[Adopted as Ch. 25 of the 1978 General Ordinances; amended in its entirety 5-6-2019]
Pursuant to Act 18 of the Public Acts of 1933, as amended, there is hereby established a Housing Commission, hereinafter called the Lapeer Housing Commission (sometimes referred to hereafter as "LHC"), with authority to purchase, acquire, construct, maintain, operate, improve, extend and repair housing facilities within the City of Lapeer and to eliminate housing conditions which are detrimental to the public peace, health, safety, morals or welfare of the said City.
A. 
The Commission shall consist of five members who shall be appointed by the Mayor of the City of Lapeer. The term of office of the members of the first Commission appointed hereunder shall be appointed for terms of one year for one member, two years for one member, three years for one member, four years for one member, and five years for one member. The term of office of members of the Commission shall be five years.
B. 
One member of the Commission shall be a tenant of public or subsidized housing.
C. 
Members of the Commission shall serve without compensation and may be removed from office by the Mayor. Any vacancy in office shall be filled by appointment by the Mayor for the remainder of the unexpired term.
The Commission shall be a public body corporate. Except as otherwise provided in Public Act 18,[1] the Commission may do all of the following:
A. 
Sue and be sued in any court of this state.
B. 
Form or incorporate nonprofit corporations under the laws of this state for any purpose not inconsistent with the purposes for which the Commission was formed.
C. 
Serve as a shareholder or member of a qualified nonprofit corporation organized under the laws of this state.
D. 
Authorize, approve, execute, and file with the Michigan Department of Commerce those documents that are appropriate to form and continue one or more nonprofit corporations.
E. 
Form or incorporate for-profit corporations, partnerships, and companies under the laws of this state for any purpose not inconsistent with the purposes for which the Commission was formed.
[1]
Editor's Note: See MCLA § 125.651 et seq.
The Commission shall meet at regular intervals after public notice of the time and place of such meeting, and all meetings of the Commission shall be open to the public. The Commission shall adopt bylaws and its own rules of procedure not inconsistent with the provisions of Act 18 or of this article, and shall keep a record of its proceedings. Three members of the Commission shall constitute a quorum for the transaction of its business and a Chairman and a Vice Chairman shall be elected by the Commission. The said Commission may employ and fix the compensation of a Director who may also serve as Secretary and such other employees or officers as shall be necessary. The Commission shall prescribe the duties of all its officers and employees and shall transfer to its officers and Director those functions and that authority which the Commission has prescribed. The Commission may employ engineers, architects, attorneys, accountants, and other professional consultants as necessary. The Commission may solicit, accept, and enter into agreements relating to grants from any public or private source, including the state or federal government or any agency of the state or federal government, and may carry out any federal or state program related to the purposes for which the Commission is created.
A. 
The Commission shall have the following enumerated powers and duties per Section 7 of Public Act 18:[1]
(1) 
To determine in what areas of the City of Lapeer it is necessary to provide proper sanitary housing facilities for families of low income and for the elimination of housing conditions which are detrimental to the public peace, health, safety, morals, and/or welfare;
(2) 
To purchase, lease, sell, exchange, transfer, assign and mortgage any property, real or personal, or any interest therein, or acquire the same by gift, bequest or under the power of eminent domain; to own, hold, clear and improve property; to engage in or to contract for the design and construction, reconstruction, alteration, improvement, extension, and/or repair of any housing project or projects or parts thereof; to lease and/or operate any housing project or projects;
(3) 
To control and supervise all parks and playgrounds forming a part of such housing development but may contract with existing departments of the City of Lapeer for operation or maintenance of either or both;
(4) 
To establish and revise rents of any housing project or projects, but shall rent all property for such sums as will make them self-supporting, including all charges for maintenance and operation, for principal and interest on loans and bonds, and for taxes;
(5) 
To rent only to such tenants as are unable to pay for more expensive housing accommodations;
(6) 
To call upon other departments for assistance in the performance of its duties, but said departments shall be reimbursed for any added expense incurred therefor.
[1]
Editor's Note: See MCLA § 125.657.
B. 
It shall have such other powers relating to said housing facilities project as may be prescribed by ordinance or resolution of the City of Lapeer or as may be necessary to carry out the purposes of this article.
No member of the Lapeer Housing Commission or any of its officers, employees, or staff shall have any interest, directly or indirectly, in any contract for property, materials or services to be acquired by the Commission.
The Commission shall make an annual report of its activities to the City of Lapeer and shall make other reports as the City may from time to time require. The Commission shall also report any action of the Commission taken under Section 6 of Public Act 18[1] in a manner sufficient to allow the City of Lapeer Commission to exercise the authority granted under this Act to supervise the activities of the Commission.
[1]
Editor's Note: See MCLA § 125.656.
A. 
All deeds, mortgages, contracts, leases, purchases, or other agreements regarding real property, including agreements to acquire or dispose of real property, shall be approved and executed in the name of the Lapeer Housing Commission. Contracts or leases with tenants or facility managers shall be executed by and in the name of the Lapeer Housing Commission.
B. 
Contracts for the purchase of necessary materials and contracts related to the powers and duties of the Commission under Section 12 of Public Act 18[1] do not need to be approved and executed by the City of Lapeer Commission.
[1]
Editor's Note: See MCLA 125.662.
C. 
The City of Lapeer may transfer property to the Commission for use by the Commission for a purpose authorized by this article. The transfer of property to the Commission, including property taken under the City of Lapeer's power of eminent domain, shall be considered necessary for public purposes and for the benefit of the public.
D. 
The Commission is empowered by the City of Lapeer to act as a borrower. For the execution of agreements regarding real property in the name of the Commission, the Commission may sue and be sued with respect to those agreements executed or obligations issued by the Commission. This does not preclude the City of Lapeer or Lapeer Housing Commission from asserting a defense of governmental immunity to which it may be entitled under law against any claim made against the City of Lapeer or the Lapeer Housing Commission.
A. 
Property, income, and operations of the Commission and property of a qualified entity that is located in the City of Lapeer are exempt from all taxation by the state or any of its political subdivisions. The City of Lapeer will require the Commission to pay an annual service fee in lieu of all taxes with respect to projects or facilities of the Commission or qualified entities. The fee shall not exceed 10% of the annual shelter rent obtained from the projects or facilities.
B. 
For purposes of this section, "qualified entity" means either of the following:
(1) 
A Michigan nonprofit corporation or a Michigan limited partnership having a Michigan nonprofit corporation as its sole general partner, if one of the following applies:
(a) 
The nonprofit corporation is owned by the Commission;
(b) 
A majority of the members of the board of directors of the nonprofit corporation are elected and removable by the Commission;
(c) 
The Commission is the sole member of the nonprofit corporation.
(2) 
A for-profit corporation, partnership, or company formed or incorporated by the Commission for the sole purpose of syndicating low-income housing tax credits in connection with the redevelopment of a housing project that has been owned by the Commission, if the Commission maintains oversight responsibility for the management and operation of the project for which low-income housing tax credits were syndicated and the for-profit entity does not engage in any other business activity unrelated to the housing project.
The Commission shall have complete control of the entire housing project or projects including the construction, maintenance and operation as fully and completely as if said Commission represented private owners. Contracts for construction or purchase of materials entered into by the Commission shall not be required to be made through any City of Lapeer purchasing department.
The notes, bonds, or other obligations or any claims of whatever nature against said housing project or projects shall not be debts or charges against the City of Lapeer or against any members of the Commission, and no individual liability shall attach for any official act done by any member of such Commission.
All references to bonds and the issuance of bonds within Public Act 18[1] apply to Lapeer Housing Commission.
[1]
Editor's Note: See MCLA § 125.651 et seq.
In the operation or management of housing projects a Commission shall at all times observe the following duties with respect to rentals and tenant selection:
A. 
It may rent or lease the dwelling accommodations therein only to persons of low income;
B. 
It may rent or lease the dwelling accommodations therein only at rentals within the financial reach of such persons of low income;
C. 
It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding;
D. 
It shall not accept any person as a tenant in any housing project if the person or persons who would occupy the dwelling accommodations have an aggregate annual net income in excess of any maximum allowed by the federal government pursuant to federal law or regulation in any contract for financial assistance;
E. 
It shall prohibit subletting by tenants.
The Lapeer Housing Commission shall not terminate tenancy or contract right to occupy housing except for just cause. Just cause to terminate a tenancy or contract right to occupy housing includes, but is not limited to, one or more of the following:
A. 
A failure to comply with the obligations of the lease or the lawful rules and regulations of the Housing Commission;
B. 
The use of a unit for any unlawful purpose, including any purpose for which the Commission is entitled to recover possession of the premises by summary proceedings under Section 5714(1)(b) of the Revised Judicature Act of 1961, Act No. 236 of the Public Acts of 1961, being § 600.5714 of the Michigan Compiled Laws;
C. 
The maintenance of any unsafe, unsanitary, or unhealthful condition in any dwelling unit or in any of the common areas.
A. 
To the extent not inconsistent with federal law or regulation, state law, or local ordinance, the Housing Commission shall adopt and promulgate reasonable rules that establish the following:
(1) 
Eligibility requirements for admission to housing;
(2) 
Obligations of tenants, including regulations for the use and occupation of housing units and common areas;
(3) 
Just cause for the termination of the right of use and occupation, so that a tenant may be clearly apprised of the precise reasons for a termination;
(4) 
Conditions for continued occupancy, taking into account factors including, but not limited to, family size, fluctuations in income, availability of standard accommodations elsewhere, and other relevant matters;
(5) 
Operation of homesteading programs under all of the following:
(a) 
The Urban Homesteading in Single-Family Public Housing Act;[1]
[1]
Editor's Note: See MCLA § 125.2761 et seq.
(b) 
The Urban Homesteading in Multifamily Public Housing Act.[2]
[2]
Editor's Note: See MCLA § 125.2721 et seq.
B. 
The Commission may adopt other rules that are necessary for the just and effective administration of local housing projects constructed and operated as provided by this article. All rules to be valid shall be published in a conspicuous place in each housing project operated by the Commission.
This article shall become effective at 12:01 a.m., Tuesday, May 25, 1971, as an emergency ordinance pursuant to Section 7.3 of the Charter of the City of Lapeer, as revised.