June 9, 2010, Introduced by Reps. Clemente and Griffin and referred to the Committee on New Economy and Quality of Life.
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,
and by adding section 18.
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.
Sec. 18. (1) A record or portion of a record, material,
information, or other data received, prepared, used, or retained by
the authority in connection with an application to the authority
for financial assistance for a housing project or related housing
or social, recreational, commercial, and communal facilities
necessary to serve and improve a residential area in which
authority-aided or federally-aided housing is located or is planned
to be located, that relates to trade secrets, commercial,
financial, or proprietary information submitted by the applicant,
and which is requested in writing by the applicant and acknowledged
in writing by the executive director of the authority to be
confidential, is not subject to the freedom of information act,
1976 PA 442, MCL 15.231 to 15.246.
(2) A record or portion of a record, material, information, or
other data received, prepared, used, or retained by the authority
in connection with trade secrets, commercial, financial, or
proprietary information requested by the authority and submitted by
a private organization for the purpose of developing public policy,
which is requested in writing by the submitter and acknowledged in
writing by the authority executive director to be confidential, is
not subject to the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
(3) As used in this section, "trade secrets, commercial,
financial, or proprietary information" means information that has
not been publicly disseminated or that is unavailable from other
sources, the release of which might cause the applicant significant
competitive harm.