Section 125.105. Income limitations.

Rule 105. (1) For a  household  to  be  considered  eligible for  initial occupan-cy in a housing project or housing unit financed by the authority, that household's income shall  not  exceed  the  following household  income limita-tions:

(a)      Unless otherwise permitted by the act, for housing, other than single family housing units, that has been financed by the proceeds of authority bonds which have been delivered before June 9, 1977, the effective date of certain emergency rules that temporarily effectuated the provisions of subdivisions (b) and (c) of this subrule, a household shall  not  have  an adjusted household income of more  than  $12,000.00 plus $500.00 for each member of the household in addi-tion to the head of the household and his or her  spouse;   provided,  however,  that   the  authority,   by resolution, may deter-mine, with respect to a particular hous-ing project, that 20% of the dwelling units in that project shall be available for occupancy by households having adjusted household incomes of not more than 125% of that established in this subdivision. Such resolution shall include determinations by the authority that the project could not be marketed success-fully without the higher income limit and that the project is in compliance with either of the following:

(i)     It is located in a city, other than a central city, with a per capita personal income less than the per capita personal income for the state.

(ii)      It is located elsewhere and the number of units for households with incomes eligible for public housing or a program equivalent is at least equal to the number of units for households with incomes between the 100% and   125% limits.   The $12,000.00

amount    established    in    this    subdivision      shall     be  auto-matically     increased    in accordance with  the following  formula:

($12,000.00) + ($12,000.00 x .07 x n) where n is the number of complete years elapsed since January 1, 1973.

(b)      Unless otherwise permitted by the act, for housing, other than single- family housing units, that has been financed before May 1, 1984, and that has not been financed by proceeds of authority bonds which have been deliver-ed before June 9, 1977, a household shall not have a gross income of more than $28,000.00, which is the estimated median family income in Michigan. provided, however, in the case of shared housing, a gross income limit of $15,000.00 shall be applied separately to each household assigned separate sleeping and bathroom facilities, notwithstanding the sharing of other living space.

(c)     For all single-family housing units, a household shall not have a gross income in excess of that permitted in the act.

(d)    Notwithstanding the provisions of subdivisions (a), (b), and (c) of this subrule, but subject to the act, a household may have a gross income up to that established pursuant to the following formula: 1.5 x a x 1.07n, where a is the median family income for the  county in  which  the  proposed

housing is to be located, as identified in the publication entitled "1969 and Estimated 1977 Decile Distributions of Family Income by SMSA's and Non-Metropolitan Counties," prepared by the United States department of housing  and  urban development, office of economic affairs, economic and market analysis divi-sion, June 1, 1977, and where n is the number of complete years elapsed since June 1, 1977, if the authority,  by resolution, makes all of the following determinations:

(i)       The economic integration encouraged by the higher income limits shall pro- mote the financial and social stability of housing financed or to be financed by the authority.

(ii)       Private enterprise has failed to provide a substantial supply of adeq-uate, safe, and sanitary dwellings in the area of the housing proposed for occupancy by households which qualify for assistance pursuant to this subdi-vision within the financial means of, and suitable for, such households.

(iii)     The housing shall be located in an area in a central city which meets

the criterion set forth in paragraph (ii) of this subdivision. The publica-tion entitled "1969 and Estimated 1977 Decile Distributions of Family Income by SMSA's and Non-Metropolitan Counties" is herein adopted by reference.  Copies are available from the United States Department of Housing and Urban Develop-ment, Market Analysis Division, 477 Michigan  Avenue, Detroit, Michigan 48226 at a cost of 35 cents and from the Michigan State Housing Development Authority, 401 South Washington Square, Lansing, Michigan 48909, at no cost.

(e)     Notwithstanding the provisions of subdivisions (a),  (b),  and  (d)  of this subrule, a household may have a gross income up to the income limits set forth in sections 44(1)(a)(iv), 44(1)(a)(v), and 44(1)(b) of the act, if the authority, by resolution, determines that  the higher  income  limits  shall

pro-mote the authority's ability to preserve the low income occupancy of the housing project.

(f)    For housing, other than single-family housing units,  that   has  been financed on or after May 1, 1984, a household shall not have a gross income in excess of that permitted in the act.

(2)        If a household income limitation is a requirement for an assumption of a mortgage on a single  family   housing  unit,  then   the  household   income limita-tion for a household to be considered eligible to assume a mortgage on a single family housing unit shall be the highest household income limitation ever established in subdivision (c) of subrule (1) of this rule.

(3)       If federal subsidy payments  are made on behalf of occupants of

authority-financed dwelling units or housing units, then the income limitations established in this rule shall be superseded by federal laws and regulations applicable with respect to those applicants.

(4)       If the program providing the funds for a loan or grant is subject to laws, regulations, rules, or other requirements which have particular income or other programmatic restrictions, or if the entity providing the funds for a loan or grant has particular income or other programmatic restrictions, then the authority may elect to apply some or all of these restrictions, instead of those which would otherwise be applicable pursuant to this rule.

(5)       Subrule (1) of this rule does not apply to households applying for a home improvement loan pursuant to part 8 of these rules.

(6)     The income limitation contained in subrules (1) and (2) of this rule is subject to state and federal laws which may establish income limitations as a prerequisite to obtaining tax-exempt status of authority notes and bonds.

History:   1979 AC; 1980 AACS; 1981 AACS; 1982 AACS; 1983   AACS   1985   AACS; 1986