The purpose of this article is to provide for the maintenance and protection of the health, safety and general welfare of the public and those citizens who are of low income and moderate income by ensuring affordable housing is not permanently removed from the housing stock without adequate prior notice, to prevent the sudden displacement of these low- and moderate-income households from the City, and to prevent homelessness.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-02 (JCC. 1/14/20, Pass. 2/4/20, App. 2/10/20, Pub. 2/18/20, Eff. 2/18/20).
For purposes of this article, the following words and phrases shall have the meaning respectively ascribed to them by this section:
Affordable means, as generally defined by the U.S. Department of Housing and Urban Development, housing for which the occupants are paying no more than 30 percent of their income for gross housing costs, including utilities.
Affordable housing development means any multi-family dwelling available for rent or lease that is in receipt of a government funded loan, grant, tax abatement, tax incentive, rent subsidy, or other subsidy from any federal, state, or local governmental body or agency and whose rent levels or tenant rent payments are restricted as a result of the receipt thereof, so as to be affordable to low- and moderate-income households.
Affordable housing restriction means any multi-family dwelling available for rent or lease whose rent levels or tenant rent payments are restricted as a result of the receipt of government contractual arrangement, financial loan, assistance or subsidy, so as to be affordable to, low- and moderate-income households.
Area Median Income means the median family income for the Detroit-Warren-Livonia Metropolitan Statistical Area, as published by the U.S. Bureau of Census and the U.S. Department of Housing and Urban Development. Department means the City of Detroit Housing and Revitalization Department.
Expiration means to bring to an end or conclude any agreement, government funded loan, tax abatement, tax incentive, or other subsidy from any federal, state, or local governmental body or agency under the terms provided, to conclude the transaction at its original or renewed ending date.
Low income means a household whose income does not exceed 80 percent of the Area Median Income, as determined by the U.S. Department of Housing and Urban Development, with adjustments for smaller or larger families.
Moderate income means a household whose income is more than 80 percent and not more than 95 percent of Area Median Income, as determined by the U.S. Department of Housing and Urban Development, with adjustments for smaller or larger families.
Multi-family dwelling means a structure, located on a single lot, containing three or more dwelling units, each of which is designed for or occupied by one family only, with separate housekeeping and cooking facilities for each.
Planned termination means to bring to an end, conclude or extinguish any agreement, government funded loan, tax abatement, tax incentive, or other subsidy from any federal, state, or local governmental body or agency under the terms provided, by expiration, pre-payment or other method to conclude the transaction prior to its original ending date including the failure to renew or termination of the contract for business reasons.
Unplanned termination means to bring to an end, conclude or extinguish any agreement, government funded loan, tax abatement, tax incentive, or other subsidy from any federal, state, or local governmental body or agency under the terms provided, due to foreclosure action or failure to meet physical inspection standards.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-02 (JCC. 1/14/20, Pass. 2/4/20, App. 2/10/20, Pub. 2/18/20, Eff. 2/18/20).
(a) It shall be unlawful for any person to violate any provision of this article.
(b) Any person who violates this article may be issued a misdemeanor violation for each day that the violation continues.
(c) Any person who is found guilty of violating any provision of this article shall be convicted of a misdemeanor for each violation that is issued and, in the discretion of the court, may be fined up to $500,00 and sentenced up to 90 days in jail, or both, for each misdemeanor violation that is issued.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-02 (JCC. 1/14/20, Pass. 2/4/20, App. 2/10/20, Pub. 2/18/20, Eff. 2/18/20).
(a) This article is applicable to any current or future agreement for multi-family dwellings available for rent or lease that is part of an affordable housing development.
(b) The provisions of this article are in addition to, not in lieu of, applicable state or federal laws governing the sale or other disposition of real property that would either result:
(1) In the discontinuance of its use as an affordable housing development; or
(2) In the termination of any low income or moderate income use restriction.
(c) This article does not infringe upon a property owner’s right to sell or dispose of real property or to raise rents upon the termination of applicable affordability covenants or when the property is no longer an affordable housing development.
(d) This article establishes local notice requirements that provide information regarding an affordable housing development’s status to the City, to any applicable state or federal agencies, and to the tenants of that property.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-02 (JCC. 1/14/20, Pass. 2/4/20, App. 2/10/20, Pub. 2/18/20, Eff. 2/18/20).
(a) At least 12 months prior to any planned termination of applicable affordability covenants, the owner of an affordable housing development shall file with the Office of the City Clerk and deliver to the Director of the Detroit Housing Commission, the Director of the Housing and Revitalization Department, and to each tenant a Notice of Intent to Terminate an existing federal, state, or local government contractual arrangement, financial loan, assistance or subsidy that is the underlying foundation of the affordable housing restriction.
(1) A Notice of Intent to Terminate shall include the following information:
a. The contact information of each owner of the affordable housing development including name, address, telephone number and email address or for any owner that is a corporation, limited-liability company, partnership, or other entity required to have a resident agent, and the aforementioned contact information for the resident agent only, as well as local branch information if the entity is not headquartered in the State of Michigan;
b. The name of the housing subsidy, federal, state, or local program name and identification number applicable to the affordable housing development;
c. The date of the intended or expected termination; and
d. A description of the basic legal rights of the affected tenants with regard to the termination of the affordable housing restriction and a list of local housing agencies and social service entities that may be of assistance.
(2) In addition to the information contained in Subsection (a)(1) of this section, notices provided to the Director of the Detroit Housing Commission and the Director of the Housing and Revitalization Department shall also include the following information:
a. A copy of the document or reference information if it is a recorded document that is the basis for the underlying subsidy;
b. The total number of subsidized rental units in the development subject to termination as well as a breakdown of the number of those units occupied by tenants 62 years of age or older, occupied by disabled persons, and occupied by individuals with children;
c. The current rent schedule for the subsidized rental units; and
d. The anticipated rent schedule after termination. Where maintaining ownership, the owners shall give the best estimate to define anticipated rents after termination, but shall not be bound by the estimates provided.
(3) The 12-month notice period shall commence on the date the Notice of Intent to Terminate has been filed with the Office of the City Clerk.
(b) At least 12 months prior to the termination or non-renewal of affordable housing restrictions, an owner of an affordable housing development shall provide a summary of the Notice of Intent to Terminate that is required in Subsection (a) of this section. The summary shall clearly state that the affordable housing restriction is ending and the anticipated date the rent schedules are expected to change. The summary shall be:
(1) Posted in a conspicuous area in the hallway of each floor, in each elevator, and in at least two common areas of the building; and
(2) Included in every tenant’s rent bill at least once.
(c) If on the effective date of this article, the federal, state, or local government contractual arrangement, financial loan, assistance or subsidy that is the underlying foundation for the affordable housing restriction will terminate or expire in less than 12 months, or where an unplanned termination occurs, the owner shall provide immediate notice to the City and the affected tenants as set forth in Subsection (a) of this section and post notice as set forth in Subsection (b) of this section.
(d) The owner of an affordable housing development shall file with the Office of the City Clerk and deliver to the Director of the Detroit Housing Commission, the Director of the Housing and Revitalization Department, and to each tenant a written reminder of the date the affordable housing restriction will terminate as follows:
(1) At least six months prior to the planned termination of affordable housing restrictions: or
(2) Within one week of an owner being notified of an unplanned termination of affordable housing restrictions.
(e) Owners of affordable housing developments are exempt from the requirements of this section where:
(1) The owner is refinancing the project and preserving all affordable housing requirements and restrictions; or
(2) The property is being sold to a buyer who has entered into a regulatory agreement that will preserve the current affordability requirements and restrictions; or
(3) Additional restrictions are present to preserve the affordability of units within the affordable housing development.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-02 (JCC. 1/14/20, Pass. 2/4/20, App. 2/10/20, Pub. 2/18/20, Eff. 2/18/20).
The Housing and Revitalization Department shall prepare and submit an annual report to the Mayor and the City Council that includes, at a minimum, the following information for the preceding year:
(1) A list of affordable housing developments where affordability was terminated and the number of units impacted including:
a. Planned terminations where the affordable housing restriction concluded in the preceding calendar year and rent levels are no longer restricted: or
b. Where an unplanned termination of an affordable housing restriction occurred due to foreclosure and the corresponding unexpired affordability period remaining: or
c. Where an unplanned termination of an affordable housing restriction occurred due to a failure to meet physical condition standards and a description of such failures.
(2) A list of properties where the affordable housing restrictions within an affordable housing development may terminate within the following calendar year:
a. By expiration and no plan is in place to extend the affordability period: or
b. Where the Housing and Revitalization Department has been notified that the affordability period will end, bv either planned or unplanned termination, and a plan is in place to extend the affordability period but such plan has not yet been formally executed: or
c. Where the affordability of units was preserved through contract renewal, new financing or other mechanism to maintain the affordable housing restrictions and the length of time of the extension.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-02 (JCC. 1/14/20, Pass. 2/4/20, App. 2/10/20, Pub. 2/18/20, Eff. 2/18/20).
The Department will be responsible for communicating the requirements of this article to owners of current affordable housing developments. This communication shall be in writing and sent annually via first class mail or electronic communication.
Codified by Ord. No. 28-19 (JCC. 7/23/19, Pass. 9/10/19, App. 9/11/19, Pub. 9/20/19, Eff. 10/1/19); Amended by Ord. No. 2020-02 (JCC. 1/14/20, Pass. 2/4/20, App. 2/10/20, Pub. 2/18/20, Eff. 2/18/20).