Snyder signs bills to help Michigan families get home improvement loans

Just as the housing market is showing signs of recovery, Gov. Rick Snyder on Wednesday signed legislation that will help keep the momentum going by updating and realigning several Michigan State Housing Development Authority programs. House Bill 5617, sponsored by state Rep. Dale Zorn, increases the income limit for borrowers in the Property Improvement Program, or PIP, which provides loans for home improvements to families of low to moderate incomes. The new limit will be $105,700, updated from the previous $74,750 for eligible distressed communities and $65,000 for non-distressed communities. This is the first update in the income limit since 2004. The bill also allows families 30 years to repay the loan, rather than only 20 years. "I thank the Legislature for providing more clarity and continuity in the income limits for MSHDA," Snyder said. "We are committed to providing accessible, quality housing programs for our families of low to moderate incomes." H.B. 5618, sponsored by state Rep. Deb Shaughnessy, includes the entire state in the eligible area for MSHDA's pass-through program, which allows the agency to sell bonds for a project and lend the proceeds to a developer. Previous law restricted the program to eligible distressed areas, those with at least 20 percent of housing allotted for those of low to moderate incomes. H.B. 5620, sponsored by state Rep. Wayne Schmidt, aligns the income limits for the Mortgage Credit Certificate program with the PIP, creating greater administrative efficiency and removing customer confusion. MCCs allow borrowers a credit on their federal income tax equal to a percentage of the interest they pay on their home mortgage loan. The bills now are Public Acts 344, 345 and 346 of 2012. For additional information on the bills, visit www.legislature.mi.gov or www.michigan.gov/mshda and click on Home Improvement for details on the PIP program or on Homeownership for details on the MCC program. Families interested in the PIP program should call 517-373-8017 for more information. Published: Fri, Nov 9, 2012

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