Section R. 125.171 - Land acquisition and development proposalsRule 171.
(1) The authority staff may develop proposals for the use of money in the land acquisition and development fund created by the act. A proposal may be for the following:(a) The acquisition by grant, purchase, or otherwise of real property, which for purposes of this part is defined as any interest, including a fee and leasehold interest, in land or improvements to land, or a portion thereof, by the authority under any of the following circumstances:(i) The real property may be suitable for a future housing development or housing project.(ii) The real property is located in a residential area where the authority has financed or has planned to finance housing, and the proposed use of the real property improves the quality of the residential area by eliminating blight or provides needed public or commercial facilities.(iii) The real property is so situated that the present or future use of the real property, if not acquired by the authority, adversely affects the value or marketability of the authority-financed housing project.(b) Any of the following types of improvements to real property purchased or otherwise acquired for the purposes of the fund:(i) Improvements that are necessary to place the real property in a safe, sanitary, and decent condition, including demolition, excavation, and landscaping.(ii) Improvements to real property that is to be dedicated for the public use and enjoyment, including the installation of recreational facilities, benches, shelters, lighting, and walkways.(iii) Improvements that are necessary to ensure the planned development of the real property, including the installation of roads, sidewalks, sewers, and utilities.(c) The payment of any of the following costs on real property purchased or being purchased with money from this fund or acquired by gift, grant, or exchange for the purposes of this fund: (i) The costs of property taxes, insurance premiums, interest, maintenance expenses, and other carrying charges on real property. Notwithstanding the provisions of section 42 of the act, MCL 125.1442, during the period when real property is owned or is being purchased by the authority or its agent, the authority shall pay all property taxes levied against the real property unless a taxing jurisdiction exempts the real property from property taxes. The assessed valuation of the real property while it is owned or being purchased by the authority or its agent may not be increased by any taxing jurisdiction, except to reflect the state equalization valuation process.(ii) The costs of planning the development of the real property, including, but not limited to, the costs of economic feasibility studies, land use studies, site development planning, architectural and engineering design, market analysis and all related analyses, studies, and planning services.(iii) The costs incurred in the transfer of real property, including brokerage and appraisal fees, recording expenses, and the costs of surveys and title insurance.(d) The costs of improvements to real property permitted by section 24b(2) of the act, MCL 125.1424b.(2) A proposal must contain information as to the description and fair market value of any real property or interest therein proposed to be acquired and the proposed method of acquisition thereof, the nature and cost of any improvements proposed to be undertaken or carrying charges or transfer expenses proposed to be paid, the nature and cost of any planning of the development of real property proposed to be undertaken. A proposal, upon completion, and the executive director's recommendation with respect thereto shall be presented to the authority.Mich. Admin. Code R. 125.171
1979 AC; 2023 MR 6, Eff. 3/21/2023