The bill amends the State Housing Development Authority Act of 1966 by updating Section 22 and adding a new Section 22e, which enhances the authority's powers to effectively manage housing development and finance. 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 granted the ability to provide mortgage loans to subsequent purchasers of properties acquired after a borrower's default, regardless of their income status. Additionally, the bill outlines the authority's responsibilities in regulating housing projects, approving foundational documents for housing corporations, and enforcing restrictions on properties financed through its loans.

Further changes in the bill expand the authority's operational capabilities, including the collection of interest on real estate loans at a maximum rate of 15% per annum and the requirement to adopt a code of ethics for employees. The authority is tasked with preserving housing for low- and moderate-income families, verifying tax-exempt property statements, and managing debt service through interest rate agreements. It is also mandated to report annually on working capital loans to contractors, including statistics on improvements for disabled individuals. The bill allows for investment of escrow funds in multifamily housing loans under specific conditions and establishes coordination with the Michigan strategic fund for tax credit eligibility, ensuring comprehensive support for low-income housing initiatives.

Statutes affected:
Senate Introduced Bill: 125.1422