Michigan bill sets rules for mass timber loans and assistance

The fund would offer loans for mass timber building projects and for manufacturing or supply chain work. Eligible applicants include developers and project owners, nonprofit housing organizations, tribal governments, colleges, municipalities, construction firms, and mass timber makers or fabricators. The program would use money transferred from the revolving loan fund or appropriated for loans. For construction projects, the loan could not exceed the lower of 15% of documented hard construction costs or $15 million. The fund must review stated criteria before approval and may prefer projects that provide affordable housing, renew downtown or brownfield sites, or support rural development. Loans would run from 3 to 15 years. At an applicant’s request, the fund would provide up to 24 months before repayment begins.

The fund would provide technical help to eligible applicants unfamiliar with mass timber. Eligible applicants are the groups listed for the loan program, including developers, nonprofits, tribal governments, colleges, municipalities, construction firms, and mass timber businesses. The program would use money transferred from the revolving loan fund or appropriated for assistance. Help may include feasibility reviews, design guidance, supplier connections, carbon accounting tools, and construction training. The fund may partner with colleges, industry groups, design firms, and state forestry agencies.

The fund would report yearly on its mass timber program activities. The reporting covers the fund’s activities under the mass timber loan and technical assistance programs. The report would include loan counts, money lent, private investment connected to loans, requests for technical help and the types requested, and jobs created through the programs. The information would appear in the annual report required under section 9.