Michigan Laws 125.1432d – Legislative intent
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Terms Used In Michigan Laws 125.1432d
- Authority: means the Michigan state housing development authority created in this act. See Michigan Laws 125.1411
- Internal revenue code: means the United States internal revenue code of 1986. See Michigan Laws 125.1411
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
The legislature intends that the authority explore the possibility of reducing the cost of financing multifamily housing projects through the issuance of variable rate obligations that could be converted to long-term fixed-rate obligations. The authority is authorized to make fixed-rate mortgages with the proceeds of these obligations. The legislature also intends that the authority explore the possibility of providing subsidies to projects to assist owners in meeting the 20-50 test established in section 142 of the internal revenue code.