SENATE BILL NO. 892
February 18, 1998, Introduced by Senators STALLINGS, MILLER, V. SMITH and YOUNG and referred to the Committee on Finance. A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 7d (MCL 211.7d), as amended by 1987 PA 200. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 7d. (1) Housing owned and operated by a nonprofit cor- 2 poration or association or by the THIS state, a political sub- 3 division of the THIS state, or an instrumentality of the THIS 4 state, for occupancy or use solely by elderly or handicapped 5 DISABLED families is exempt from all general property taxation by 6 the state, city, village, or county, or by a public body or 7 agency. For purposes of this section, housing shall be consid- 8 ered occupied solely by elderly or handicapped DISABLED fami- 9 lies even if 1 or more of the units is occupied by service 10 personnel, such as a custodian or nurse, OR BY 1 OR MORE PERSONS 11 FOR WHOM THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN 05190'97 FDD 2 1 DEVELOPMENT HAS WAIVED THE ADMISSION REQUIREMENTS SET FORTH IN 2 SECTION 202 OF TITLE II OF THE HOUSING ACT OF 1959, PUBLIC LAW 3 86-372, 12 U.S.C. 1701q. 4 (2) As used in this section, "elderly or handicapped 5 DISABLED families" means families consisting of 2 or more persons 6 if the head of the household, or his or her spouse, is 62 years 7 of age or over or is handicapped DISABLED, and includes a 8 single person who is 62 years of age or over or is handicapped 9 DISABLED. 10 (3) As used in this section, "handicapped person" means 11 that term as defined in section 202 of the national housing act 12 of 1959, as amended, 12 U.S.C. 1701q. 13 (3) (4) "Housing" means new or rehabilitated structures 14 with 8 or more residential units in 1 or more of the structures 15 for occupancy and use by elderly persons, including essential 16 contiguous land and related facilities as well as all personal 17 property of the corporation or association used in connection 18 with the facilities. As used in this subsection, "residential 19 units" include individual self-contained dwellings, or 1-bedroom 20 units in a facility for persons with a mental illness, a develop- 21 mental disability, or a physical handicap DISABILITY as those 22 terms are defined in the adult foster care facility licensing 23 act, Act No. 218 of the Public Acts of 1979, being sections 24 400.701 to 400.737 of the Michigan Compiled Laws 1979 PA 218, 25 MCL 400.701 TO 400.737, that share dining, living, or bathroom 26 facilities, that is financed at the time of construction or 27 rehabilitation under section 202 of title II of the housing act 05190'97 3 1 of 1959, PUBLIC LAW 86-372, 12 U.S.C. 1701q, and that is licensed 2 as an adult foster care facility under the adult foster care 3 facility licensing act, Act No. 218 of the Public Acts of 1979 4 1979 PA 218, MCL 400.701 TO 400.737. 5 (4) (5) "Nonprofit corporation or association" means a 6 nonprofit corporation or association incorporated under the laws 7 of this state not otherwise exempt from general ad valorem real 8 and personal property taxes operating a housing facility or 9 project qualified, built, or financed under section 202 of TITLE 10 II OF the national housing act of 1959, as amended, PUBLIC LAW 11 86-372, 12 U.S.C. 1701q, or section 236 of the national housing 12 act, as added by Public Law 90-448 CHAPTER 847, 82 STAT. 498, 13 12 U.S.C. 1715z-1. 14 (5) (6) When a tax roll is placed in the hands of a city, 15 county, village, or township treasurer for collection, and there 16 are taxes assessed on that roll against property concerning which 17 exemption is claimed under this section, the treasurer shall pre- 18 pare a statement on a form prescribed by the department of man- 19 agement and budget showing all descriptions for which exemptions 20 have been claimed under this section, the names and addresses of 21 the corporations or associations entitled to the exemptions, the 22 total amount of taxes so exempted, and the amount of taxes 23 assessed against the descriptions. The city, county, village, or 24 township treasurer shall forward the statement to the department 25 of management and budget, upon verification of which the state 26 treasurer shall draw his or her warrant upon the state treasury 27 for the total amount of tax revenues lost by a local taxing unit 05190'97 4 1 as a result of the nonprofit housing exemption allowed by this 2 act as shown by the statement. The state treasurer after exami- 3 nation of the statement shall forward the warrants to the city, 4 county, village, or township treasurer. 5 (6) (7) The budget director shall estimate, as near as may 6 be, the amount of money necessary to meet the expense of adminis- 7 tering the provisions of this section under this act during each 8 year, and the expense shall be met by a specific appropriation 9 included in the budget. 05190'97 Final page. FDD