Section 125.191. Definitions.

Definitions provided for in part I of the authority's rules, R 125.101 to R 125.103, shall apply to the provisions of this part, unless superseded in this rule as follows:

(a)     "Adjacent neighborhood" means a residential area as determined by the authority immediately adjoining or near a downtown area within  the  same municipality.

(b)    "Allocation plan" means the plan referred to in and required by MCL 125.1458b (3).

(c)  "Annual report" means the annual report required under MCL 125.1458b (6).

(d)   "Applicant" means a person who has submitted an application, proposal, or other documentation related to a request for an award of housing and community development fund monies meeting the requirements contained in the applicable NOFA or RFP related to the applicable application year.

(e)   "Biennial plan" means the allocation plan as defined in subdivision (b) of this subrule.

(f)   "Chief Executive Officer" or "CEO" means the senior manager responsible for overseeing the activities of the entire company or organization. The CEO usually holds a position on the board of directors  of   the  company or organization and may also hold the title of president.

(g)        "Chief Financial Officer" or  "CFO"   means  the   company's  or organization's top managerial and financial accountant and the individual in charge of the company's or organization's financial matters.

(h)    "Community development" means a process involving the conception, planning, and   implementation  of  projects  or  activities  which  create improvements in, or reduce the extent of declines in, the living standards of people in a particular community.

(i)   "Controlling interest" means the holding by 1 person or group of persons of a majority of the stock or other indicia of ownership of a business entity, giving the holder or holders a means of exercising control over the actions of the entity.

(j)   "Development costs" means the sum total of all costs incurred in a housing development or a partnership project located in a downtown area or special purpose entity that is approved by the authority and that is organized for the purpose of developing and supporting affordable housing for low income, very low income, or extremely low income households, any of which are determined by the authority to qualify for funding under the program.

(k)    "Extremely low income household" means a person, a family, or unrelated persons living together whose adjusted household income is not more than 25% of the median income, as determined by the authority.

(l)    "Formula" means the standard procedure for distributing the program funds across the state as specified in MCL 125.1458b (4) (a).

(m)    "For-profit corporation" means an entity that exists primarily to generate more income than it spends.

(n)    "Housing development costs" means the sum total of all costs incurred in a housing development adjacent neighborhood determined by the authority to be reasonable and necessary,  including but  not  limited  to,  all  of  the following:

(i)   Cost of land acquisition and any buildings on  the  land,   including payments for options, deposits, or contracts to purchase properties on the proposed housing development site or project located in a downtown area  or adjacent neighborhood site or payments for the purchase of properties.

(ii)   Cost of site preparation, demolition, and clearing.

(iii)    Architectural, engineering, legal, accounting, corporation, and other fees paid or payable in connection with the planning, execution, and financing of the housing development or project located in a downtown area or adjacent neighborhood and the finding of an eligible mortgagee or mortgagees for the housing development or project located in a downtown area or adjacent neighborhood.

(iv)   Cost of necessary studies, surveys, plans, and permits.

(v)   Insurance, interest, financing, tax and assessment costs, and other operating and carrying costs during construction.

(vi)      Cost of construction, rehabilitation, reconstruction, fixtures, furnishings, equipment, machinery, apparatus, and similar facilities related to the real property.

(vii)          Cost of land improvements, including landscaping and offsite improvements.

(viii)   Necessary expenses in  connection  with  initial  occupancy of  the housing development or the project located in a downtown area or adjacent neighborhood.

(ix)    A reasonable profit and risk fee in addition to job overhead to the general contractor and, if applicable, a limited-dividend housing sponsor.

(x)     An allowance established by the authority for  working  capital  and contingency reserves and reserves for any anticipated operating deficits during construction and initial occupancy.

(xi)   Cost of other items that are determined to be reasonable and necessary for the housing development or project located in a downtown area or adjacent neighborhood, less any net rents and other net revenue received from the operation of the real and personal property on the development site or project site during the construction.

(k)   "Downtown area" means an area where 20 or more contiguous properties have been planned, zoned, or used for commercial purposes  for  50  or   more years and where a majority of the buildings are built adjacent to each other as determined by the authority and up to the public right-of-way. To be a downtown area, the area shall contain a significant number of multilevel, mixed use buildings and property in the downtown area must be owned  by more than 3 private owners.

(l)   "Eligible applicant" means a not-for-profit corporation,  a   for-profit corporation, a municipality, a land bank fast track authority organized under the land bank fast track act, 2003 PA 258, MCL 124.751 to MCL 124.774, or a partnership or special purpose entity that is approved by the authority and that is organized for the purpose of developing and supporting affordable housing for low income, very low income, or extremely low income households, or projects located in a downtown area or adjacent neighborhood, any of which are determined by the authority to qualify for funding under the program.

(m)    "Extremely low income household" means a person, a family, or unrelated persons living together whose adjusted household income is not more than 25 30% of the area median income, as determined by the authority.

(n)   "Formula" means the standard procedure for distributing the program funds throughout the state based on the number of  persons   experiencing poverty, economic and housing distress as specified in MCL 125.1458b (3) (A).

(o)   "For-profit corporation" means an entity that exists  primarily  to generate more income than it spends.

(p)     "Homelessness" means lacking a fixed, regular, and adequate nighttime residence with priority given to those living in any of the following:

(i)   A publicly or privately operated shelter and/or transitional facility designed to provide temporary living accommodations.

(ii)    A public or private place not designed for, or ordinarily used as a regular sleeping accommodation for human beings.

(iii)    An institution that provides temporary residence   for  individuals intended to be institutionalized.

(q)     "Housing development" means single-family homes, rental developments, elderly developments, affordable assisted living developments, supportive housing developments, and any work or undertaking financed in whole or in part under this part for the primary purpose of acquiring, constructing, or rehabilitating housing for low, very low, or extremely low income households in need of housing. An undertaking may include any buildings, land, equipment, facilities, or other real or personal property that is necessary, convenient, or desirable in connection with a development, including but not limited to streets, sewers, utilities, parks, site preparation, landscaping, and other non-housing facilities determined to be necessary,  convenient,  or desirable.

(r)        "HUD" means the United States department of housing and urban development, the federal department responsible  for  the  major  housing programs in the United States.

(s)        "Lookback" means the process of reviewing an intended proposed distribution of program funds in a program year to ensure compliance with the earmark requirements provided in the statute and these rules.

(t)   "Low income household" means a person, a family, or unrelated persons living together whose adjusted household income is more than 50% but not more than 60% of the median income, as determined by the authority.

(u)    "Michigan housing and community development fund"  means  the  fund created in MCL 125.1458a.

(v)      "Michigan housing and community development program fund advisory committee" means the program committee created inpursuant to  MCL 125.1458b.1458e.

(w)   "Michigan housing and community development program" means the program created in MCL 125.1458b.

(x)    "Mixed use buildings" means buildings that can be used for more than 1 purpose, and in any combination, including, but not limited to, residential housing combined with either commercial or retail space.

(y)   "NOFA" means a notice of funding availability issued pursuant to this rule and the applicable statutory law governing the program.

(z)   "Not-for-profit corporation" means a public or private corporation that meets all of the following:

(i)   Is organized under state or local laws.

(ii)    Has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual.

(iii)   Has a current tax exemption ruling from the internal revenue service

(IRS) under section 501(c)(3), a charitable, nonprofit corporation, or section 501(c)(4), a community or civic organization, of the internal revenue code of 1986, as evidenced by a certificate from the IRS that is dated 1986 or later. The exemption ruling must be effective on the date of  the application and must continue to be effective throughout the length of any contract agreements; or classification as a subordinate of a central organization non-profit under the internal revenue code, as evidenced by a current group exemption letter, that is dated 1986 or later, from the IRS that includes the applicant. The group exemption letter must specifically list the applicant.

(iv)   A private nonprofit organization's pending application   for  section 501(c) (3) or (c) (4) status does not comply with the tax status requirement.

(aa) "Persons with disabilities" means a household composed of 1 or more persons, at least 1 of whom is a person who has a disability that is a physical or mental impairment that substantially limits 1 or more major life activities; has a record of such impairment; or is regarded as having such an impairment as defined in the developmental disabilities assistance and bill of rights act (42 U.S.C. §15002).

(bb) "Persons with special needs" means adult individuals or categories of adult individuals determined by the authority to have unmet housing and supportive service needs and may include any household composed of 1 or more persons with physical, mental, or emotional impairment of long-term duration, including, but not limited to, alcohol and/or drug addictions, persons with disabilities including profound deafness and the legally blind, victims of domestic violence, persons with HIV/AIDS, homeless populations, migrant farm workers, and individuals that are recipients of Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits. In addition to a physical, mental, or emotional impairment, the person must have a substantial and sustained need for supportive services assistance in at least two of the following life-skills  areas  in  order  to  successfully live

independently:

(i)     The ability to independently meet personal care needs, economic self- sufficiency (capacity for sustained and successful functioning is vocational, learning and employment contexts).

(ii)    Use of language (ability to effectively understand, be understood, and handle communication as needed on a daily and ongoing basis).

(iii)      Instrumental living skills (managing money, getting around in the community, grocery shopping, complying with prescription requirements, meal planning and preparation, mobility).

(iv)   Self direction skills (making decisions/choices about one's day-to-day activities and regarding one's future.) "Persons with special needs" shall also include persons legally responsible for caring for persons with  special needs.

(cc) "Predevelopment costs" means reimbursable costs, related to a specific eligible housing, downtown, or adjacent neighborhood project, that  meet  all of the following:

(i)     Predevelopment project costs that are determined to be customary and reasonable by the authority, including but not limited to,  consulting   fees, architectural

fees, engineering fees, and costs related to the engagement   of a development team, costs related to establishing site control,  and  costs related to title clearance.

(ii)      Pre-construction project costs that are determined to be customary and reasonable by the authority, including but not limited to, the costs of obtaining architectural plans and  specifications,   zoning  approvals, engineering studies, and legal fees.

(iii)     Predevelopment  costs  do  not  include   general   operational   or administrative costs.

(zd) "Project" means those activities defined under MCL 125.1458C.

(ee) "Recipient" means an eligible applicant receiving funds or other assistance under the program. The term recipient shall also include a subrecipient and any requirement applying to a recipient shall likewise apply to a subrecipient.

(ff) "Rental housing project" means a housing development consisting of 1 or more dwelling units that will be rented to individuals or families meeting applicable occupancy and income requirements related to  the nature of  the housing unit or development.

(gg) "RFP" means "request for proposals." An RFP is an announcement of a willingness to consider proposals requesting the awarding of program funds for a particular use or uses related to the fund or program.

(hh) "Special purpose entity" means a legal entity created for the primary purpose of sponsoring, originating, creating, sustaining, or assisting  the provisioning of housing to low, very low, or extremely low income households the costs of which, if not funded from other sources, are reasonably fully payable out of the persons monthly income, including earned income,  grants, or other public or non-public assistance.

(ii) "State" means the state of Michigan and any state level component units thereof.

(jj) "Statute" means the state housing development authority act of 1966, 1966 PA 346, MCL 125.1401 et seq.

(kkgg) "Supportive housing" means a rental housing project in which some or all of the units are targeted to persons with household incomes at or below 30% of area median income and that provide services, either directly or contracted for, to those persons with special needs that include, but are not limited to, mental health services, substance abuse services, counseling services, and daily living services.

(ll) "Very low income household" means a person, a family, or unrelated persons living together whose adjusted household income is not more than 50% of the median income, as determined by the authority.

History: 2008 AACS; 2009 AACS.