Bill signed to help fill funding gap for affordable housing projects
September 24, 2013
Legislation is one of six bills earning governor’s support
Tuesday, Sept. 24, 2013
LANSING, Mich. – Gov. Rick Snyder today signed a bill that will help fill a gap between what a developer can pay and what banks are willing to lend for commercial mixed-use and multifamily residential developments.
Senate Bill 347, sponsored by state Sen. Mark Jansen, clears the way for the Michigan State Housing Development Authority (MSHDA) to create the Michigan Mezzanine Fund, which will leverage existing funds to invest in those housing developments. It allows MSHDA to attract outside capital to help fill the funding gap and diversifies MSHDA’s revenue streams, allowing the authority to free up more funds for investment in affordable housing for the state’s low-to-moderate income residents.
“The Michigan Mezzanine Fund will not only help fill a funding gap, but it will also boost the housing, real estate and construction industries in our state,” Snyder said. “This is an important part of our plan to revitalize Michigan’s urban cores.”
MSHDA, which provides financial and technical assistance through public and private partnerships, will serve as general partner of the fund. The investment fund will be seeded with $25 million in non-taxpayer dollars, and leverage that with an additional $75 million-$100 million in private investments. The fund will then fill the gap between the equity a developer can bring to a project and the 60-70 percent that banks are willing to lend on a development.
SB 347 is now Public Act 116 of 2013.
Other bills signed by the governor are:
• House Bill 4094, sponsored by state Rep. Joel Johnson, protects Michigan hunters from prosecution or penalty for possessing an animal lawfully harvested in another state, territory or country, and lawfully imported into Michigan. It is now PA 111 of 2013.
• HB 4664, sponsored by state Rep. Greg MacMaster. It provides a two-year extension to the current statutory sunset date of Sept. 30, 2013, which allows retired corrections officers rehired by the Michigan Department of Corrections to continue receiving a retirement allowance during 80 percent of the maximum wages granted to a classified civil service employee who performs the same duties for the Department of Corrections as the rehired retiree for the fiscal year in which the rehired retiree is employed. The new law allows the department to help fill vacancies through the use of retired corrections officers who are well trained and seasoned. The bill now is PA 112 of 2013.
• HB 4671, sponsored by state Rep. Earl Poleski. It amends the Emergency 911 Service Enabling Act by allowing the Department of Treasury to use up to $150,000 from the Emergency 911 Fund for administration of the program each year until Sept. 30, 2015. The money will be available to Treasury only if there is a balance in the portion of the fund that was not paid to reimburse local exchange providers. Under current law, the $150,000 appropriation was for fiscal year 2011-12 only. The bill now is PA 113 of 2013.
• HB 4132, sponsored by state Rep. Peter Pettalia. It requires the Michigan Department of Agriculture and Rural Development to appoint conservation district directors to fill vacancies when the conservation district board does not have a sufficient number of currently elected directors to constitute a quorum. The bill now is PA 114 of 2013.
• HB 4541, sponsored by state Rep. Tim Kelly. It amends the Obsolete Property Rehabilitation Act to address the effective date of an exemption certificate in an instance where certain procedural requirements were not met. The bill now is PA 115 of 2013.
Visit www.legislature.mi.gov for more information on the bills.