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SB 923

Housing: housing development authority; eligibility for credits under the community development tax credit program; coordinate with Michigan strategic fund. Amends sec. 22 of 1966 PA 346 (MCL 125.1422) & adds sec. 22e. TIE BAR WITH: SB 0925'26

2025-2026 Regular Session Introduced by Stephanie Chang and 2 co-sponsors

MSHDA gains expanded authority to develop, finance, manage, and coordinate affordable housing, including LIHTC eligibility with the Michigan Strategic Fund.

REFERRED TO COMMITTEE ON ECONOMIC AND COMMUNITY DEVELOPMENT
#corporateincometax:credits #housing:housingdevelopmentauthority #individualincometax:credit
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Bill Summary · SB 923

Summary of SB 923 (2025-2026) – Michigan Housing Development Authority

Purpose and intent

SB 923 proposes amendments to the Michigan State Housing Development Authority Act of 1966 (1966 PA 346) to clarify and expand the authority’s powers related to housing development, tax credit coordination, and program administration. The bill adds a new section (Sec. 22e) and revises Sec. 22 (MCL 125.1422). A tie-bar links SB 923 to SB 925. The overarching aim is to strengthen the authority’s ability to develop housing, manage funds, and coordinate with state economic development programs, including tax credit eligibility and federal/state housing initiatives.

Key provisions and changes

  • Broad authority powers retained and clarified (Sec. 22):

    • The authority can sue, contract, set bylaws, and perform standard governance actions.
    • It may conduct housing need studies, survey conditions, and disseminate findings to the public.
    • It can comply with conditions attached to federal funds and levy fees for publications, loans, servicing, and related activities.
    • It may support community organizations and salvage usable housing from demolitions by reallocating demolition funds to rehabilitation costs.
    • It is empowered to undertake research, demonstrate new housing techniques, and provide technical assistance.
    • It can make, purchase, and service loans; buy securities; foreclose; bid for foreclosed properties; and manage acquired property to protect its interests.
    • It may set construction/rehabilitation standards (jointly with the Mobile Home Commission for mobile homes) and enforce inspections.
    • It can accept gifts, grants, and aid; manage and dispose of property; procure insurance; invest surplus funds; and promulgate rules under the Administrative Procedures Act.
    • It may partner with nonprofit housing entities, appoint directors, and impose governance/oversight conditions when financial risk or project jeopardy is identified.
    • It can approve certain corporate structures and documents for nonprofit housing entities and housing cooperatives, and enforce covenants running with the land to satisfy federal/state law requirements for housing programs (including LIHTC and HOME-like programs).
    • It may encourage preservation and rehabilitation of housing for low- and moderate-income households.
    • It can coordinate with the Michigan Strategic Fund to determine eligibility for the Community Development Tax Credit program (MCL 206.1 et seq.).

  • Sec. 22e – Coordination with Michigan Strategic Fund (MSF):

    • The authority may send letters to the MSF confirming project eligibility for the low-income housing tax credit (LIHTC) under Sec. 22b and recommending that the MSF approve additional credits under Sect. 279 or 678 of the Michigan income tax act (PA 281).

  • Tying and sequencing (Tie Bar):

    • SB 923 is tied to SB 925, meaning the enacted version of SB 923 may depend on passage of SB 925.

  • Effective date conditions:

    • The bill’s enactment depends on concurrence with certain other bills from the 103rd Legislature (including SB 925 and related requests).

Who/what is affected

  • Michigan State Housing Development Authority (MSHDA): Receives enhanced authority and flexibility to financing, manage, and oversee housing projects, including LIHTC coordination with MSF.
  • Nonprofit housing corporations, consumer housing cooperatives, limited dividend housing corporations, mobile home park entities: May see expanded appointment powers, regulatory oversight, and covenant requirements tied to federal/state housing programs.
  • Michigan Strategic Fund (MSF): Sits as a partner in determining LIHTC eligibility and possible additional tax credits for the same projects.
  • Low- and moderate-income households: Potentially benefit from accelerated development, preservation, and management of affordable housing.

Procedural and timeline aspects

  • Introduced: April 23, 2026.
  • Referral: Committee on Economic and Community Development.
  • Enactment condition: Varies with the passage of related bills (tie-bar with SB 925) and a joint set of legislative enactments in the 103rd Legislature.
  • Administrative process: Maintains standard rulemaking and oversight provisions under the Administrative Procedures Act; includes reporting requirements for capital loans to contractors/subcontractors.

This summary captures the substantive provisions and potential implications of SB 923, focusing on the expanded role of MSHDA, LIHTC coordination, and governance around housing development in Michigan.

Compiled from official sources — confirm details with the bill’s official record.

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