Detroit — Ch. 22 Art. II Affordable Housing Notification Requirements § 22-2-5

(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, to 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 a recorded document 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, by disabled persons, and 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, which was February 18, 2020, 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 the 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, to 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.