Bill Text: MI SB1127 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Housing: housing development authority; first-time home buyers fund; create. Amends 1966 PA 346 (MCL 125.1401 - 125.1499c) by adding sec. 49w. TIE BAR WITH: SB 1125'26, SB 1126'26
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-07-29 - Referred To Committee On Housing And Human Services [SB1127 Detail]
Download: Michigan-2025-SB1127-Introduced.html
SENATE BILL NO. 1127
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
(MCL 125.1401 to 125.1499c) by adding section 49w.
the people of the state of michigan enact:
Sec. 49w. (1) The community housing stability fund is created in the authority.
(2) The authority shall receive fines collected under section 262 of the business corporation act, 1972 PA 284, MCL 450.1262, and section 217 of the Michigan limited liability company act, 1993 PA 23, MCL 450.4217, for deposit into the fund. The authority may also receive money or other assets from any other source for deposit in the fund. The authority shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.
(3) The authority shall invest the money and credit the earnings from the investments to the fund in accordance with section 22.
(4) The authority shall expend money from the fund for the purpose of developing and coordinating public and private resources to meet the housing needs of low-income, very low-income, and extremely low-income households.
(5) The authority shall identify, select, and make financing available to eligible applicants from money in the fund or from money secured by the fund for housing for low-income, very low-income, and extremely low-income households. This subsection does not preclude the authority from using other resources in conjunction with the fund for a purpose authorized under this section.
(6) The authority shall develop a biennial allocation plan providing for the allocation of money from the fund, according to all of the following:
(a) The allocation plan must contain a formula for distributing money throughout the state based on the number of persons experiencing poverty, economic, and housing distress in various regions of the state.
(b) The allocation plan must include a preference for special population groups described in section 58c(2).
(c) Not less than 25% of the fund must be earmarked for rental housing projects that do not qualify under preferences for special population groups or other preferences contained in the allocation plan.
(d) Not less than 30% of the fund must be earmarked for projects that target extremely low income households and include at a minimum developing housing for the homeless, supportive housing, transitional housing, and permanent housing.
(e) A rental housing project assisted by the fund must set aside at least 20% of the rental units included in the project for households earning no more than 60% of the area median income.
(f) A home ownership project assisted by the fund must set aside at least 20% of the housing units in the project for households earning no more than 60% of the area median income.
(g) Money that has not been committed at the end of a fiscal year must not be carried over in the category to which the money had been allocated during that fiscal year but must be reallocated for the next fiscal year according to the next fiscal year's allocation plan.
(7) Before developing the biennial allocation plan, the authority shall hold public hearings in at least 3 separate locations in this state regarding the content of the biennial allocation plan. The authority may make modifications to the allocation plan necessary to facilitate the administration of the fund or to address unforeseen circumstances.
(8) The authority shall issue an annual report to the governor and the legislature summarizing the expenditures of the fund for the prior fiscal year including at a minimum a description of the eligible applicants that received funding, the number of housing units that were produced, the income levels of the households that were served, the number of homeless persons served, and the number of downtown areas and adjacent neighborhoods that receive financing.
(9) The authority may promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section.
(10) As used in this section, "fund" means the community housing stability fund created in subsection (1).
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law:
(a) Senate Bill No. 1125.
(b) Senate Bill No. 1127.
