsecured loans . 28
This subdivision is also applicable to and loan documents utilized 29
11
KAS S05193'25_SB0923_INTR_1 i6gpn5
in conjunction with an authority-operated program of residential 1
rehabilitation by an entity cooperating or participating with the 2
authority under section 22a(4), if the loans are originated with 3
the intent to sell those loans to the authority. 4
(w) To set forth in the various loan documents of the 5
authority remedies for the making of a false statement, 6
representation, or pretense or a material misstatement by a 7
borrower during the loan application process. Without limiting the 8
authority's power to pursue other remedies, the authority shall 9
provide in its loan documents that, if a borrower makes a false 10
statement, representation, or pretense or a material misstatement 11
during the loan application process, the authority, at its option, 12
may accelerate and declare immediately due and payable all sums 13
evidenced by the note held by the authority. An acceleration and 14
declaration of all sums to be due and payable as provided in this 15
subdivision is enforceable in any court of competent jurisdiction. 16
This subdivision is applicable applies to secured and unsecured 17
loans. 18
(x) To collect interest on a real estate loan, the primary 19
security for which is not a first lien on real estate, at the rate 20
of 15% or less per annum on the unpaid balance. This subdivision 21
does not impair the validity of a transaction or rate of interest 22
that is lawful without regard to notwithstanding this subdivision. 23
(y) To encourage and engage or participate in programs to 24
accomplish the preservation of housing in this state available for 25
occupancy by persons and families of low or moderate income. 26
(z) To verify for the state treasurer statements submitted by 27
a city, village, township, or county as to exempt properties under 28
section 7d of the general property tax act, 1893 PA 206, MCL 29
12
KAS S05193'25_SB0923_INTR_1 i6gpn5
211.7d. 1
(aa) For the purpose of more effectively managing its debt 2
service, to enter into an interest rate exchange or swap, hedge, or 3
similar agreement with respect to its bonds or notes on the terms 4
and payable from the sources and with the security, if any, as 5
determined by a resolution of the authority. 6
(bb) To make working capital loans to contractors or 7
subcontractors on housing projects financed by the authority. The 8
authority shall submit an annual report to the legislature 9
containing the amount, recipient, duration, circumstance, and other 10
related statistics for each capital loan made to a contractor or 11
subcontractor under this subdivision. The authority shall include 12
in the report statistics related to the cost of improvements made 13
to adapt property for use by disabled individuals as provided in 14
section 32b or 44. 15
(cc) Subject to rules of the civil service commission, to 16
adopt a code of ethics with respect to its employees that requires 17
disclosure of financial interests, defines and precludes conflicts 18
of interest, and establishes reasonable post-employment 19
restrictions for a period of up to 1 year after an employee 20
terminates employment with the authority. 21
(dd) To impose covenants running with the land in order to 22
satisfy requirements of applicable federal law with respect to 23
housing assisted or to be assisted through federal programs such as 24
the low income housing tax credit program or the home investment 25
partnerships program. These covenants shall must be imposed by 26
executing and recording regulatory agreements between the 27
authority, or a municipality or other entity designated by the 28
authority, and the person or entity to be bound. The These 29
13
KAS S05193'25_SB0923_INTR_1 i6gpn5
covenants shall run with the land and be effective with respect to 1
the parties making the covenants and other intended beneficiaries 2
of the covenants, even though there is no privity of estate or 3
privity of contract between the authority and the persons or 4
entities to be bound. 5
(ee) To impose covenants running with the land in order to 6
satisfy requirements of applicable state or federal law with 7
respect to housing financed by the authority. These covenants shall 8
must be imposed by executing and recording regulatory agreements 9
between the authority and the person or entity to be bound. The 10
These covenants shall run with the land and be effective with 11
respect to the parties making the covenants and other intended 12
beneficiaries of the covenants, even though there is no privity of 13
estate or privity of contract between the authority and the persons 14
or entities to be bound. With respect to any applicable 15
environmental laws, this subdivision does not grant to the 16
authority any additional rights, privileges, or immunities not 17
otherwise afforded to a private lender that is not in the chain of 18
title for the land. 19
(ff) To participate in programs designed to assist persons and 20
families whose incomes do not exceed 115% of the greater of 21
statewide median gross income or the area median gross income 22
become homeowners where loans are made by private lenders for 23
purchase by the government national mortgage association, federal 24
national mortgage association, federal home loan mortgage 25
corporation, or other federally chartered organizations. 26
Participation may include providing or funding homeownership 27
counseling and providing some or all of a reserve fund to be used 28
to pay for losses in excess of insurance coverage. 29
14
KAS S05193'25_SB0923_INTR_1 i6gpn5
(gg) To invest, under the conditions prescribed in this 1
subdivision and without the consent of the escrow depositors, up to 2
20% of funds held, by or for the authority, in escrow accounts for 3
the benefit of the authority or mortgagors of authority-financed 4
housing. The investments under this subdivision shall must be made 5
in loans originated or purchased by the authority for construction 6
or rehabilitation of multifamily housing developments for occupancy 7
by persons or families without regard to income. In connection with 8
loans described in this subdivision, the authority may charge and 9
retain fees in amounts similar to those charged with respect to 10
similar loans for which the source of funding does not come from 11
escrow accounts. For purposes of this subdivision, "escrow account" 12
means any account or reserve held by the authority and established 13
in a mortgage or a regulatory agreement to which the authority is a 14
party or which has been assigned to the authority. However, for For 15
purposes of this subdivision, escrow account does not include any 16
account labeled in the associated regulatory agreement as 17
"development cost escrow principal" or "operating assurance 18
reserve". For purposes of this subdivision, "multifamily housing 19
development" means a development in which not less than 50% of the 20
floor space is used primarily for residential purposes. The 21
investment authorized by this subdivision shall must not be made 22
unless both of the following requirements are met: 23
(i) The return on the loan is approximately equivalent to that 24
which could be obtained from investments of substantially similar 25
credit quality and maturity, as determined by the authority. 26
(ii) The authority agrees to pay with its own funds the 27
principal balance of any loan, made with the escrow funds, that 28
becomes delinquent in excess of 30 days. This subdivision does not 29
15
KAS S05193'25_SB0923_INTR_1 i6gpn5
obligate the authority to purchase a delinquent loan so long as 1
with respect to that loan the authority pays to the escrow funds 2
from its own funds the amount of the delinquent payments. The 3
authority's election to pay the delinquent payments to the escrow 4
funds does not in any manner abate or cure the delinquency of the 5
loan and the authority may resort to any remedies that would exist 6
in the absence of that payment. 7
(hh) To acquire, develop, rehabilitate, own, operate, and 8
enter into contracts with respect to the management and operation 9
of real and personal property to use as office facilities by the 10
authority and to enter into leases with respect to facilities not 11
immediately necessary for the activities of the authority. 12
(ii) To make loans to certain qualified buyers and resident 13
organizations and to make grants to resident organizations as 14
provided in the following: 15
(i) The urban homestead act, 1999 PA 127, MCL 125.2701 to 16
125.2709. 17
(ii) The urban homesteading on vacant land act, 1999 PA 129, 18
MCL 125.2741 to 125.2748. 19
(iii) The urban homesteading in single-family public housing 20
act, 1999 PA 128, MCL 125.2761 to 125.2770. 21
(iv) The urban homesteading in multifamily public housing act, 22
1999 PA 84, MCL 125.2721 to 125.2734. 23
(jj) To implement and administer a housing and community 24
development program as described in this act. 25
(kk) To implement, administer, or execute administrative, 26
substantive, or supervisory powers pursuant to under the individual 27
or family development account program act, 2006 PA 513, MCL 206.901 28
to 206.911. 29
16
Final Page
KAS S05193'25_SB0923_INTR_1 i6gpn5
(ll) To coordinate with the Michigan strategic fund in 1
determining eligibility for certain credits under the community 2
development tax credit program established under the income tax act 3
of 1967, 1967 PA 281, MCL 206.1 to 206.847. 4
Sec. 22e. The authority may send letters to the Michigan 5
strategic fund confirming that a project is eligible for an 6
allocation of the low income housing tax credit under section 22b 7
and recommending that the fund approve an additional credit under 8
section 279 or 678 of the income tax act of 1967, 1967 PA 281, MCL 9
206.279 and 206.678, for that same project. 10
Enacting section 1. This amendatory act does not take effect 11
unless all of the following bills of the 103rd Legislature are 12
enacted into law: 13
(a) Senate Bill No. ____ (request no. S05191'25) or House Bill 14
No. ____ (request no. H05191'25). 15
(b) Senate Bill No. 925. 16