A bill to amend 2000 PA 146, entitled “Obsolete property rehabilitation act,” by amending sections 2 and 3 (MCL 125.2782 and 125.2783), section 2 as amended by 2006 PA 70.
House Bill No. 5886 proposes amendments to the "Obsolete Property Rehabilitation Act" (2000 PA 146) by revising sections 2 and 3 (MCL 125.2782 and 125.2783). The bill aims to redefine key terms and expand the scope of properties eligible for rehabilitation incentives. Specifically, it broadens the definitions of "commercial housing property" and "commercial property" to include buildings previously used for industrial purposes that will be converted for residential or commercial use. The bill also clarifies the meaning of "rehabilitation" to encompass significant renovations that restore properties to economically efficient conditions, excluding minor improvements below 10% of the property's true cash value. The legislation introduces the concept of "obsolete property rehabilitation districts," which local governments can establish through a resolution. These districts must consist of properties classified as obsolete, either due to their condition or previous use. The bill mandates that local legislative bodies notify property owners and hold public hearings before establishing such districts. Additionally, new districts must be adjacent to existing development, utilize existing infrastructure, and have access to municipal water and sewer services, promoting compact development. The bill does not specify new funding allocations but implies that rehabilitated properties within these districts may benefit from tax exemptions under the "obsolete properties tax."
Introduced
by
Referred to the Committee on Economic Development and Small Business
