Bill Text: MI HB6552 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Appropriations: supplemental; funding for the housing and community development fund and certain other housing programs; provide for. Creates appropriation act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-12-07 - Bill Electronically Reproduced 12/07/2022 [HB6552 Detail]
Download: Michigan-2021-HB6552-Introduced.html
HOUSE BILL NO. 6552
A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2023; to provide for certain conditions on appropriations; and to provide for the expenditure of the appropriations.
the people of the state of michigan enact:
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part 1
line-item appropriations
Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year
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ending September 30, 2023, from the following funds:
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APPROPRIATION SUMMARY |
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GROSS APPROPRIATION |
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$ |
550,000,000 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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0 |
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ADJUSTED GROSS APPROPRIATION |
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$ |
550,000,000 |
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Federal revenues: |
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Total federal revenues |
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500,000,000 |
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Special revenue funds: |
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Total local revenues |
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0 |
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Total private revenues |
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0 |
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Total other state restricted revenues |
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0 |
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State general fund/general purpose |
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$ |
50,000,000 |
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Sec. 102. DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY |
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(1) APPROPRIATION SUMMARY |
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GROSS APPROPRIATION |
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$ |
550,000,000 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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0 |
|
ADJUSTED GROSS APPROPRIATION |
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$ |
550,000,000 |
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Federal revenues: |
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Total federal revenues |
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500,000,000 |
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Special revenue funds: |
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Total local revenues |
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0 |
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Total private revenues |
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0 |
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Total other state restricted revenues |
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0 |
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State general fund/general purpose |
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$ |
50,000,000 |
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(2) ONE-TIME APPROPRIATIONS |
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ARP - housing and community development fund |
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$ |
300,000,000 |
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ARP - preservation of affordable housing |
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200,000,000 |
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Missing middle gap program |
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50,000,000 |
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GROSS APPROPRIATION |
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$ |
550,000,000 |
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Appropriated from: |
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Federal revenues: |
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Coronavirus state fiscal recovery fund |
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500,000,000 |
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State general fund/general purpose |
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$ |
50,000,000 |
part 2
provisions concerning appropriations
general sections
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2023 is $50,000,000.00 and total state spending from state sources to be paid to local units of government is $0.00.
Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. Federal funds appropriated in part 1 must be allocated and expended in a manner consistent with federal rules and regulations.
Sec. 204. Funds appropriated in part 1 are subject to applicable federal audit and reporting requirements. Prompt action
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must be taken if instances of noncompliance are identified, including noncompliance identified in an audit finding. If any instance of noncompliance is identified, including noncompliance identified in an audit finding, the state budget director shall take necessary and immediate action to rectify it. The state budget director shall notify the senate and house appropriations committees and the senate and house fiscal agencies when an instance of noncompliance is identified.
Sec. 205. The state budget director must report on the status of funds appropriated in part 1, and all funds appropriated related to the coronavirus relief effort, to the senate and house appropriations committees and the senate and house fiscal agencies on a monthly basis until all funds are exhausted.
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Sec. 301. (1) Funds appropriated in part 1 for ARP – housing and community development fund must be used to complement existing federal programs to increase the share of affordable housing in this state. It is the intent of the legislature that the funding support building new single-family and multifamily homes for low-income residents. In allocating funding, the department shall do all of the following:
(a) Give priority to housing development that is infill and in medium- and high-density areas.
(b) Give priority to areas where local governments have reformed zoning to encourage denser, multiuse neighborhoods.
(c) Provide additional funding or incentives to projects that are 1 or more of the following:
(i) Highly energy efficient.
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(ii) Net-zero.
(iii) All electric.
(2) Unexpended funds appropriated in part 1 for ARP – housing and community development fund are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to increase the share of affordable housing in this state.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $300,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 302. (1) Funds appropriated in part 1 for ARP – preservation of affordable housing must be allocated as follows:
(a) $150,000,000.00 to ensure affordable housing that is reaching the end of its low-income home tax credit affordability requirements timeline remains affordable.
(b) $50,000,000.00 to incentivize low-income home tax credit developers to pursue green building certifications.
(2) Unexpended funds appropriated in part 1 for ARP – preservation of affordable housing are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section
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451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to ensure affordable housing that is reaching the end of its low-income home tax credit affordability requirements timeline remains affordable and to incentivize low-income home tax credit developers to pursue green building certifications.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $200,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 303. (1) Funds appropriated in part 1 for missing middle gap program must be used to continue the implementation of the missing middle housing gap program as specified in section 353 of 2022 PA 53. In addition to the specifications in section 353 of 2022 PA 53, in allocating funding, the department shall do all of the following:
(a) Give priority to housing development that is infill and in medium- and high-density areas.
(b) Give priority to areas where local governments have reformed zoning to encourage denser, multiuse neighborhoods.
(c) Provide additional funding or incentives to projects that are 1 or more of the following:
(i) Highly energy efficient.
(ii) Net-zero.
(iii) All electric.
(2) Unexpended funds appropriated in part 1 for missing middle gap program are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the
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fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to continue the implementation of the missing middle housing gap program as specified in section 353 of 2022 PA 53.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $50,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 304. (1) From the funds appropriated in part 1, the department shall create and operate a responsible contractor program to ensure that contractors that work on a project funded under sections 301 to 303 meet responsible standards. As part of the responsible contractor program, the department shall establish a detailed application, approval, and compliance process that is also published and available on the department's website. The application must include, but is not limited to, all of the following:
(a) Disclosure of any violations of federal, state, or local law by the applicant and, if different than the applicant, the proposed principal contractor for the project, during the 5-year period immediately preceding the date of application, including, but not limited to, violations of any of the following:
(i) The Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094.
(ii) The occupational safety and health act of 1970, Public Law 91-596.
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(iii) 40 USC chapter 31, subchapter IV.
(iv) The worker's disability compensation act of 1969, 1969 PA 317, MCL 418.101 to 418.941.
(v) The Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.1 to 421.75.
(vi) The federal unemployment tax act, 26 USC chapter 23.
(vii) The improved workforce opportunity wage act, 2018 PA 337, MCL 408.931 to 408.945.
(viii) The fair labor standards act of 1938, 29 USC chapter 8.
(ix) Any other occupational safety, prevailing wage, wage and hour, worker's compensation, or unemployment compensation laws.
(b) A statement affirming that all contractors, subcontractors, employees, and other individuals working on the construction project will maintain all applicable occupational and professional licenses and registrations required by law.
(c) Verification that the applicant and, if different than the applicant, the proposed principal contractor for the project are in compliance with all applicable state and federal laws and visa requirements regarding the hiring of individuals who are not citizens of the United States, and disclosure of any work visas sought or obtained by the applicant, the principal contractor if different from the applicant, any subcontractor, or an employee or independent contractor of the applicant, the principal contractor, or any subcontractor, in order to perform any portion of the project.
(d) Disclosure of all litigation and arbitrations currently pending or conducted within the past 5 years involving the applicant and, if different than the applicant, the proposed principal contractor for the project, including for each proceeding
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a description of the parties, court or other forum, legal claims raised, damages sought, and resolution.
(e) Proof of insurance, including certificates of insurance, confirming existence and amount of coverage for liability, property damage, worker's compensation, and any other insurances required for the project.
(f) A statement affirming that the applicant and, if different than the applicant, the proposed principal contractor for the project will pay all craft employees working on the project the current wage rates and fringe benefits required under applicable federal, state, and local wage laws.
(g) A statement regarding the staffing capabilities and labor sources, including subcontractors, of the applicant and, if different than the applicant, the proposed principal contractor for the project.
(h) Verification that construction workers will not be misclassified as independent contractors in violation of state or federal law.
(i) A description of the project for which the funds will be expended, including tentative timelines and the estimated budget, and a statement identifying possible change orders that may be necessary and their approximate total costs.
(j) Evidence of equal employment opportunity programs for minorities, women, veterans, returning citizens, and small businesses maintained by the applicant and, if different than the applicant, the proposed principal contractor for the project.
(2) The department shall execute a responsible contractor agreement with each recipient of funding. The responsible contractor agreement must include, but is not limited to, all of
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the following:
(a) All necessary identifying information for the recipient, including any necessary tax identification information.
(b) A description of the project for which the funds will be expended, including tentative timelines and the estimated budget, and a statement identifying possible change orders that may be necessary and their approximate total costs.
(c) A requirement that the recipient update the information provided under subsection (1) if new information becomes available.
(d) A requirement that the recipient comply with all affirmations, verifications, and other representations made under subsection (1).
(e) If the proposed principal contractor for the project is different than the recipient, a requirement that the recipient ensure that the principal contractor will do all of the following:
(i) Update the information provided under subsection (1) if new information becomes available.
(ii) Comply with all affirmations, verifications, and other representations made under subsection (1).
(iii) Provide the recipient with all information necessary for the recipient to comply with the recipient's duties under the responsible contractor agreement and this act.
(iv) Allow audit and site visits of the project by the department under subsection (3).
(f) A requirement for quarterly reports from the recipient to the department that provide the status of the project and an accounting of all funds expended by the recipient.
(g) A requirement that the recipient comply with subsection (3).
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(h) A clawback provision if the recipient fails to comply with the agreement or otherwise misuses the funds.
(3) The recipient of funding shall respond to all reasonable information requests from the department related to expenditures of the funding and the status of the project and retain records regarding these items for a period of not less than 3 years. The project may be subject to audit and site visits as determined by the department.
