Title
Resolution to Adopt a Resolution Exempting Eligible Non-Profit Housing Providers from the Collection of Property Taxes for up to Two Years as Provided under Public Act 612 of 2006 (MCL 211.7kk)
Memorandum
The Michigan Legislature adopted PA 612 of 2006 (MCL 211.7kk) which authorizes the local governing body of the local tax collecting unit to exempt property taxes for non-profit owned property that will be sold or leased to a low-income household. The Clerk of the local taxing unit must give written notice to the tax assessor of that unit and the legislative body of each taxing unit that levies ad valorem property taxes in that unit. Before acting on the resolution, the governing body must give the Assessor and a representative of the affected taxing units an opportunity for a public hearing. A public hearing was held at the City Council meeting on March 17, 2008.
Currently, two local non-profit housing providers meet the eligibility requirements of the Act of constructing or renovating residential housing for conveyance to a low-income person as their mission. Habitat for Humanity of Huron Valley and Homeplace Community Land Trust develop a total of 2-4 units/year in Ann Arbor. The intent of the Act is to enable non-profit housing providers to purchase vacant land or homes in poor condition, and minimize the holding costs (taxes) while the house is built or rehabbed and then sold or leased to a low-income homeowner. By reducing the taxes for up to two years, the non-profit is either able to sell the house at a lower sales price and/or the non-profit is able to reduce the funding request from the City to develop the unit. A low-income person is defined under the Act, as a family income that is not more than 80% of the State Median Income, which was $62,100 in 2007.
The exemption takes effect at the issuance of a building permit and remains in effect for two years, or until the property is occupied by a low-income person under a lease agreement or s...
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