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HB 4539

Housing: other; housing and community development fund; modify. Amends secs. 58 & 58b of 1966 PA 346 (MCL 125.1458 & 125.1458b). TIE BAR WITH: HB 4540'25

2025-2026 Regular Session Introduced by Luke Meerman and 1 co-sponsor

The bill creates a Michigan housing program prioritizing extremely low- and special-population households, with durable rental/ownership set-asides and public-engagement rules.

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Bill Summary · HB 4539

Summary — HB 4539 (2025)

Purpose: Amend the State Housing Development Authority Act of 1966 (1966 PA 346) to revise definitions and to modify the structure, priorities, and public-engagement requirements for the Michigan Housing and Community Development Program and the Michigan Housing and Community Development Fund.

Bill reference: amends sections 58 and 58b (MCL 125.1458 & 125.1458b). Tie bar with HB 4540 (2025). Companion: SB 2013.

Key provisions and changes

  • Definitions

    • Clarifies/expands several program definitions: “adjacent neighborhood,” “downtown area” (requires ≥20 contiguous commercial properties in place ≥50 years, predominance of adjacent buildings, significant multilevel mixed-use buildings, and ownership by >3 private owners), “mixed use buildings,” “multifamily housing,” “supportive housing,” and “project.”
    • Establishes a new definition of “middle-income household” (adjusted household income ≤ 120% of area median income (AMI)).
    • Standardizes and updates wording for “extremely low income,” “very low income,” and “low income” households to align with authority rules for adjusted household income.

  • Program scope and allocation

    • Directs the Authority to create/implement the Michigan housing and community development program to coordinate public/private resources for housing needs of low- to middle-income households and projects in downtown/adjacent neighborhoods.
    • Requires a biennial allocation plan with a distribution formula based on regional poverty, housing/economic distress, number of persons with disabilities, and number of accessible units.
    • Allocation plan must:
    • Include a preference for “special population groups” (per section 58c(2)).
    • Earmark at least 25% of fund for rental projects that do not qualify under other preferences.
    • Earmark at least 30% of fund for projects targeting extremely low-income households (including homeless, supportive, transitional, permanent housing).
    • Require rental projects financed by the fund to set aside at least 20% of units for households earning ≤60% AMI.
    • Require homeownership projects financed by the fund to set aside at least 20% of units for households earning ≤60% AMI.
    • Uncommitted funds at fiscal year end must be reallocated according to the next year’s plan.

  • Public participation and reporting

    • Requires public hearings in at least three separate locations before developing the biennial allocation plan, with mandatory virtual participation options and targeted outreach to persons with disabilities, people with limited English proficiency, and low-/very-low-/extremely-low-/middle-income households.
    • Authority must issue an annual report to the Governor and Legislature summarizing fund expenditures, recipients, units produced, and income levels served (reporting requirement text is partially truncated in the provided document).

Who is affected

  • Primary beneficiaries: extremely low-, very low-, low-, and middle-income households across Michigan, with explicit focus on extremely low-income households and special population groups.
  • Eligible applicants/providers: nonprofit and for-profit corporations, municipalities, land bank fast track authorities, and approved partnerships organized to develop/support affordable housing.
  • Local downtown areas and adjacent neighborhoods targeted for revitalization and housing investment.
  • Michigan State Housing Development Authority (administration of program) and state/federal partners providing complementary funding.

Procedural status & timeline (as provided)

  • Filed: March 12, 2025.
  • Committee hearings and substitute considered (April–May 2025); reported favorably as substituted May 1, 2025.
  • Floor actions show passage/engrossment activity mid-May 2025 (record votes and statements recorded).
  • Bill electronically reproduced June 3, 2025; introduced/referred to Committee on Economic Competitiveness (June 3, 2025).
  • Companion: SB 2013.

Potential impacts and considerations

  • Shifts fund priorities to emphasize extremely low-income households and supportive housing (≥30% earmark), while preserving set-asides for affordability in both rental and ownership projects (20% at ≤60% AMI).
  • Strengthens geographic/disability-focused allocation criteria and public engagement requirements, likely increasing transparency and targeting of funds.
  • Changes to definitions (e.g., downtown area criteria, middle-income) may broaden or narrow eligibility for specific projects depending on local conditions.
  • Implementation will require the Authority to update rules, allocation formulas, and outreach procedures; coordination with other funding sources will be important to avoid duplication.

If you want, I can produce a side-by-side of the current statutory text vs. the proposed text for the most important sections (definitions and allocation formula).

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

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