HB-4538, As Passed House, November 3, 2005
March 22, 2005, Introduced by Reps. McConico, Tobocman, Hunter, Leland, Waters, Lemmons, Jr., Cushingberry, Gaffney, Virgil Smith, Cheeks and Lemmons, III and referred to the Committee on Commerce.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending sections 2 and 8 (MCL 207.772 and 207.778), section 2
as amended by 2004 PA 396.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(b) "Condominium unit" means that portion of a structure
intended for separate ownership, intended for residential use, and
established pursuant to the condominium act, 1978 PA 59, MCL
559.101 to 559.276. Condominium units within a qualified historic
building may be held under common ownership.
(c) "Developer" means a person who is the owner of a new
House Bill No. 4538 as amended November 3, 2005
facility at the time of construction or of a rehabilitated facility
at the time of rehabilitation for which a neighborhood enterprise
zone certificate is applied for or issued.
(d) "Facility" means a homestead facility, a new facility, or
a rehabilitated facility.
(e) "Homestead facility" means an existing structure,
purchased by or transferred to an owner after December 31, 1997,
that has as its primary purpose residential housing consisting of 1
or 2 units, 1 of which is occupied by an owner as his or her
principal residence and that is located within a subdivision
platted pursuant to state law before January 1, 1968.
(f) (d)
"Local governmental
unit" means a qualified local
governmental unit as that term is defined under section 2 of the
obsolete property rehabilitation act, 2000 PA 146, MCL 125.2782[, or a
county seat].
(g) (e)
"New facility" means a
new structure or a portion of
a new structure that has as its primary purpose residential housing
consisting of 1 or 2 units, 1 of which is or will be occupied by an
owner as his or her principal residence. New facility includes a
model home or a model condominium unit. New facility includes a new
individual condominium unit, in a structure with 1 or more
condominium units, that has as its primary purpose residential
housing and that is or will be occupied by an owner as his or her
principal residence. New facility does not include apartments.
(h) (f)
"Neighborhood enterprise zone
certificate" or
"certificate" means a certificate issued pursuant to sections 4, 5,
and 6.
(i) (g)
"Owner" means the record
title holder of, or the
vendee of the original land contract pertaining to, a new facility,
a homestead facility, or a rehabilitated facility for which a
neighborhood enterprise zone certificate is applied for or issued.
(j) (h)
"Qualified historic
building" means a property
within a neighborhood enterprise zone that has been designated a
historic resource as defined under section 266 of the income tax
act of 1967, 1967 PA 281, MCL 206.266.
(k) (i)
"Rehabilitated facility"
means an existing structure
or a portion of an existing structure with a current true cash
value of $80,000.00 or less per unit that has or will have as its
primary purpose residential housing, consisting of 1 to 8 units,
the owner of which proposes improvements that if done by a licensed
contractor would cost in excess of $5,000.00 per owner-occupied
unit or 50% of the true cash value, whichever is less, or $7,500.00
per nonowner-occupied unit or 50% of the true cash value, whichever
is less, or the owner proposes improvements that would be done by
the owner and not a licensed contractor and the cost of the
materials would be in excess of $3,000.00 per owner-occupied unit
or $4,500.00 per nonowner-occupied unit and will bring the
structure into conformance with minimum local building code
standards for occupancy or improve the livability of the units
while meeting minimum local building code standards. Rehabilitated
facility also includes an individual condominium unit, in a
structure with 1 or more condominium units that has as its primary
purpose residential housing, the owner of which proposes the above
described improvements. Rehabilitated facility also includes
existing or proposed condominium units in a qualified historic
building with 1 or more existing or proposed condominium units.
Rehabilitated facility does not include a facility rehabilitated
with the proceeds of an insurance policy for property or casualty
loss. A qualified historic building may contain multiple
rehabilitated facilities.
Sec. 8. A neighborhood enterprise zone certificate shall be in
the form prescribed and provided by the commission and shall
include the following:
(a) A legal description of the real property on which the new
facility is to be located or the legal description of the homestead
facility or the rehabilitated property.
(b) A statement that unless revoked under this act, the
certificate shall remain in effect for the period stated in the
certificate.