Bill Text: MI SB0262 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Economic development; neighborhood enterprise zones; true cash value; increase, and modify time between notice and decision making. Amends secs. 2 & 3 of 1992 PA 147 (MCL 207.772 & 207.773).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-02-18 - Referred To Committee On Commerce And Tourism [SB0262 Detail]
Download: Michigan-2009-SB0262-Introduced.html
SENATE BILL No. 262
February 18, 2009, Introduced by Senator ALLEN and referred to the Committee on Commerce and Tourism.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending sections 2 and 3 (MCL 207.772 and 207.773), section 2
as amended by 2008 PA 284 and section 3 as amended by 2008 PA 204.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(b) "Condominium unit" means that portion of a structure
intended for separate ownership, intended for residential use, and
established pursuant to the condominium act, 1978 PA 59, MCL
559.101 to 559.276. Condominium units within a qualified historic
building may be held under common ownership.
(c) "Developer" means a person who is the owner of a new
facility at the time of construction or of a rehabilitated facility
at the time of rehabilitation for which a neighborhood enterprise
zone certificate is applied for or issued.
(d) "Facility" means a homestead facility, a new facility, or
a rehabilitated facility.
(e) "Homestead facility" means an existing structure,
purchased by or transferred to an owner after December 31, 1996,
that has as its primary purpose residential housing consisting of 1
or 2 units, 1 of which is occupied by an owner as his or her
principal residence and that is located within a subdivision
platted pursuant to state law before January 1, 1968 other than an
existing structure for which a certificate will or has been issued
after December 31, 2006 in a city with a population of 750,000 or
more, is located within a subdivision platted pursuant to state law
before January 1, 1968.
(f) "Local governmental unit" means a qualified local
governmental unit as that term is defined under section 2 of the
obsolete property rehabilitation act, 2000 PA 146, MCL 125.2782, or
a county seat.
(g) "New facility" means 1 or both of the following:
(i) A new structure or a portion of a new structure that has as
its primary purpose residential housing consisting of 1 or 2 units,
1 of which is or will be occupied by an owner as his or her
principal residence. New facility includes a model home or a model
condominium unit. New facility includes a new individual
condominium unit, in a structure with 1 or more condominium units,
that has as its primary purpose residential housing and that is or
will be occupied by an owner as his or her principal residence.
Except as provided in subparagraph (ii), new facility does not
include apartments.
(ii) A new structure or a portion of a new structure that meets
all of the following:
(A) Is rented or leased or is available for rent or lease.
(B) Is a mixed use building or located in a mixed use building
that contains retail business space on the street level floor.
(C) Is located in a qualified downtown revitalization
district.
(h) "Neighborhood enterprise zone certificate" or
"certificate" means a certificate issued pursuant to sections 4, 5,
and 6.
(i) "Owner" means the record title holder of, or the vendee of
the original land contract pertaining to, a new facility, a
homestead facility, or a rehabilitated facility for which a
neighborhood enterprise zone certificate is applied for or issued.
(j) "Qualified assessing authority" means 1 of the following:
(i) For a facility other than a homestead facility, the
commission.
(ii) For a homestead facility, the assessor of the local
governmental unit in which the homestead facility is located.
(k) "Qualified downtown revitalization district" means an area
located within 1 or more of the following:
(i) The boundaries of a downtown district as defined in section
1 of 1975 PA 197, MCL 125.1651.
(ii) The boundaries of a principal shopping district or a
business improvement district as defined in section 1 of 1961 PA
120, MCL 125.981.
(iii) The boundaries of the local governmental unit in an area
that is zoned and primarily used for business as determined by the
local governmental unit.
(l) "Qualified historic building" means a property within a
neighborhood enterprise zone that has been designated a historic
resource as defined under section 266 of the income tax act of
1967, 1967 PA 281, MCL 206.266.
(m) "Rehabilitated facility" means an existing structure or a
portion of an existing structure with a current true cash value of
$80,000.00
$95,000.00 or less per unit that has or will have as its
primary purpose residential housing, consisting of 1 to 8 units,
the owner of which proposes improvements that if done by a licensed
contractor would cost in excess of $5,000.00 per owner-occupied
unit or 50% of the true cash value, whichever is less, or $7,500.00
per nonowner-occupied unit or 50% of the true cash value, whichever
is less, or the owner proposes improvements that would be done by
the owner and not a licensed contractor and the cost of the
materials would be in excess of $3,000.00 per owner-occupied unit
or $4,500.00 per nonowner-occupied unit and will bring the
structure into conformance with minimum local building code
standards for occupancy or improve the livability of the units
while meeting minimum local building code standards. Rehabilitated
facility also includes an individual condominium unit, in a
structure with 1 or more condominium units that has as its primary
purpose residential housing, the owner of which proposes the above
described improvements. Rehabilitated facility also includes
existing or proposed condominium units in a qualified historic
building with 1 or more existing or proposed condominium units.
Rehabilitated facility does not include a facility rehabilitated
with the proceeds of an insurance policy for property or casualty
loss. A qualified historic building may contain multiple
rehabilitated facilities.
Sec. 3. (1) The governing body of a local governmental unit by
resolution may designate 1 or more neighborhood enterprise zones
within that local governmental unit. Except as otherwise provided
in this subsection, a neighborhood enterprise zone shall contain
not less than 10 platted parcels of land. A neighborhood enterprise
zone located in a qualified downtown revitalization district may
contain less than 10 platted parcels if the platted parcels
together contain 10 or more facilities. All the land within a
neighborhood enterprise zone shall also be compact and contiguous.
Contiguity is not broken by a road, right-of-way, or property
purchased or taken under condemnation if the purchased or condemned
property was a single parcel prior to the sale or condemnation.
(2) The total acreage of the neighborhood enterprise zones
containing only new facilities or rehabilitated facilities or any
combination of new facilities or rehabilitated facilities
designated under this act shall not exceed 15% of the total acreage
contained within the boundaries of the local governmental unit. The
total acreage of the neighborhood enterprise zones containing only
homestead facilities designated under this act shall not exceed 10%
of the total acreage contained within the boundaries of the local
governmental unit or, with the approval of the board of
commissioners of the county in which the neighborhood enterprise
zone is located if the county does not have an elected or appointed
county executive or with the approval of the board of commissioners
and the county executive of the county in which the neighborhood
enterprise zone is located if the county has an elected or
appointed county executive, 15% of the total acreage contained
within the boundaries of the local governmental unit.
(3) Not less than 60 days before the passage of a resolution
designating a neighborhood enterprise zone or the repeal or
amendment of a resolution under subsection (5), the clerk of the
local governmental unit shall give written notice to the assessor
and to the governing body of each taxing unit that levies ad
valorem property taxes in the proposed neighborhood enterprise
zone. Before acting upon the resolution, the governing body of the
local governmental unit shall make a finding that a proposed
neighborhood enterprise zone is consistent with the master plan of
the local governmental unit and the neighborhood preservation and
economic development goals of the local governmental unit. The
governing body before acting upon the resolution shall also adopt a
statement of the local governmental unit's goals, objectives, and
policies relative to the maintenance, preservation, improvement,
and development of housing for all persons regardless of income
level living within the proposed neighborhood enterprise zone.
Additionally, before acting upon the resolution, the governing body
of a local governmental unit with a population greater than 20,000
shall pass a housing inspection ordinance. A local governmental
unit with a population of 20,000 or less may pass a housing
inspection ordinance. Before the sale of a unit in a new or
rehabilitated facility for which a neighborhood enterprise zone
certificate is in effect, an inspection shall be made of the unit
to determine compliance with any local construction or safety codes
and that a sale may not be finalized until there is compliance with
those local construction or safety codes. The governing body shall
hold
a public hearing not later than 45 60 days after the date the
notice is sent but before acting upon the resolution.
(4) Upon receipt of a notice under subsection (3), the
assessor shall determine and furnish to the governing body of the
local governmental unit the amount of the true cash value of the
property located within the proposed neighborhood enterprise zone
and any other information considered necessary by the governing
body.
(5) A resolution designating a neighborhood enterprise zone,
other than a zone designated under subsection (2), may be repealed
or amended not sooner than 3 years after the date of adoption or of
the most recent amendment of the resolution by the governing body
of the local governmental unit. The repeal or amendment of the
resolution shall take effect 6 months after adoption. However, an
action taken under this subsection does not invalidate a
certificate that is issued or in effect and a facility for which a
certificate is issued or in effect shall continue to be included in
the total acreage limitations under this section until the
certificate is expired or revoked.
(6) A resolution designating a neighborhood enterprise zone in
an obsolete property rehabilitation district that was created by a
local unit of government on June 6, 2003, and for which the state
tax commission issued obsolete property rehabilitation certificates
on August 26, 2003, and September 24, 2003 will cause any previous
certificate to expire on the December 30 immediately preceding the
December 31 on which the first neighborhood enterprise zone
certificate is effective. The taxable value of the parcel shall be
calculated using the value of the parcel before the building permit
was issued. This subdivision authorizes an amended obsolete
property rehabilitation certificate approved by the state tax
commission for the portion of the parcel contained in the original
certificate for which an application for a neighborhood enterprise
zone certificate was not submitted.
