SB-1119 Summary

• Changes the Michigan State Housing Development Authority's foundational language from "shall possess" to "has" all powers necessary to carry out its mission, maintaining existing authority without substantive change.

• Grants the authority power to operate as the sole statewide public housing agency in Michigan, with this authority continuing for 3 years from the effective date of the amendment.

• Expands the authority's lending capabilities to include making mortgage loans to subsequent purchasers of properties acquired upon borrower default, even if purchasers do not meet normal income limitations and purchase price limits.

• Authorizes the authority to invest up to 20% of funds held in escrow accounts for mortgagors of authority-financed housing, with the authority agreeing to repurchase delinquent loans under specified conditions.

• Modifies loan document provisions to replace "sums" with "money" in multiple sections and clarifies restrictions on single-family loan assumptions, requiring new purchasers to qualify under income limitations unless federal insurance or guarantee would be diminished.