Bill Text: MI HB6245 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Housing; housing development authority; disclosure of certain information by MSHDA; prohibit. Amends sec. 15a of 1966 PA 346 (MCL 125.1415a) & adds sec. 18.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-12-03 - Referred To Committee Of The Whole [HB6245 Detail]

Download: Michigan-2009-HB6245-Engrossed.html

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HB-6245, As Passed House, August 24, 2010

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 6245

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1966 PA 346, entitled

 

"State housing development authority act of 1966,"

 

by amending section 15a (MCL 125.1415a), as amended by 1994 PA 363.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 15a. (1) If a housing project owned by a nonprofit

 

housing corporation, consumer housing cooperative, limited dividend

 

housing corporation, mobile home park corporation, or mobile home

 

park association is financed with a federally-aided or authority-

 

aided mortgage or advance or grant from the authority, then, except

 

as provided in this section, the housing project is exempt from all

 

ad valorem property taxes imposed by this state or by any political

 

subdivision, public body, or taxing district in which the project

 

is located and, with the consent of the land bank fast track

 

authority that sold or otherwise conveyed the property under the

 

land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774, from

 

any eligible tax reverted property specific tax imposed under the

 

tax reverted clean title act, 2003 PA 260, MCL 211.1021 to

 

211.1026. The owner of a housing project eligible for the exemption

 

shall file with the local assessing officer a notification of the

 

exemption, which shall be in an affidavit form as provided by the

 

authority. The completed affidavit form first shall be submitted to

 

the authority for certification by the authority that the project

 

is eligible for the exemption. The owner then shall file the

 

certified notification of the exemption with the local assessing

 

officer before November 1 of the year preceding the tax year in

 

which the exemption is to begin.

 

     (2) The owner of a housing project exempt from taxation under

 

this section shall pay to the municipality in which the project is

 

located an annual service charge for public services in lieu of all

 

taxes. Subject to subsection (6), the amount to be paid as a

 

service charge in lieu of taxes shall be for new construction

 

projects the greater of, and for rehabilitation projects the lesser

 

of, the tax on the property on which the project is located for the

 

tax year before the date when construction or rehabilitation of the

 

project was commenced or 10% of the annual shelter rents obtained

 

from the project. A municipality, by ordinance, may establish or

 

change, by any amount it chooses, the service charge to be paid in

 

lieu of taxes by all or any class of housing projects exempt from

 

taxation under this act. However, the service charge shall not

 

exceed the taxes that would be paid but for this act.

 

     (3) The exemption from taxation granted by this section shall

 

remain in effect for as long as the federally-aided or authority-

 

aided mortgage or advance or grant from the authority is

 

outstanding, but not more than 50 years. The municipality may

 

establish by ordinance a different period of time for the exemption

 

to remain in effect.

 

     (4) Except as otherwise provided in this subsection, any

 

payments for public services received by a municipality in lieu of

 

taxes under this section shall be distributed by the municipality

 

to the several units levying the general property tax in the same

 

proportion as prevailed with the general property tax in the

 

previous calendar year. For payments in lieu of taxes collected

 

after June 30, 1994, the distribution to the several units shall be

 

made as if the number of mills levied for local school district

 

operating purposes were equal to the number of mills levied for

 

those purposes in 1993 minus the number of mills levied under the

 

state education tax act, Act No. 331 of the Public Acts of 1993,

 

being sections 211.901 to 211.906 of the Michigan Compiled Laws

 

1993 PA 331, MCL 211.901 to 211.906, for the year for which the

 

distribution is calculated. For tax years after 1993, the amount of

 

payments in lieu of taxes to be distributed to a local school

 

district for operating purposes under this subsection shall not be

 

distributed to the local school district but instead shall be paid

 

to the state treasury and credited to the state school aid fund

 

established by section 11 of article IX of the state constitution

 

of 1963.

 

     (5) Notwithstanding subsection (1), a municipality may provide

 

by ordinance that the tax exemption established in subsection (1)

 

shall not apply to all or any class of housing projects within its

 

boundaries to which subsection (1) applies. If the municipality

 

makes that provision, the tax exemption established in subsection

 

(1) shall not apply to the class of housing projects designated in

 

the ordinance. If the ordinance so provides, the ordinance shall be

 

effective with respect to housing projects for which an exemption

 

has already been granted on December 31 of the year in which the

 

ordinance is adopted, but not before. A municipality that has

 

adopted an ordinance described in this subsection may repeal that

 

ordinance, and the repeal shall become effective on the date

 

designated in the repealing ordinance.

 

     (6) Notwithstanding subsection (2), the service charge to be

 

paid each year in lieu of taxes for that part of a housing project

 

that is tax exempt under subsection (1) and that is occupied by

 

other than low income persons or families shall be equal to the

 

full amount of the taxes that would be paid on that portion of the

 

project if the project were not tax exempt. The benefits of any tax

 

exemption granted under this section shall be allocated by the

 

owner of the housing project exclusively to low income persons or

 

families in the form of reduced housing charges.

 

     (7) For purposes of this section only, "low income persons and

 

families" means, with respect to any housing project that is tax

 

exempt, persons and families eligible to move into that project.

 

For purposes of this subsection, the authority may promulgate rules

 

to redefine low income persons or families for each municipality on

 

the basis of conditions existing in that municipality.

 

     (8) This state shall not reimburse any unit of government for

 

a tax exemption granted to any housing project under this section.