Michigan state Rep. Betsy Coffia sits in committee on Nov. 12, 2024.
LANSING, Mich., Jan. 21, 2025 — House Bills 5030, 5031 and 5032 were recently signed into law by Gov. Gretchen Whitmer. These bills will bring the Michigan State Housing Development Authority (MSHDA) into further alignment with federal standards and neighboring states while supporting our state’s affordable housing goals.
HB 5030, sponsored by state Rep. Betsy Coffia (D-Traverse City), will support affordable housing expansion in Michigan by giving MSHDA more flexibility with its current funding. This bill will grant MSHDA discretion for when to cancel its own debt rather than requiring it to cancel the debt upon purchasing it. These changes will help streamline MSHDA’s operations, allowing the authority to save millions of dollars and better use its resources to address Michigan’s accessible housing shortage.
“Ensuring all Michiganders have access to safe, affordable housing is a fundamental priority,” said Coffia. “These changes to MSHDA’s policies will bring outdated housing price limits in line with today’s market, allowing more families to secure homeownership opportunities. Additionally, by empowering MSHDA with greater flexibility, we can better support first-time homebuyers, improve accessibility for individuals with disabilities and strengthen our communities across Michigan.”
HB 5031, sponsored by Democratic Leader Ranjeev Puri (D-Canton), will allow for better representation within MSHDA by amending the scope of participation of the designated resident member of MSHDA.
“The work MSHDA does is critical to helping Michiganders have access to affordable housing and ultimately a safe place to call home. What they take part in is truly life changing for many,” Puri said. ”My bill becoming law means that MSHA’s board can run more efficiently, helping them tackle the housing crisis faster and more effectively across the state.”
HB 5032, sponsored by state Rep. Will Snyder (D-Muskegon) removes outdated caps and increases the maximum purchase price or maximum appraised value for loans made by MSHDA for eligible purchasers and increases the allowable purchase price of property if unexpected costs arose during construction from $3,500 to $10,000 for property used by disabled individuals. This bill will expand MSHDA’s ability to provide mortgage assistance in today’s housing market, supporting homeowners and prospective homebuyers afford housing in Michigan. The changes will also help more people attain homeownership by allowing more MSHDA program participants to compete with cash buyers.
“This package addresses housing affordability by making home ownership a realistic goal for many across our state,” Snyder said. “Giving the state the flexibility to take on bigger projects will create more affordable housing to combat the ongoing housing crisis and will allow Michiganders to more easily live, work, and start a family in their home state.”
“These common sense, bipartisan bills will bring more fairness and opportunity into Michigan’s housing market,” said Amy Hovey, MSHDA’s CEO and executive director. “Qualified Michigan first-time homebuyers will now be eligible to purchase homes under the same set of rules as our neighbors in other Great Lakes states. Our increased flexibility in the bond market will result in savings. All our board members will now have the same set of rights and responsibilities. We are grateful to our broad coalition of statewide supporters, and for the Legislature and governor for supporting these bills.”
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