Housing (Housing Finance)

HB 4540 amends Michigan's Housing and Community Development Fund to expand eligible uses of the funds. It allows the state housing authority to provide grants, loans, or assistance for housing projects targeting low-, very low-, and middle-income households, including new construction, rehabilitation, foreclosure prevention, and predatory lending relief. The bill specifically adds support for "individual development accounts" (for savings programs) and community development projects like blight elimination. It affects housing providers, nonprofits, and residents in targeted income groups by clarifying how existing state funds can be allocated to address housing needs.

HB 4539 amends Michigan's housing law to clarify definitions and strengthen funding rules for affordable housing projects. It defines key terms like "extremely low-income" (≤30% of area median income) and "downtown area" (50+ years of commercial use with mixed buildings), directly affecting low- and middle-income households in these zones. The bill requires 30% of funds to support projects for extremely low-income households (including homeless and supportive housing) and mandates that 20% of units in all funded projects serve households earning ≤60% of area median income. It also requires the housing authority to create a public input process for its biennial funding plan, prioritizing areas with high poverty, disability needs, and housing distress.

SB 442 creates a new state-level process for charitable nonprofit housing organizations to obtain property tax exemptions on specific residential properties (like single-family homes, duplexes, or small multi-unit buildings). Organizations must apply to the state tax commission, which has 60 days to approve or deny the exemption. If approved, the exemption lasts 3-5 years (depending on property type) or ends sooner if the property is occupied by an income-eligible person (family income ≤120% of statewide median) or transferred. The bill modifies existing rules to shift from local resolution-based exemptions to a centralized state application system.