HB-6638, As Passed Senate, December 14, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6638

     A bill to amend 1949 PA 208, entitled

"An act to authorize cities, villages and townships of this state

to designate neighborhood areas for the purpose of planning and

carrying out local public improvements for the prevention of blight

within such areas; to authorize assistance in carrying out plans

for local improvements by the acquisition and disposal of real

property in such areas; to provide for the combining of

neighborhood improvements that benefit the entire neighborhood into

1 improvement project; to provide for the establishment of local

assessment districts coterminous with the neighborhood boundaries;

to prescribe the methods of financing the exercise of these powers,

and to declare the effect of this act,"

by amending sections 2 and 4 (MCL 125.942 and 125.944).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2.  The following terms whenever used or referred to  As

used in this act:  shall have the following respective meanings,

unless a different meaning clearly appears from the context:

     Wherever appropriate the singular includes the plural and

plural includes the singular;

(a) "Neighborhood area"  shall mean  means a portion of a

municipality  which  that has been delimited as a neighborhood unit

in a plan of neighborhoods adopted by the legislative body, which

plan  shall have  has the function of designating the service area

of elementary schools, playgrounds, or other local improvements.  ;

(b) "Real property"  shall include  includes land, building

improvements, land under water, waterfront property, and any and

all easements, franchises, and hereditaments, corporeal or

incorporeal, and every estate, interest, privilege, easement,

franchise, and right  therein  to that property, or appurtenant

thereto  to that property, legal or equitable, including rights-of-

way, terms for years, and liens, charges, or incumbrances by

mortgage, judgment, or otherwise.  ;

(c) "Municipality"  shall mean any duly incorporated  means a

city, village, or township.  ;

(d) "Legislative body"  shall mean  means the city council,

city commission,  board of aldermen, township board, or other

legislative body  having the power to pass ordinances or measures

and to otherwise legislate concerning  of a city, village, or

township.  affairs;

(e) "Public use", when used with reference to land reserved

for  such  that purpose,  shall mean  means and  be deemed to

relate  relates to  such uses  as are for the general benefit of

the public, such as schools, libraries, public institutions,

administration buildings, parks, boulevards, playgrounds, streets,

alleys, easements or sewers, public lighting, water, gas, or other

similar utilities, or improvements.  ;

(f) "Privately owned lands"  shall mean  means all land not

held by the municipal body, county, state, or federal government

for public purposes.  ;

(g) "Owner"  shall mean  means any person  , or persons,

natural or corporate, owning a legal or equitable title to the

land.  ;

(h) "Project"  shall mean  means all of the undertakings

herein authorized in this act for the improvement of a

neighborhood area.

     (i) "Blighted property" means property that meets any of the

following criteria:

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

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

related code or ordinance.

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

condition or use.

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

the safety of persons or property.

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

sewerage disconnected, destroyed, removed, or rendered ineffective

for a period of 1 year or more so that the property is unfit for

its intended use.

     (v) The property is tax reverted property owned by a

municipality, by a county, or by this state. The sale, lease, or

transfer of tax reverted property by a municipality, a county, or

this state shall not result in the loss to the property of

eligibility for any project authorized for the improvement of a

neighborhood area under this act, tax or special assessment

authorized under this act, or tax relief or assistance, including

financial assistance, authorized under this act or any other act.

     (vi) The property is owned or is under the control of a land

bank fast track authority under the land bank fast track act, 2003

PA 258, MCL 124.751 to 124.774. The sale, lease, or transfer of the

property by a land bank fast track authority shall not result in

the loss to the property of the eligibility for any project

authorized for the improvement of a neighborhood area under this

act, tax or special assessment authorized under this act, or tax

relief or assistance, including financial assistance, authorized

under this act or any other act.

     (vii) The property is improved real property that has remained

vacant for 5 consecutive years and that is not maintained in

accordance with applicable local housing or property maintenance

codes or ordinances.

     (viii) The property has code violations posing a severe and

immediate health or safety threat and has not been substantially

rehabilitated within 1 year after the receipt of notice to

rehabilitate from the appropriate code enforcement agency or final

determination of any appeal, whichever is later.

     Sec. 4. (1) For the accomplishment of the purposes of this

act, the municipality may acquire fee simple title in real property

by purchase, gift, or exchange  ,  and may acquire under this act

title to blighted property by condemnation.  or otherwise, and  The

municipality shall then apply  such  that blighted property

acquired by condemnation under this act and other real property

House Bill No. 6638 as amended December 14, 2006

thereafter  acquired by other means to the expressed purposes of

this act.

(2)  The  By authority of this act for blighted property<<,>> or by

authority of other state law authorizing the condemnation of

property for <<other public uses>>, the local legislative body may

institute

and prosecute proceedings under the power of eminent domain in

accordance with the state constitution of 1963 and the laws of the

state or provisions of any local charter relative to condemnation.

The purposes contemplated by this act are hereby declared to be

public purposes within the meaning of the constitution, state laws

and charters relative to the power of eminent domain.