Michigan Laws 125.2706 – Disposition of rent receipts
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(1) If the local governmental unit acts as the administrator under this act, the rental receipts shall be deposited in a separate fund within the general fund of the local governmental unit. If the local governmental unit contracts with a nonprofit community organization to act as the administrator under this act, the rental receipts shall be deposited in a segregated escrow account in a financial institution located in this state.
(2) Rental receipts deposited under subsection (1) shall be used to make loans to qualified buyers in that local governmental unit for the improvement, repair, or rehabilitation of property in the urban homestead program, pay the costs of the audit under section 8, and, as long as the yearly costs do not exceed 40% of the yearly rental receipts, may pay the costs associated with administrating the provisions of section 4. Loans shall be made for a term not to exceed 10 years and at a rate of interest not to exceed the qualified loan rate. The administrator shall determine the terms and conditions of the loan agreement.
Terms Used In Michigan Laws 125.2706
- Administrator: means a local governmental unit, or a nonprofit community organization under contract with a local governmental unit. See Michigan Laws 125.2702
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Local governmental unit: means a county, city, village, or township. See Michigan Laws 125.2702
- Nonprofit community organization: means an organization exempt from taxation under section 501(c)(3) of the internal revenue code of 1986 with experience in housing issues and that contracts with a local governmental unit to administer an urban homestead program under this act. See Michigan Laws 125.2702
- Qualified loan rate: means an interest rate not to exceed the adjusted prime rate determined in section 23 of 1941 PA 122, MCL 205. See Michigan Laws 125.2702
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(3) The administrator may solicit funds from any and all sources, both public and private, for deposit into the accounts and funds described in subsection (1).