A bill to amend 1966 PA 346, entitled “State housing development authority act of 1966,” by amending section 44 (MCL 125.1444), as amended by 2017 PA 127.
According to the House Fiscal Agency, House Bill 5032 would change the maximum purchase price or appraised value for certain loans under the act from a fixed dollar amount to a percentage of the applicable average area purchase price.
The act allows MSHDA to make, purchase, or participate in loans made to individual purchasers for acquisition and long-term financing or refinancing of newly rehabilitated, newly constructed, or existing one- to four-family housing units, including a residential condominium unit. Among the requirements that apply to such a loan, the purchase price or appraised value (for a refinancing) cannot exceed $224,500 for a one- or two-family unit, $261,625 for a three-family unit, or $299,000 for a four-family unit.
The bill would delete the limits described above and would instead provide that the purchase price or appraised value, as applicable, cannot exceed 90% of the average area purchase price applicable for the housing unit. The average area purchase price would have to be determined in accordance with section 143(e) of the federal Internal Revenue Code or any other regulations promulgated under that provision.
In addition, the act allows MSHDA to increase the purchase price limit by an amount that will cover unexpected cost increases during construction or improvements to adapt property for use by disabled individuals, up to a limit of $3,500. The bill would increase this limit to $10,000.
Co-sponsored by Reps.
Referred to the Committee on Economic Development and Small Business
Reported without amendment
Passed in the House 60 to 48 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Referred to the Committee on Housing and Human Services
Reported without amendment
Referred to the Committee of the Whole
