HB-5447, As Passed House, December 4, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5447

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1966 PA 346, entitled

 

"State housing development authority act of 1966,"

 

by amending section 1 (MCL 125.1401), as amended by 1998 PA 33.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) The legislature hereby determines that there

 

exists in the state a seriously inadequate supply of, and a

 

pressing need for, safe and sanitary dwelling accommodations within

 

the financial means of low income or moderate income families or

 

persons, including those families and persons displaced by the

 

clearing of slums and blighted areas or by other public programs;

 

that there exists in this state a high incidence of residential

 

real property occupied by persons of low and moderate income which

 

is not safe, sanitary, or adequate and that there is a pressing


 

need for rehabilitation of that property; that large areas in

 

municipalities have become blighted or, through programs to remove

 

blight, have become vacant, resulting in the impairment or loss of

 

taxable values upon which municipal revenue largely depends; that

 

large numbers of middle and upper income persons and families have

 

left municipalities which have high concentrations of low income

 

persons and families resulting in a high demand for municipal

 

services notwithstanding a low potential for generating revenues

 

necessary to pay for those services; that the existence of blight,

 

the inability to redevelop cleared areas, and the lack of economic

 

integration is detrimental to the general welfare of the citizens

 

of this state and the economic welfare of municipalities in this

 

state; that the financing of housing for persons and families

 

without regard to income will assist in preserving existing values

 

of property within or adjacent to blighted or cleared areas; that

 

economic integration will promote the financial and social

 

stability of housing for families and persons of low and moderate

 

income; that in order to improve and maintain the general character

 

of municipalities having the aforesaid characteristics, it is

 

necessary to promote the development of housing for persons and

 

families without regard to income; that to increase the

 

availability of safe and sanitary housing generally it is necessary

 

to facilitate the purchase of existing housing by making financing

 

for the purchase of existing housing available at affordable

 

interest rates; that there are inadequate social, recreational,

 

commercial, and communal facilities in residential areas inhabited

 

by low income or moderate income families or persons and in areas


 

blighted or vacant because of slum clearance, and that housing

 

financed pursuant to this act will not be viable without adequate

 

social, recreational, commercial, and communal facilities in the

 

surrounding area; and that it is a valid public purpose to finance

 

the acquisition and rehabilitation of existing housing or the

 

construction of additional housing for those low or moderate income

 

families and persons who would otherwise be unable to obtain

 

adequate and affordable dwellings, to finance the rehabilitation of

 

residential real property occupied or to be occupied by persons and

 

families of low and moderate income who would otherwise be unable

 

to afford the purchase or rehabilitation of residential real

 

property which is safe, sanitary, or adequate, to finance housing

 

for persons and families without regard to income in areas in

 

municipalities which are experiencing blight or inability to

 

redevelop land cleared of blight which are predominately populated

 

by low and moderate income persons and families, to finance social,

 

recreational, commercial, and communal facilities to serve those

 

families or persons, to enhance authority-financed housing, to

 

establish and provide acceleration and foreclosure procedures for

 

authority-financed housing, and to acquire land for present or

 

future development including that housing and social, recreational,

 

commercial, and communal facilities; that it is a valid public

 

purpose to finance safe, sanitary, and adequate mobile homes,

 

mobile home parks, and mobile home condominium projects for persons

 

and families of low and moderate income in order to facilitate the

 

provision of affordable housing for such persons, to finance mobile

 

homes, mobile home parks, and mobile home condominium projects


 

without regard to income in areas in municipalities which are

 

experiencing blight or inability to redevelop land cleared of

 

blight which are predominately populated by low and moderate income

 

persons and families, and to finance social, recreational,

 

commercial, and communal facilities in mobile home parks and mobile

 

home condominium projects, the financing of mobile homes, mobile

 

home parks, and mobile home condominium projects being necessary to

 

fill a gap in the housing market.

 

     (2) It is further determined that the supply of low and

 

moderate cost housing available for occupancy by certain persons

 

with disabilities and certain elderly persons is being eroded

 

through greatly increasing rental rates, and the conversion of low

 

and moderate cost rental units into condominium units which are

 

then sold at prices and under financing terms which are not

 

affordable to those persons with disabilities and elderly persons.

 

It is further determined that it is a proper public purpose to

 

prevent the erosion of the supply of existing low and moderate cost

 

housing available for occupancy by certain persons with

 

disabilities and elderly persons by taking appropriate action to

 

prevent the displacement of those persons with disabilities and

 

elderly persons from existing low and moderate cost housing,

 

including the making of loans enabling those persons with

 

disabilities and elderly persons to continue to rent the units in

 

which they reside.

 

     (3) It is further determined that to assure an adequate supply

 

of safe and sanitary housing for families of low and moderate

 

income within the financial means of those families, it is


 

necessary to facilitate the purchase of safe and sanitary existing

 

housing by those families; that, in addition, new single-family

 

housing construction is inhibited by the inability of prospective

 

purchasers to sell existing single-family residences, and that

 

those conditions result in the reduction of the number of safe and

 

sanitary dwellings which would otherwise be made available to

 

persons of low and moderate income; and that the depressed economy

 

and decreased employment in this state are detrimental to the

 

general welfare of the citizens of this state. It is further

 

determined that it is necessary in order to alleviate those

 

conditions and is a valid public purpose to provide for the

 

financing or refinancing, with the assistance of the authority, of

 

the purchase of existing single-family residences for occupancy by

 

low and moderate income families and families without regard to

 

income in areas in municipalities which are experiencing blight or

 

inability to redevelop land cleared of blight and which are

 

predominately populated by low and moderate income persons and

 

families.

 

     (4) It is further determined that there exists in this state a

 

high incidence of residential rental property which is not safe,

 

sanitary, adequate, or energy efficient, and that there is a

 

pressing need for the rehabilitation of residential rental property

 

in order to preserve and improve the state's existing housing

 

stock. It is further determined that it is necessary in order to

 

alleviate those conditions and is a valid public purpose to provide

 

for the financing, with the assistance of the authority, of the

 

rehabilitation of existing residential rental property without


 

regard to the income of the persons or entities owning the property

 

or of the tenants of the property.

 

     (5) It is further determined that there is a statewide

 

pressing need for programs to alleviate and prevent conditions of

 

unemployment in the housing industry, to preserve existing jobs and

 

create new jobs to meet the employment demands of population

 

growth, to promote the development of construction related business

 

enterprises, to revitalize and diversify the Michigan economy in

 

general, and to achieve the goals of economic growth and full

 

employment.

 

     (6) It is further determined that the construction and

 

rehabilitation of safe and sanitary dwellings are necessary to the

 

creation and retention of jobs in the state.

 

     (7) It is further determined that the retention, promotion,

 

and development of the housing industry require additional means of

 

financing to help existing business enterprises expand more

 

rapidly, to promote the location of additional business enterprises

 

in this state, and to alleviate and prevent conditions of

 

unemployment.

 

     (8) It is further determined that economic conditions and

 

single-family home mortgage market standards, activities, and

 

practices, including forms of predatory and abusive mortgage loan

 

financing, have resulted in an increase in the incidence of

 

mortgage loan default and mortgage foreclosure in the state, and

 

that there is a pressing need for the creation of programs to

 

assist low and moderate income individuals and families with the

 

refinancing of single-family mortgages in this state, which


 

programs will prevent families from losing their homes and help to

 

stabilize the housing market in this state.

 

     (9) (8) The legislature finds that the conditions described in

 

subsections (1) to (7) (8) cannot be remedied by the ordinary

 

operation of private enterprise without supplementary public

 

participation and that the authority and powers conferred by this

 

act constitute a necessary program and serve a valid public

 

purpose.