Bill Text: MI HB4897 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Property; condemnation; compensation for the taking of a principal residence under eminent domain; revise property tax pop-up component. Amends sec. 5 of 1980 PA 87 (MCL 213.55).

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Introduced - Dead) 2015-09-24 - Printed Bill Filed 09/23/2015 [HB4897 Detail]

Download: Michigan-2015-HB4897-Introduced.html

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HOUSE BILL No. 4897

September 22, 2015, Introduced by Reps. Geiss, Pettalia, Dianda, Santana, Chang and Sarah Roberts and referred to the Committee on Tax Policy.

 

     A bill to amend 1980 PA 87, entitled

 

"The uniform condemnation procedures act,"

 

by amending section 5 (MCL 213.55), as amended by 2006 PA 439.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5. (1) Before initiating negotiations for the purchase of

 

property, the an agency shall establish an amount that it believes

 

to be just compensation for the property and promptly shall submit

 

to the owner a good faith written offer to acquire the property for

 

the full amount so established. At the same time, if the taking of

 

the property might require relocation, the agency shall provide

 

written notice to the occupants of the property stating that an

 

eminent domain proceeding has commenced and outlining the

 

occupants' basic legal rights in the process, including, but not

 

limited to, the fact that any person who has a leasehold interest

 

of less than 6 months is entitled to a $3,500.00 moving allowance

 

as provided under section 2 of 1965 PA 40, MCL 213.352, and that an

 

individual who is a residential occupant may not be displaced until

 

moving expenses or a moving allowance is paid as provided under

 

1965 PA 40, MCL 213.351 to 213.355, and the person has had a

 

reasonable opportunity, not to exceed 180 days after the payment

 

date of moving expenses or the moving allowance as provided under

 

1965 PA 40, MCL 213.351 to 213.355, to relocate to a comparable

 

replacement dwelling. If there is more than 1 owner of a parcel of

 

the property, the agency may make a single, unitary good faith

 

written offer. The good faith offer shall must state whether the

 

agency reserves or waives its rights to bring federal or state cost

 

recovery actions against the present owner of the property arising

 

out of a release of hazardous substances at the property, and the

 

agency's appraisal of just compensation for the property shall must

 

reflect such the reservation or waiver. The amount shall must not

 

be less than the agency's appraisal of just compensation for the

 

property. If the owner fails to provide documents or information as

 

required by subsection (2), the agency may base its good faith

 

written offer on the information otherwise known to the agency

 

regardless of whether or not the agency has sought a court order

 

under subsection (2). The agency shall provide the owner of the

 

property and the owner's attorney with an opportunity to review the

 

written appraisal, if an appraisal has been prepared, or, if an

 

appraisal has not been prepared, the agency shall provide the owner

 

or the owner's attorney with a written statement and summary,

 

showing the basis for the amount the agency established as just

 

compensation for the property. If an the agency is unable to agree

 

with the owner for the purchase of the property, after making a

 

good faith written offer to purchase the property, the agency may

 

file a complaint for the acquisition of the property in the circuit

 

court in the county in which the property is located. If a parcel

 

of the property is situated located in 2 or more counties and an

 

owner resides in 1 of the counties, the complaint shall must be

 

filed in the county in which the owner is a resident. If a parcel

 

of the property is situated located in 2 or more counties and an

 

owner does not reside in 1 of the counties, the complaint may be

 

filed in any of the counties in which the property is situated.

 

located. The complaint shall ask must request that the court

 

ascertain and determine just compensation to be made for the

 

acquisition of the described property. As used in this subsection,

 

"comparable replacement dwelling" means any dwelling that is all of

 

the following:

 

     (a) Decent, safe, and sanitary.

 

     (b) Adequate in size to accommodate the occupants.

 

     (c) Within the financial means of the individual.

 

     (d) Functionally equivalent.

 

     (e) In an area not subject to unreasonable adverse

 

environmental conditions.

 

     (f) In a location generally not less desirable than the

 

location of the individual's dwelling with respect to public

 

utilities, facilities, services, and the individual's place of

 

employment.

 

     (2) During the period in which the an agency is establishing

 

just compensation for the an owner's parcel, the agency has the

 

right to may secure tax returns, financial statements, and other

 

relevant financial information for a period not to exceed 5 years

 

before the agency's request. The owner shall produce the

 

information within 21 business days after receipt of a written

 

request from the agency. The agency shall reimburse the owner for

 

actual, reasonable costs incurred in reproducing any requested

 

documents, plus other actual, reasonable costs of not more than

 

$1,000.00 incurred to produce the requested information. Within 45

 

days after production of the requested documents and other

 

information, the owner shall provide to the agency a detailed

 

invoice for the costs of reproduction and other costs sought. The

 

owner is not entitled to a reimbursement of costs under this

 

subsection if the reimbursement would be duplicative of any other

 

reimbursement to the owner. If the owner fails to provide all

 

documents and other information requested by the agency under this

 

section, subsection, the agency may file a complaint and proposed

 

order to show cause in the circuit court in the county specified in

 

subsection (1). The court shall immediately hold a hearing on the

 

agency's proposed order to show cause. The court shall order the

 

owner to provide documents and other information requested by the

 

agency that the court finds to be relevant to a determination of

 

just compensation. An agency shall keep documents and other

 

information that an owner provides to the agency under this section

 

subsection confidential. However, the agency and its experts and

 

representatives may utilize the documents and other information to

 

determine just compensation, may utilize the documents and other

 

information in legal proceedings under this act, and may utilize

 

the documents and other information as provided by court order. If

 

the owner unreasonably fails to timely produce the documents and

 

other information, the owner shall be is responsible for all

 

expenses incurred by the agency in obtaining the documents and

 

other information. This section does not affect any right a party

 

may otherwise have to discovery or to require the production of

 

documents and other information upon commencement of an action

 

under this act. A The agency shall provide a copy of this section

 

shall be provided to the owner with the agency's request.

 

     (3) In determining just compensation, all of the following

 

apply:

 

     (a) If an owner claims that the agency is taking property

 

other than the property described in the good faith written offer

 

or claims a right to compensation for damage caused by the taking,

 

apart from the value of the property taken, and not described in

 

the good faith written offer, the owner shall file a written claim

 

with the agency stating the nature and substance of that property

 

or damage. The owner's written claim shall must provide sufficient

 

information and detail to enable the agency to evaluate the

 

validity of the claim and to determine its value. The owner shall

 

file the claim within 90 days after the good faith written offer is

 

made pursuant to section 5(1) subsection (1) or 180 days after the

 

complaint is served, whichever is later, unless a later date is set

 

by the court for reasonable cause. If the appraisal or written

 

estimate of value is provided within the established period for

 

filing written claims, the owner's appraisal or written estimate of

 

value may serve as the written claim under this act. If the owner

 

fails to timely file the written claim under this subsection, the

 

claim is barred.

 

     (b) The parties shall exchange the agency's updated appraisal

 

reports, if any, and the owner's appraisal report within 90 days

 

after the expiration of the period for filing written claims,

 

unless a later date is set by the court in accordance with section

 

11(1) for reasonable cause. If the agency believes that the

 

information provided by the owner is not sufficient to allow the

 

evaluation of the claim, the agency may request additional

 

information from the owner and, if that information is not

 

provided, may ask the court to compel the owner to provide

 

additional information to enable the agency to evaluate the

 

validity of the claim and to determine its value. If the owner

 

fails to provide sufficient information after being ordered to do

 

so by the court, the court may assess an appropriate sanction in

 

accordance with the Michigan court rules for failing to comply with

 

discovery orders, including, but not limited to, barring the claim.

 

In addition, the court also shall consider any failure to provide

 

timely information when it determines the maximum reimbursable

 

attorney fees under section 16.

 

     (c) For any claim that has not fully accrued or is continuing

 

in nature when the claim is filed, the owner shall provide

 

information then reasonably available that would enable the agency

 

to evaluate the claim, subject to the owner's continuing duty to

 

supplement that information as it becomes available. The owner

 

shall provide all supplementary information at least 90 days before

 

trial, and the court shall afford the agency a reasonable

 

opportunity for discovery once all supplementary information is

 

provided and allow that discovery to proceed until 30 days before

 

trial. For reasonable cause, the court may extend the time for the

 

owner to provide information to the agency and for the agency to

 

complete discovery. If the owner fails to provide supplementary

 

information as required under this subdivision, the court may

 

assess an appropriate sanction in accordance with the Michigan

 

court rules for failing to comply with discovery orders, including,

 

but not limited to, barring the claim. In addition, the court also

 

shall consider any failure to provide timely supplemental

 

information when it determines the maximum reimbursable attorney

 

fees under section 16.

 

     (d) After receiving a written claim from an owner, the agency

 

may provide written notice that it contests the compensability of

 

the claim, establish an amount that it believes to be just

 

compensation for the claim, or reject the claim. If the agency

 

establishes an amount it believes to be just compensation for the

 

claim, the agency shall submit a good faith written offer for the

 

claim. The sum of the good faith written offer for all claims

 

submitted under this subsection or otherwise disclosed in discovery

 

for all items of property or damage plus the original good faith

 

written offer constitutes the good faith written offer for purposes

 

of determining the maximum reimbursable attorney fees under section

 

16.

 

     (e) If the owner files a claim that is frivolous or in bad

 

faith, the agency is entitled to recover from the owner its actual

 

and reasonable expenses incurred to evaluate the validity and to

 

determine the value of the claim.

 

     (f) A residential tenant's leasehold interest of less than 6

 

months in the property is not a compensable claim under this act.

 

     (4) In addition to other allegations required or permitted by

 

law, the complaint shall must contain or have annexed to it all of

 

the following:

 

     (a) A plan showing the property to be taken.

 

     (b) A statement of purpose for which the property is being

 

acquired, and a request for other relief to which the agency is

 

entitled by law.

 

     (c) The name of each known owner of the property being taken.

 

     (d) A statement setting forth the time within which motions

 

for review under section 6 shall must be filed; the amount that

 

will be awarded and the persons to whom the amount will be paid in

 

the event of a default; and the deposit and escrow arrangements

 

made under subsection (5).

 

     (e) A declaration signed by an authorized official of the

 

agency declaring that the property is being taken by the agency.

 

The declaration shall must be recorded with the register of deeds

 

of each county within which the property is situated. located. The

 

declaration shall include all of the following:

 

     (i) A description of the property to be acquired sufficient for

 

its identification and the name of each known owner.

 

     (ii) A statement of the estate or interest in the property

 

being taken. Fluid mineral and gas rights and rights of access to

 

and over the a highway are excluded from the rights acquired unless

 

the rights are specifically included.

 

     (iii) A statement of the sum of money estimated by the agency to

 

be just compensation for each parcel of property being acquired.

 

     (iv) Whether the agency reserves or waives its rights to bring

 

federal or state cost recovery actions against the present owner of

 

the property.

 

     (5) When the complaint is filed, the agency shall deposit the

 

amount estimated to be just compensation with a bank, trust

 

company, or title company in the business of handling real estate

 

escrows, or with the state treasurer, municipal treasurer, or

 

county treasurer. The deposit shall must be set aside and held for

 

the benefit of the owners, to be disbursed upon order of the court

 

under section 8.

 

     (6) If the property being taken is a principal residence for

 

which an exemption from certain local taxation is granted under

 

section 7cc of the general property tax act, 1893 PA 206, MCL

 

211.7cc, the agency is obligated to shall pay an additional amount

 

to the owner or owners , which shall be deposited along and deposit

 

that amount with the amount estimated to be just compensation as

 

provided in subsection (5). The agency shall determine the

 

additional amount shall be determined by subtracting the taxable

 

value of the property from the state equalized value of the

 

property, multiplying that amount by the total applicable property

 

tax millage rate, applicable to the property taken, and multiplying

 

that result by the number of years the owner or owners have owned

 

the principal residence, but not more than 5 years. the following

 

number of years:

 

     (a) Five years, unless subdivision (b) applies.

 

     (b) Ten years, if, within 180 days after title to the property

 

being taken vests in the agency, the owner or owners purchase a

 

replacement dwelling to be used as their principal residence that

 

is located in the same city, village, or township as the property

 

being taken.

 

     (7) As used in this section, "taxable value" means that value

 

determined under section 27a of the general property tax act, 1893

 

PA 206, MCL 211.27a.