The bill amends the State Housing Development Authority Act of 1966 by updating Section 22 and adding Section 22e, enhancing the authority's powers to effectively manage housing finance and operations. Key modifications include a shift in the language regarding fee determination from "shall" to "must," clarifying that these fees are not classified as interest. The authority is also empowered to provide mortgage loans to subsequent purchasers of properties acquired due to borrower default, regardless of their income status. Additionally, the bill expands the authority's oversight capabilities over nonprofit housing corporations and cooperatives, allowing it to appoint directors and approve foundational documents to ensure compliance and protect its interests.

Further changes include the authority's ability to collect interest on certain real estate loans at a rate of 15% or less, enter into interest rate agreements, and make working capital loans to contractors. The bill also establishes new requirements for covenants related to housing assistance programs, mandates compliance with federal and state laws, and allows the authority to invest escrow funds in multifamily housing loans. Moreover, it outlines the authority's role in coordinating with the Michigan strategic fund for community development tax credits. The enactment of this bill is contingent upon the passage of two additional specified bills in the legislature.

Statutes affected:
House Introduced Bill: 125.1422