MSHDA - NSP 1 Substantial Amendment, Public Comment Period 4/21/2011

NSP 1 Substantial Amendment
Public Comment Period 4/21/2011 - 5/6/2011

The Michigan State Housing Development Authority (MSHDA) submitted the Neighborhood Stabilization Program revised Action Plan (NSP Plan) to the U.S. Department of Housing and Urban Development (HUD) on February 3, 2009.

HUD subsequently approved the plan and entered into a grant agreement with MSHDA on March 19, 2009. The Citizen Participation Plan, Section II of the 2008 Consolidated Plan, as amended by the October 6, 2008 Federal Register, page 58334, requires that the State solicit comments from the public regarding proposed substantial amendments to the NSP Plan during a 15 day public comment period. The State of Michigan is proposing the following substantial amendment to the NSP Plan, effective upon HUD's approval:

MSHDA is proposing a substantial amendment to the NSP Plan on page 12, Definitions, Affordable Rents. The current definition states:

MSHDA will adopt the HOME definition of "affordable rents" at 24 CFR 92.252 (a), (c), and (f).

MSHDA is proposing the following expanded and revised definition:

Definition: MSHDA will adopt the following definitions of "affordable rents" based on the mix of funding sources within specific transactions:

For NSP assisted housing units that are also subject to the income and rent restrictions of Sections 42 or 142 of the Internal Revenue Code, respectively relating to Low Income Housing Tax Credits and Tax-Exempt Bond financing, MSHDA will adopt as "affordable rents" the rents required by Section 42 and/or Section 142.

For NSP assisted units meeting the Low Income Set Aside that are also subject to the income and rent restrictions of Sections 42 or 142 of the Internal Revenue Code, respectively relating to Low Income Housing Tax Credits and Tax-Exempt Bond financing, MSHDA will adopt as "affordable rents" the rents required by Section 42 and/or Section 142 for 50% AMI units.

(Generically, combined these provisions will result in a gross rent limit equal to either the 60% AMI tax credit rent, or, for units designated within the NSP Low Income Set Aside, the 50% AMI tax credit rent.)

For NSP assisted housing units income restricted at or below 80% of the area median income and not otherwise assisted with Low Income Housing Tax Credits or Tax-Exempt Bond Financing, MSHDA will adopt the HOME definition of "affordable rents" at 24 CFR 92.252 (a)(2), (c), and (f).

For NSP assisted housing unit income restricted at or below 120% of the area median income and not otherwise assisted with Low Income Housing Tax Credits or Tax-Exempt Bond Financing, MSHDA will adopt as "affordable rents" a rent limit, without consideration of tenant paid utilities, calculated to be one-twelfth (1/12th) of 30% of the 100% area median income limit, as determined HUD, with adjustments for the number of bedrooms in unit.

Comments

Comments relative to this substantial amendment should be provided in writing and addressed to:

Martha Baumgart
Consolidated Plan Coordinator
MSHDA
735 E. Michigan Avenue
Lansing, Michigan 48912 or emailed to:
baumgartm@michigan.gov.

The 15 day comment period begins April 21, 2011 and will close May 6, 2011.

Special Assistance: Persons with disabilities needing accommodations for effective participation in the public comment period on the NSP Plan should contact Christopher L. LaGrand, Director of Legal Affairs, MSHDA, 735 East Michigan, P.O. Box 30044, Lansing, Michigan 48909 (517) 373-8295 or TTY (800) 382-4568.

NSP 1 Substantial AmendmentPublic Comment Period 4/21/2011 - 5/6/2011

NSP 1 Substantial Amendment
Public Comment Period 4/21/2011 - 5/6/2011