Michigan Senate Bill SB0278

Michigan 2025-2026 Regular Session

• Introduced: 5/1/25
• Refer: 5/1/25

Caption

Housing: other; housing and community development fund; modify. Amends secs. 58, 58b & 58c of 1966 PA 346 (MCL 125.1458 et seq.).

Impact

The amendments target a more systematic approach to funding allocations for housing projects. Specifically, the bill stipulates that not less than 25% of the funds must be dedicated to projects that do not qualify under special population preferences, ensuring a broader distribution of resources. Moreover, at least 30% of the fund is earmarked for projects that specifically target extremely low income households, including a variety of housing options such as supportive housing and transitional housing. This could significantly improve the housing situation for vulnerable populations throughout Michigan.

Summary

Senate Bill 0278 proposes amendments to the State Housing Development Authority Act of 1966, focusing on expanding the Michigan Housing and Community Development Program. The bill aims to enhance the allocation and use of funds designated for housing projects, particularly aimed at assisting low income, very low income, and extremely low income households. By modifying Section 58, 58b, and 58c, the bill introduces clearer definitions of eligible applicants, including for-profit and non-profit corporations, municipalities, and partnerships focused on affordable housing initiatives in downtown areas and adjacent neighborhoods.

Contention

While proponents argue that the bill is necessary for addressing the state's affordable housing crisis, opponents may raise concerns regarding the potential sufficiency and management of the allocated funds. Questions arise regarding whether the stipulated percentages truly meet the needs of the communities they aim to serve, particularly as housing markets and demographic needs evolve. Additionally, there could be fears about bureaucracy in fund allocation and the actual implementation of the plans detailed in the biennial allocation strategy proposed within the bill.