HOUSE BILL No. 5384

 

December 16, 2003, Introduced by Reps. Tobocman, Law, Hunter, Bieda, Jamnick, Lipsey, Ward, Hager, Stewart, Mortimer, Accavitti and Pappageorge and referred to the Committee on Local Government and Urban Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 2002 PA 27, entitled                                              

                                                                                

    "An act to establish procedures for municipalities to designate             

    individual lots or structures as blighting; to purchase or                  

    condemn blighting property; to transfer blighting property for              

    development; and to repeal acts and parts of acts,"                         

                                                                                

    by amending sections 2 and 4 (MCL 125.2802 and 125.2804), section           

                                                                                

    2 as amended by 2003 PA 129.                                                

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 2.  As used in this act:                                               

                                                                                

2       (a) "Attractive nuisance" means a condition on property that                

                                                                                

3   children are reasonably likely to come in contact with or be                

                                                                                

4   exposed to and that involves an unreasonable risk of death or               

                                                                                

5   serious bodily harm to children.                                            

                                                                                

6       (b) "Blighting property", subject to subdivision (c), means                 

                                                                                

7   property that is likely to have a negative financial impact on              

                                                                                

8   the value of surrounding property or on the increase in value of            

                                                                                

9   surrounding property and that meets any of the following                    


                                                                                

1   criteria:                                                                   

                                                                                

2                                                                                (i) The property has been declared a public nuisance in                             

                                                                                

3   accordance with a local housing, building, plumbing, fire, or               

                                                                                

4   other related code or ordinance.                                            

                                                                                

5       (ii) The property is an attractive nuisance because of                       

                                                                                

6   physical condition, use, or occupancy.  A structure or lot is not           

                                                                                

7   blighting property under this subparagraph because of an activity           

                                                                                

8   that is inherent to the functioning of a lawful business.                   

                                                                                

9       (iii) The property is a fire hazard or is otherwise dangerous                

                                                                                

10  to the safety of persons or property.                                       

                                                                                

11      (iv) The property has had the utilities, plumbing, heating,                  

                                                                                

12  or sewerage permanently disconnected, destroyed, removed, or                

                                                                                

13  rendered ineffective so that the property is unfit for its                  

                                                                                

14  intended use.                                                               

                                                                                

15      (v) A portion of a building or structure located on the                     

                                                                                

16  property has been damaged by any event so that the structural               

                                                                                

17  strength or stability of the building or structure is appreciably           

                                                                                

18  less than it was before the event and does not meet the minimum             

                                                                                

19  requirements of the housing law of Michigan, 1917 PA 167,                   

                                                                                

20  MCL 125.401 to 125.543, or a building code of the city, village,            

                                                                                

21  or township in which the building or structure is located for a             

                                                                                

22  new building or structure.                                                  

                                                                                

23      (vi) A building or structure or part of a building or                        

                                                                                

24  structure located on the property is likely to fall, become                 

                                                                                

25  detached or dislodged, or collapse and injure persons or damage             

                                                                                

26  property.                                                                   

                                                                                

27      (vii) A building or structure located on the property used or                


                                                                                

1   intended to be used as a dwelling or for industrial use,                    

                                                                                

2   including the adjoining grounds, because of dilapidation, decay,            

                                                                                

3   damage, or faulty construction; accumulation of trash or debris;            

                                                                                

4   an infestation of rodents or other vermin; or any other reason,             

                                                                                

5   is unsanitary or unfit for human habitation, is in a condition              

                                                                                

6   that a local health officer determines is likely to cause                   

                                                                                

7   sickness or disease, or is likely to injure the health, safety,             

                                                                                

8   or general welfare of people living in the dwelling.                        

                                                                                

9       (c) "Blighting property" does not include any of the                        

                                                                                

10  following:                                                                  

                                                                                

11                                                                               (i) Structures or lots, whether improved or unimproved, that                        

                                                                                

12  are inherent to the functioning of a farm or farm operation as              

                                                                                

13  those terms are defined in section 2 of the Michigan right to               

                                                                                

14  farm act, 1981 PA 93, MCL 286.472.                                          

                                                                                

15      (ii) Structures or lots, whether improved or unimproved,                     

                                                                                

16  that are industrial properties in an area zoned industrial and              

                                                                                

17  that are current on tax obligations.                                        

                                                                                

18      (ii)  (iii)  Track belonging to a railroad company,                            

                                                                                

19  right-of-way belonging to a railroad company, rolling stock                 

                                                                                

20  belonging to a railroad company, or any other property                      

                                                                                

21  necessarily used in operating a railroad in this state belonging            

                                                                                

22  to a railroad company.                                                      

                                                                                

23      (iii)  (iv)  A single family dwelling for which the owner                     

                                                                                

24  claims an exemption under section 7cc of the general property tax           

                                                                                

25  act, 1893 PA 206, MCL 211.7cc.                                              

                                                                                

26      (d) "Dwelling" means any house, building, structure, tent,                  

                                                                                

27  shelter, trailer, or vehicle, or portion thereof, which is                  


                                                                                

1   occupied in whole or in part as the home, residence, or living or           

                                                                                

2   sleeping place of 1 or more human beings, either permanently or             

                                                                                

3   transiently.  Dwelling does not include railroad rolling stock on           

                                                                                

4   tracks or rights-of-way.                                                    

                                                                                

5       (e) "Fire hazard" means that term as defined in section 1 of                

                                                                                

6   the fire prevention code, 1941 PA 207, MCL 29.1.                            

                                                                                

7       (f) "Municipality" means a city, village, or township in this               

                                                                                

8   state or a county described in section 3(1)(b).                             

                                                                                

9       (g) "Person" means an individual, partnership, association,                 

                                                                                

10  trust, or corporation, or any other legal entity.                           

                                                                                

11      (h) "Public nuisance" means an unreasonable interference with               

                                                                                

12  a common right enjoyed by the general public involving conduct              

                                                                                

13  that significantly interferes, or that is known or should have              

                                                                                

14  been known to significantly interfere, with the public's health,            

                                                                                

15  safety, peace, comfort, or convenience, including conduct                   

                                                                                

16  prescribed by law.                                                          

                                                                                

17      (i) "Taxing jurisdiction" means a jurisdiction, including,                  

                                                                                

18  but not limited to, this state, an agency of this state, a state            

                                                                                

19  authority, an intergovernmental authority of this state, a school           

                                                                                

20  district, or a municipality, that levies taxes under the general            

                                                                                

21  property tax act, 1893 PA 206, MCL 211.1 to 211.157.                        

                                                                                

22      Sec. 4.  (1) A municipality that proposes to designate a                    

                                                                                

23  property as blighting property under section 3 shall hold a                 

                                                                                

24  hearing on the designation.  The hearing shall take place not               

                                                                                

25  less than 42 days, and not more than 119 days, after the                    

                                                                                

26  municipality provides written notice of the hearing and the                 

                                                                                

27  proposed designation as required by this section.  A municipality           


                                                                                

1   may hold the hearing more than 119 days after it provides written           

                                                                                

2   notice only if an extension is requested by a person with a legal           

                                                                                

3   interest in the property that is contesting the blighting                   

                                                                                

4   designation.                                                                

                                                                                

5       (2) The written notice provided under this section shall                    

                                                                                

6   explain, in plain English, that the property is subject to                  

                                                                                

7   designation as blighting property, and shall include all of the             

                                                                                

8   following:                                                                  

                                                                                

9       (a) The time, date, and location of the hearing.                            

                                                                                

10      (b) A description, including the street address, of the                     

                                                                                

11  property subject to designation as blighting property.                      

                                                                                

12      (c) An explanation of the reasons the municipality considers                

                                                                                

13  the property to be blighting property.                                      

                                                                                

14      (d) The name, address, and telephone number of the person to                

                                                                                

15  whom communications about the hearing may be addressed.                     

                                                                                

16      (e) Names, addresses, and telephone numbers of public and                   

                                                                                

17  private agencies or other resources that may be available to                

                                                                                

18  assist an occupant of the property to avoid the designation of              

                                                                                

19  the property as blighting property or, if the property is a                 

                                                                                

20  dwelling, to obtain comparable safe, decent, and quality                    

                                                                                

21  affordable housing.                                                         

                                                                                

22      (f) A description of the improvements that should be made to                

                                                                                

23  the property before the hearing to avoid designation of the                 

                                                                                

24  property as blighting.                                                      

                                                                                

25      (3) The municipality shall perform a thorough title search to               

                                                                                

26  identify all persons with a legal interest in the property.  The            

                                                                                

27  municipality shall take the following steps to provide notice to            


                                                                                

1   any person with a legal interest in the property:                           

                                                                                

2       (a) Determine the address reasonably calculated to apprise                  

                                                                                

3   those persons with a legal interest in the property of the                  

                                                                                

4   pendency of the hearing under this section and send notice of the           

                                                                                

5   hearing to each person with a legal interest in the property by             

                                                                                

6   certified mail, return receipt requested, not less than 42 days             

                                                                                

7   before the hearing.                                                         

                                                                                

8       (b) Send a representative to the property to ascertain                      

                                                                                

9   personally whether or not the property is occupied.  If the                 

                                                                                

10  property appears to be occupied, the municipality shall do all of           

                                                                                

11  the following not less than 42 days before the hearing:                     

                                                                                

12                                                                               (i) Make reasonable efforts in good faith personally to serve                       

                                                                                

13  upon a person occupying the property a copy of the written notice           

                                                                                

14  described in subsection (2).                                                

                                                                                

15      (ii) If a person occupying the property is personally served,                

                                                                                

16  orally inform the occupant of both of the following:                        

                                                                                

17      (A) That the property may be designated as blighting                        

                                                                                

18  property.                                                                   

                                                                                

19      (B) Public and private agencies or other resources that may                 

                                                                                

20  be available to assist the occupant to avoid the designation of             

                                                                                

21  the property as blighting property or, if the property is a                 

                                                                                

22  dwelling, to obtain comparable safe, decent, and quality                    

                                                                                

23  affordable housing.                                                         

                                                                                

24      (iii) If the property is a dwelling and the occupant                         

                                                                                

25  indicates that he or she has a health problem that affects his or           

                                                                                

26  her ability to make improvements that will cause the property no            

                                                                                

27  longer to meet the definition of blighting property or if it                


                                                                                

1   should be apparent to the representative of the municipality that           

                                                                                

2   the occupant has such a health problem, place the occupant with             

                                                                                

3   an appropriate public or private agency to assist the occupant to           

                                                                                

4   avoid the designation of the property as blighting property.                

                                                                                

5       (iv) If the occupant appears to lack the ability to                          

                                                                                

6   understand the advice given or is unwilling to cooperate, provide           

                                                                                

7   the occupant with the names and telephone numbers of public and             

                                                                                

8   private agencies that may be able to assist the occupant.                   

                                                                                

9       (v) If an authorized representative of the municipality is                  

                                                                                

10  not able personally to meet with the occupant, place the written            

                                                                                

11  notice at a conspicuous location on the property.                           

                                                                                

12      (c) Correct any deficiency that the municipality may know of                

                                                                                

13  in the provision of the notice required by this section as soon             

                                                                                

14  as practicable before designating the property as blighting                 

                                                                                

15  property.                                                                   

                                                                                

16      (d) If the municipality is unable to ascertain the address                  

                                                                                

17  reasonably calculated to apprise all persons with a legal                   

                                                                                

18  interest in the property of the pendency of the hearing, or is              

                                                                                

19  unable to deliver notice to any occupant of the property, service           

                                                                                

20  of the notice shall be made by publication.  The notice shall be            

                                                                                

21  published for 3 successive weeks, once each week, in a newspaper            

                                                                                

22  published and circulated in the county in which the property is             

                                                                                

23  located, if there is one.  If no paper is published in that                 

                                                                                

24  county, publication shall be made in a newspaper published and              

                                                                                

25  circulated in an adjoining county.                                          

                                                                                

26      (4) Any notice provided under this section shall include an                 

                                                                                

27  explanation of any tax benefits or other incentives offered by              


                                                                                

1   the municipality that may encourage the transfer of the blighting           

                                                                                

2   property.                                                                   

                                                                                

3       Enacting section 1.  This amendatory act takes effect                       

                                                                                

4   January 1, 2004.