The bill amends the Michigan State Housing Development Authority (MSHDA) law by introducing new provisions that enhance the authority's powers and responsibilities in housing development. It adds Section 22e, which allows MSHDA to make working capital loans to contractors, enter into interest rate exchange agreements, and adopt a code of ethics for its employees. The bill emphasizes the authority's role in addressing housing needs, conducting studies, and providing technical assistance to improve housing quality for low and moderate-income individuals. It also grants MSHDA the power to regulate nonprofit housing corporations and appoint directors to ensure compliance with regulations, while establishing guidelines for loan documents that include provisions for loan acceleration in cases of false statements by borrowers.

Additionally, the bill establishes a housing opportunity tax credit program, which MSHDA will administer in collaboration with the Department of Treasury. This program aims to incentivize the development of qualified housing projects through tax credits based on financial feasibility and other criteria. The authority is responsible for reviewing applications, prioritizing projects that utilize locally manufactured components, and ensuring a significant allocation of credits to rural projects. The bill also clarifies definitions related to the tax credit, including eligibility and reporting requirements, and specifies that a "qualified project" must be a low-income building eligible for the federal low-income housing tax credit and placed in service on or after January 1, 2027. The enactment of this bill is contingent upon the passage of two other specified bills from the 103rd Legislature and is designed to take immediate effect upon approval.

Statutes affected:
Substitute (S-1): 125.1422
Substitute (H-1): 125.1422
Senate Introduced Bill: 125.1422
As Passed by the Senate: 125.1422
As Passed by the House: 125.1422
Senate Concurred Bill: 125.1422
Senate Enrolled Bill: 125.1422