Detroit — Ch. 22 Art. III Inclusionary Housing Requirements (preempted-pending-review) § 22-3-7

(a) The City shall create an appropriation within the Housing and Revitalization Department's budget deemed the "Detroit Affordable Housing Development and Preservation Fund" for the deposit and expenditure of penalties collected pursuant to this article.
(b) The objective of the Fund is:
(1) To foster and promote the purpose and intent of this article;
(2) To prioritize the means by which funding for new residential housing projects addresses housing for those with the greatest economic need, being households earning up to 50 percent of the Area Median Income;
(3) To increase accessibility to safe, affordable housing for those facing high housing costs;
(4) To prioritize permanent housing affordability and sustainability within the City; and
(5) To prioritize the preservation of existing affordable housing units.
(c) In addition to the deposit of penalties for violations under Section 22-3-6 of this Code, the City's annual budget or an amendment thereto shall contain an appropriation to the Fund. It is expected that the annual appropriation or budget amendment will be not less than 40 percent of the net receipts received by the City of Detroit of all commercial property sales during the previous fiscal year. At the close of the fiscal year on June 30th, the Housing and Revitalization Department shall calculate 40 percent of the actual land sales of the prior year and provide such information to the City Council by August 1st.
(d) Unless specifically stated otherwise in the budget closing resolution, funds not expended within such appropriation during a given fiscal year shall remain in such appropriation and carry forward into the subsequent fiscal year to fund future affordable residential housing projects and other eligible activities.
(e) Subject to approval of the City Council, the City may also accept and deposit into the Fund or subaccounts of the Fund donations and grants from private or public sources, subject to conditions of such grants, for use in accordance with the purpose of the Fund.
(f) Subject to approval of the City Council, the City may also accept and deposit into the Fund or subaccounts of the Fund negotiated settlement agreements as to penalties for use in accordance with the purpose of the Fund. The Housing and Revitalization Department shall negotiate the proposed settlements.
(g) Agreements or contracts for the expenditures from the Fund shall be authorized by the City Council.
(h) In addition to the affordability administrative procedures promulgated under Section 22-3-9 of this Code, the Director of the Housing and Revitalization Department shall promulgate and publish on the City's website administrative procedures requiring Fund moneys to be used to support housing opportunities for Detroit residents with incomes up to 50 percent of the Area Median Income for activities consistent with this article.
(1) To the extent possible, not less than 70 percent of Fund moneys shall be allocated to directly benefit households earning up to 30 percent of the Area Median Income; the remaining 30 percent of moneys may be used to benefit households earning up to 50 percent of the Area Median Income. Fund moneys shall not be used to benefit households earning more than 50 percent of the Area Median Income.
(2) Not less than 70 percent of Fund moneys shall be allocated in areas of persistent poverty, as identified by the U.S. Census Bureau, and/or are located within Multi-Family Target Areas that are identified by the Housing and Revitalization Department.
(3) Eligible activities include, but are not limited to, enforcement of this article, creation and preservation of affordable housing units, compliance with standards for accessible design and other activities under the Americans with Disabilities Act, 42 USC 1201 et seq., or similar state laws, administration and disbursement of funds for homelessness prevention, neighborhood revitalization, activities of a non-profit corporation that develops and stewards affordable housing, and any other activities consistent with this article and applicable law.
(4) The Housing and Revitalization Department shall provide the City Council, the Planning and Development Department, and the Law Department with reasonable opportunity to review and comment on the proposed administrative procedures prior to promulgation under Section 22-3-9 of this Code.
(5) City Council may select individuals with expertise in the creation and/or sustainability of affordable housing, or individuals directly affected by or who reside in subsidized housing, to serve in an advisory capacity to City Council as part of its due diligence in considering recommendations from the Housing and Revitalization Department. These individuals may include representatives from a disability rights organization, fair housing experts, developers of extremely low-income housing, an organization representing people experiencing homelessness, and/or affordable housing policy experts.