Section 125.192. 1) Housing and community development program funds may be used for the following activities:

(a)   Acquisition activities. Acquisition in whole or in part by the recipient, by purchase, long-term lease, donation, or otherwise, of  real property (including air rights, water rights, rights-of-way, easements, and other interests   therein)  for  any purpose authorized by the program.

(b)    Rehabilitation, clearance, and remediation activities. Rehabilitation activities include    clearance,    demolition,    and    removal    of    buildings    and  improvements,

movement of structures to other sites, and remediation of known or suspected environmental contamination for a current or proposed housing development or project located in a downtown area or adjacent neighborhood. Demolition of HUD assisted or HUD-owned housing units may be undertaken only with the prior approval of HUD.

(c)   New construction of housing activities or projects located  in  a downtown area or adjacent neighborhood. Construction of a  housing development or projects located in a downtown area or adjacent neighborhood, including housing assisted under federal or state law, through the incurrence

of development costs and predevelopment costs.

(d)  Activities incurring development costs and predevelopment costs.

(e)     Preservation of existing housing or activities related to the preservation of existing housing.

(f)      Activities related to community development projects, infrastructure improvements, economic development projects, blight elimination, and community facilities. Activities under this category shall include acquisition, construction, reconstruction, rehabilitation or installation of community facilities and infrastructure improvements or other incurrence of development costs or predevelopment costs carried out by the recipient. In undertaking such activities, design features and improvements which promote energy efficiency may be included. Such activities  may  also  include the execution of architectural design features and similar treatments intended to enhance the aesthetic quality of facilities and improvements receiving assistance. Such community facilities include, but are  not  limited   to, shelters for the homeless; battered spouse shelters; halfway houses for run-away children, drug offenders or parolees; group homes for mentally retarded persons and temporary housing for disaster victims.

(g)    Activities incurring insurance costs related to any purpose authorized by the program.

(h)    Activities involving operating, replacement and other reserves related to any purpose authorized by the program.

(i)     Activities providing down payment and other direct homeownership assistance to low, very low, or extremely low income households.

(j)   Activities providing security deposit assistance to low, very low, or extremely low incomehouseholds.

(k)     Supportive services activities (including labor, supplies, and materials) for Activities providing foreclosure prevention  or   foreclosure assistance to low, very low, or extremely low income households, INCLUDING BUT NOT LIMITED TO THOSE CONCERNED WITH EMPLOYMENT, CRIME PREVENTION, CHILD CARE, HEALTH, DRUG ABUSE, EDUCATION, FAIR HOUSING COUNSELING, ENERGY CONSERVATION, WELFARE, HOMEBUYER DOWNPAYMENT ASSISTANCE, OR RECREATIONAL NEEDS TO A PERSON, PERSON WITH DISABILITIES OR PERSON WITH SPECIAL NEEDS. TO BE ELIGIBLE FOR ASSISTANCE, A SUPPORTIVE SERVICE MUST BE EITHER A NEW SERVICE OR A QUANTIFIABLE INCREASE IN THE LEVELOF AN EXISTING SERVICE ABOVE THAT WHICH HAS BEEN PROVIDED IN THE 12 CALENDAR MONTHS BEFORE THE SUBMISSION OF THE FUNDING APPLICATION. .

(l)     Activities related to individual development accounts established under the individual or family development account program act, 2006 PA 513, MCL 206.701 to 206.711.

(m)   Activities related to ending homelessness.

(n)    The provision of assistance either through the recipient directly or through public and private organizations, agencies, and other subrecipients (including nonprofit and for-profit subrecipients) to facilitate economic development projects or activities that support housing development that does the following:

(i)   Provides financial support for the establishment, stabilization, and expansion of business enterprises.

(ii)   Provides technical assistance, advice, and business support services to  owners of business  enterprises   and   persons   developing   business enterprises.

(iii)    Provides general support, including, but not limited to, peer support programs, counseling, child care, transportation, and other similar services, to owners of business enterprises and persons developing business enterprises.

(iv)       Assistance under this subdivision may also include training, technical assistance, or other support services to increase the capacity of the recipient or subrecipient to carry out the activities under this subdivision.

(o)       Assistance activities provided to public or nonprofit entities, including municipalities and land bank fast track authorities organized under the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, to increase the capacity of such entities to carry out program eligible housing development, neighborhood revitalization or economic development activities.

(p)   Predatory lending prevention or relief.

(q)    Any other housing and community development fund or program activities authorized under the authority's act.

(2)   Ineligible applicants include the following:

(a)   An applicant, recipient, or an  entity   in  which  the  applicant   or recipient has or had a controlling interest, either failed to submit or is now delinquent in providing an explanation, evidence ofcorrective action or a payment of disallowed costs or fees as a result  of  a program  funding monitoring review.

(b)   An applicant, recipient, or an  entity   in  which  the  applicant   or recipient has or had a controlling interest, is currently delinquent on any loan payments or any fees due and payable to the authority.

(c)   An applicant, recipient, or an  entity   in  which  the  applicant   or recipient has or had a controlling interest, has been or is barred, suspended, or terminated from procurement in a state or federal program or listed in the list of  parties  excluded from federal procurement or non-procurement programs or has otherwise  been debarred  by HUD  or  the authority.

(d)  Any individual acting as an owner, member, principal, officer, manager or key employee of the applicant, recipient, or an entity  in  which  the applicant or recipient has or had a controlling interest, has been convicted of a state or federal felony crime involving fraud, bribery, theft, misrepresentation of material fact, misappropriation of funds, or other similar criminal  offenses  within  fifteen  years  preceding   the application deadline.

(e)   An applicant, recipient, or an  entity   in  which  the  applicant   or recipient has or had a controlling interest, at the time  of   application submission is subject to any of the following:

(i)   Enforcement or disciplinary action under state or federal securities law or by the NASD.

(ii)   A federal tax lien.

(iii)   An enforcement proceeding with any governmental entity.

(f)  An applicant, recipient, or an  entity  in   which  the  applicant  or recipient has or had a controlling interest has open and/or unresolved audit issues with HUD or the authority related to this program or other programs administered by HUD or the authority.

(g)     A submitted application is incomplete; lacks required supporting documentation; or is so unclear or disjointed that, in the discretion of the authority, it cannot reasonably be reviewed to determine whether it meets program criteria. If an application is determined to be ineligible pursuant to this rule, the application will be terminated. To the extent that the authority staff was able to complete a limited application review, specific reasons for the authority's determination of ineligibility shall be included in the termination letter to the applicant.

(h)   An applicant or recipient or a person who has or had a  controlling interest in the applicant or recipient has an ownership interest or exercises control of 1 or more rental housing properties in the state  of   Michigan subject to a regulatory agreement or tax credit regulatory agreement with the authority and is in material noncompliance with such regulatory agreement  or tax credit regulatory agreement.

(i)   Any application that includes financial participation by a person who, during the 5-year period preceding the date of the bid or award, has been convicted of violating a federal law in connection with a contract awarded by the federal government for relief, recovery, or reconstruction efforts as a result of any disaster occurring after January 1, 2000, or was assessed a federal civil or administrative penalty in relation to such a contract.

(j)     Applications for proposals which cause or result in the  permanent displacement of low, very low, or extremely low income households. Low, very low, or extremely low income households who may be temporarily displaced by the rehabilitation of affordable housing may be eligible for compensation of moving and relocation expenses. If a recipient violates  the  dislocation  provisions  of  this subsection, that recipient shall repay program monies and the landlord/developer must pay the affected parties' costs  and  all  moving expenses.

History: 2008 AACS; 2009 AACS.