Gov. Gretchen Whitmer recently signed four bills into law that are designed to lessen Michigan’s statewide housing crisis. The new laws will impact municipalities, housing developers, home builders, and residents throughout the state.
What are the new laws?
The new laws, which went into effect, are as follows:
Attainable Housing Facilities Act – (Senate Bill 362) authorizes a new form of a property tax break for residential rehabilitation projects. Under the law, certain eligible property owners can apply for partial property tax exemptions of up to 50 percent if they meet certain affordability criteria.
Neighborhood Enterprise Zone Expansion - (Senate Bill 364) allows all Michigan cities, villages, and townships the authority to grant Neighborhood Enterprise Zone (NEZ) tax breaks to developers who are building or rehabilitating residential housing. In the past, only eligible distressed communities within certain downtown revitalization districts could utilize NEZs.
Residential Facilities Exemption Act – (Senate Bill 422) – authorizes a temporary tax abatement on certain new housing development in districts established by local units of government. The abatement would allow for the expansion and renovation of aging residential units and assist in the building of new units.
PILOTS for Housing (Senate Bill 432) – allows local governments the option to offer a payment in lieu of taxes (PILOTs) agreement for residential development or rehabilitation. A PILOT agreement allows developers to pay a percentage of rental income to a municipality in place of traditional taxes to offset costs associated with developing affordable housing.
Help is available
The attorneys at O’Reilly Rancilio are available to answer questions about the new Michigan state laws. Municipalities, property owners, developers, or others who need assistance should call 586-726-1000 or visit our website.
© 2024 O'Reilly Rancilio P.C.|Legal Disclaimer|Privacy Policy