Section 125.102. Definitions; D to G.

Rule 102.  As used in these rules:

(a)     "Development fund grant" means a grant which is authorized by the authority and which is to be made to an applicant authorized by the act to receive a grant from the housing development fund created by the act.

(b)        "Development fund loan" means a loan which is authorized  by  the authority, and which is to be made from the housing development fund created by the act.

(c)     "Dwelling unit" means living accommodations within a housing project which are intended for occupancy by a single household.

(d)      "Eligible deferred payment loan administering agency" means either a gov- erning body or a subdivision, agency, or instrumentality of a governing body which shall, as of December 31, 1978, have applied for participation in the authority's neighborhood improvement loan program or the Michigan commis-sion on Indian affairs.

(e)     "Executive director" means the executive director employed by the a-uthority who is the chief administrative officer of the authority.

(f)    "Existing housing unit" means a housing unit that has been occupied before the issuance of a commitment by the authority.

(g)     "Family" means 2 or more persons living together not contrary to law.

(h)       "Feasible housing project" means a proposed housing project as to which the authority has made a determination that such project can reasonably be expected to be successfully constructed on the proposed site within cost limit-ations acceptable to the authority and can reasonably be expected to be operated in a fiscally sound manner.

(i)       "Gross income," for determining eligibility, means all income derived from whatever source, as follows:

(i)      In computing gross income, all the income of the members of   the house- hold, other than minors, living in the same dwelling unit and contributing to the expenses of the household is to be considered. Gross income shall be computed without deduction for the following:

(A)    Funds paid into a tax shelter retirement account.

(B)      Losses attributable to a farming syndicate as described in section 464 of the internal revenue code, 26 U.S.C. §464.

(C)        Losses attributable to any type of corporation or partnership engaged in exploring for or exploiting oil and gas resources.

(D)        Losses attributable to any type of corporation or partnership engaged in equipment leasing.

(E)        Losses attributable to any type of corporation or partnership engaged in holding, producing, or distributing motion picture films or video tapes.

(F)      Child support payments made by an applicant for the benefit of the appli- cant's child or children.

(G)    Alimony, separate maintenance, or  similar  periodic  payments   that  an applicant is required to make to a spouse or former spouse.

(ii)     Gross income shall include all of the following:

(A)       The gross amount, before any payroll deductions, of wages; salaries; all overtime earnings in excess of $4,000.00 per annum; commissions; fees; tips; bonuses; gambling winnings; and prizes won, except for Michigan lottery winnings and prizes.

(B)      The net income from the operation of a business or profession or from the rental of real or personal property. For this purpose, if the operation results in a loss, the loss may not be used to offset income generated from other sources. For this purpose, any shareholder that owns 10% or more of any outstanding class of stock in a corporation shall also be deemed to have received income in its proportionate share of net  earnings  not  otherwise dis-tributed in salaries or dividends.

(C)    All dividends and interest, including otherwise tax-exempt interest.

(D)     The full amount of periodic payments received from social security, hous-ing assistance payments, annuities, insurance policies, retirement funds,  pen-sions, disability or death benefits, and other similar  types  of periodic receipts.

(E)    Payments in place of earnings, such as unemployment and disability compen- sation, worker's compensation, and severance pay.

(F)    The full amount of public assistance payments.

(G)     Periodic and determinable allowances, such as alimony and separate main- tenance payments received, housing allowances received, and regular contribu-tions or gifts received from persons who do not reside in the dwell-ing, if such sums are received on a recurrent basis and if such sums may be reason-ably expected to continue.

(H)    The distributive share of partnership income.

(I)    All capital gains.

(J)          Child support payments received by an applicant for the benefit of the applicant's child or children.

(iii)     Gross income does not include any of the following:

(A)    )  Casual, sporadic, or irregular gifts.

(B)      Amounts that are specifically for, or in reimbursement of, the cost of medical expenses.

(C)       Lump sum additions to household assets, such as inheritances; insur-ance payments, including payments under health and accident insurance; worker's com- pensation; and settlements for personal or property losses.

(D)       Amounts of educational scholarships paid directly to the student or to the educational institution, and veterans administration schooling bene-fits.

(E)    Foster child care payments.

(F)      The value of coupon allotments for the purchase of food pursuant to the food stamp act of 1977, 7 U.S.C. §§2011 to 2027, which is in excess of the amount actually charged the eligible household.

(G)    Overtime earnings of $4,000.00 or less per annum.

History: 1979 AC; 1982 AACS; 1985 AACS; 1986 AACS; 1991 AACS; 1998-2000 AACS.