MI SB1124

Amends the state housing development authority's powers under the 1966 Housing Development Authority Act to permit investment of escrow account funds held by or for the authority.

Authorizes the authority to invest up to 20% of funds held in escrow accounts into loans for construction or rehabilitation of multifamily housing developments without requiring escrow depositor consent.

Requires that escrow fund investments only be made when the loan return is comparable to investments of similar credit quality and maturity, and the authority agrees to cover delinquent payments exceeding 30 days from its own funds.

Excludes certain escrow accounts from the investment authorization, including "development cost escrow principal" and "operating assurance reserve" accounts.

Effective immediately upon Governor's approval on October 9, 2012.