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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5694 April 25, 1980 STATE HOUSING DEVELOPMENT AUTHORITY: Eligibility for home improvement loan HOUSING: Home improvement loans made by State Housing Development Authority Where two or more persons live not contrary to law in the same residential structure and each has an ownership interest in the residential structure to be improved with the proceeds from a home improvement loan, the income of each of such persons must be included in the computation of gross family income to determine eligibility for a home improvement loan. Honorable David C. Hollister State Representative The Capitol Lansing, Michigan You have requested my opinion on the following question: If a financially self-supporting person who is neither handicapped nor 62 or more years of age applies for a home improvement loan pursuant to 1977 PA 130, can the Michigan State Housing Development Authority prohibit that person from receiving the loan on the basis that the presence of other adult occupants of the same dwelling unit creates a family that would not be eligible for the loan? 1966 PA 346, Sec. 44a, as added by 1977 PA 130; MCLA 124.1444a; MSA 16.114(44a), empowers the Michigan State Housing Development Authority, hereafter Authority, to make certain home improvement loans. In pertinent part, 1966 PA 346, Sec. 44a(1), supra, provides: 'The authority may make loans, grants, or deferred payment loans to persons and families of low and moderate income to finance the rehabilitation of residential real property designed for occupancy by not more than 4 families which is owned or is being purchased by 1 or more persons or families of low and moderate income which is for occupancy by persons or families of low and moderate income.' It should be noted that the power of the Authority to make home improvement loans is permissive, not mandatory. These loans may be made to persons or families of low or moderate income. The proceeds of the loan must be used for the rehabilitation of residential real property which is owned or being purchased by one or more persons or families of low or moderate income which property is designed for occupancy by persons or families of low or moderate income. In order to implement the home improvement loan program, the Authority has adopted administrative rule, 1979 AACS 125.102, which, in pertintent part, provides: '(3) 'Dwelling unit' means living accommodations within a housing project intended for occupancy by a single family. '(5) 'Family' means any 1 of the following: ' (c) Two or more persons living together not contrary to law. ' (7) 'Gross income' means all income derived from whatever source. In computing gross income, all the income of the members of the family living in the same dwelling unit and contributing to the expenses of the family is to be considered. . . .' Consideration must also be given to 1979 AACS R 125.181, which, in pertinent part, provides: 'An application for a home improvement loan shall satisfy the following requirements: '(a) An applicant shall be an individual fee owner or purchaser under a land contract of the residential structure to be improved or an individual member-shareholder in a non-profit cooperative housing corporation which member-shareholder has a proprietary interest in a residential structure. The residential structure may be subject to a mortgage or other lien securing a debt. However, occupancy of the residential structure by the applicant shall not be required, except in the case of an individual member-shareholder in a non-profit cooperative housing corporation. '(b) An applicant shall be a family which shall not have an adjusted annual income greater than $13,999.00. (g) All families occupying dwelling units shall have an adjusted annual income not greater than $13,999.00.' If two or more persons living not contrary to law meet the requirements of R 125.181, supra, in that each has an ownership interest in the residential structure to be improved, the income of both such persons must be included in the computation of gross family income to determine eligibility for a home improvement loan. It is, therefore, my opinion that the authority may include the income from two or more persons living together not contrary to law in a dwelling unit where each has an ownership interest in the residential structure to be improved in computing the gross family income of an applicant for a home improvement loan. Frank J. Kelley Attorney General
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