HB-6639, As Passed Senate, December 14, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6639

     A bill to amend 1945 PA 344, entitled

"An act to authorize counties, cities, villages and townships of

this state to adopt plans to prevent blight and to adopt plans for

the rehabilitation of blighted areas; to authorize assistance in

carrying out such plans by the acquisition of real property, the

improvement of such real property and the disposal of real property

in such areas; to prescribe the methods of financing the exercise

of these powers; and to declare the effect of this act,"

by amending sections 2, 3, and 5 (MCL 125.72, 125.73, and 125.75),

sections 2 and 3 as amended by 1986 PA 320.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Blighted area" means a portion of a municipality,

developed or undeveloped, improved or unimproved, with business or

residential uses, marked by a demonstrated pattern of deterioration

in physical, economic, or social conditions, and characterized by

such conditions as functional or economic obsolescense of buildings

or the area as a whole, physical deterioration of structures,

substandard building or facility conditions, improper or

inefficient division or arrangement of lots and ownerships and

streets and other open spaces, inappropriate mixed character and

uses of the structures, deterioration in the condition of public

facilities or services, or any other similar characteristics which

endanger the health, safety, morals, or general welfare of the

municipality, and which may include any buildings or improvements

not in themselves obsolescent, and any real property, residential

or nonresidential, whether improved or unimproved, the acquisition

of which is considered necessary for rehabilitation of the area. It

is expressly recognized that blight is observable at different

stages of severity, and that moderate blight unremedied creates a

strong probability that severe blight will follow. Therefore, the

conditions that constitute blight are to be broadly construed to

permit a municipality to make an early identification of problems

and to take early remedial action to correct a demonstrated pattern

of deterioration and to prevent worsening of blight conditions.

     (b) "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 under this act for the

rehabilitation of a blighted area, platting 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 eligibility for any project authorized

under this act for the rehabilitation of a blighted area, platting

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.

(c)  (b) "Municipality" means a county, city, village, or

township in the state.

(d)  (c) "Development plan" means a plan for the

rehabilitation of all or any part of a blighted area.

(e)  (d) "Development area" means that portion of a blighted

area to which a development plan is applicable.

(f)  (e) "Real property" means land, buildings, 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,

or appurtenant thereto, legal or equitable, including rights of

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

mortgage, judgment, or otherwise.

(g)  (f) "Local taxes" means state, county, city, village,

township and school taxes, any special district taxes, and any

other tax on real property, but does not include special assessment

for local benefit improvements.

(h)  (g) "Public use" when used with reference to land

reserved for public use means only such uses as are for the general

use and benefit of the public as a whole, such as schools,

libraries, public institutions, administration buildings, parks,

boulevards, playgrounds, streets, alleys, or easements for sewers,

public lighting, water, gas, or other similar utilities.

(i)  (h) "Project" means all of the undertakings authorized

House Bill No. 6639 as amended December 14, 2006

in this act for the rehabilitation of a blighted area.

     Sec. 3. A municipality may bring about the rehabilitation of

blighted areas and the prevention, reduction, or elimination of

blight, blighting factors, or causes of blight, and for that

purpose may  acquire  do any of the following:

     (a) Acquire real property by purchase, gift, or exchange.  ,

or

     (b) Acquire under this act blighted property by condemnation.

, and may lease,

     (c) Lease, sell, renovate, improve, or exchange  such

blighted property or other real property acquired by other means in

accordance with the  provisions of  state constitution of 1963 and

this act.

     Sec. 5. (1) For the accomplishment of the purposes of this

act, the municipality shall 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

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. No  A

resident owner in a development area may not be dispossessed after

condemnation under the provisions of this act until other adequate

housing accommodations are available, to the people displaced.