March 22, 2005, Introduced by Reps. Virgil Smith, McConico, Tobocman, Hunter, Gaffney, Waters, Cheeks, Cushingberry, Leland 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 3 and 4 (MCL 207.773 and 207.774), section 3
as amended by 2004 PA 396 and section 4 as amended by 2004 PA 566.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) The governing body of a local governmental unit by
resolution may designate 1 or more neighborhood enterprise zones
within that local governmental unit. A neighborhood enterprise zone
shall contain not less than 10 platted parcels of land. All the
land within a neighborhood enterprise zone shall also be compact
and contiguous. Contiguity is not broken by a road, right-of-way,
or property purchased or taken under condemnation if the purchased
or condemned property was a single parcel prior to the sale or
condemnation.
(2) The total acreage of the neighborhood enterprise zones
containing only new facilities or rehabilitated facilities or any
combination of new facilities or rehabilitated facilities
designated under this act shall not exceed 15% of the total acreage
contained within the boundaries of the local governmental unit. The
total acreage of the neighborhood enterprise zones containing only
homestead facilities designated under this act shall not exceed 15%
of the total acreage contained within the boundaries of the local
governmental unit.
(3) Not less than 60 days before the passage of a resolution
designating a neighborhood enterprise zone or the repeal or
amendment of a resolution under subsection (5), the clerk of the
local governmental unit shall give written notice to the assessor
and to the governing body of each taxing unit that levies ad
valorem property taxes in the proposed neighborhood enterprise
zone. Before acting upon the resolution, the governing body of the
local governmental unit shall make a finding that a proposed
neighborhood enterprise zone is consistent with the master plan of
the local governmental unit and the neighborhood preservation and
economic development goals of the local governmental unit. The
governing body before acting upon the resolution shall also adopt a
statement of the local governmental unit's goals, objectives, and
policies relative to the maintenance, preservation, improvement,
and development of housing for all persons regardless of income
level living within the proposed neighborhood enterprise zone.
Additionally, before acting upon the resolution, the governing body
of a local governmental unit with a population greater than 20,000
shall pass a housing inspection ordinance. A local governmental
unit with a population of 20,000 or less may pass a housing
inspection ordinance. Before the sale of a unit in a new or
rehabilitated facility for which a neighborhood enterprise zone
certificate is in effect, an inspection shall be made of the unit
to determine compliance with any local construction or safety codes
and that a sale may not be finalized until there is compliance with
those local construction or safety codes. The governing body shall
hold a public hearing not later than 45 days after the date the
notice is sent but before acting upon the resolution.
(4) Upon receipt of a notice under subsection (3), the
assessor shall determine and furnish to the governing body of the
local governmental unit the amount of the true cash value of the
property located within the proposed neighborhood enterprise zone
and any other information considered necessary by the governing
body.
(5) A resolution designating a neighborhood enterprise zone,
other than a zone designated under subsection (2), may be repealed
or amended not sooner than 3 years after the date of adoption or of
the most recent amendment of the resolution by the governing body
of the local governmental unit. The repeal or amendment of the
resolution shall take effect 6 months after adoption. However, an
action taken under this subsection does not invalidate a
certificate that is issued or in effect and a facility for which a
certificate is issued or in effect shall continue to be included in
the total acreage limitations under this section until the
certificate is expired or revoked.
(6) Upon passage, amendment, or repeal of a resolution under
this section, the clerk of the local governmental unit shall notify
the commission of the action taken.
Sec. 4. (1) The owner of a homestead facility or owner or
developer or prospective owner or developer of a proposed new
facility or an owner or developer or prospective developer
proposing to rehabilitate property located in a neighborhood
enterprise zone may file an application for a neighborhood
enterprise zone certificate with the clerk of the local
governmental unit. The application shall be filed in the manner and
form prescribed by the commission. The clerk of the local
governmental unit shall provide a copy of each homestead facility
application to the assessor for the local governmental unit. Except
as provided in subsection (2), the application shall be filed
before a building permit is issued for the new construction or
rehabilitation of the facility.
(2) An application may be filed after a building permit is
issued only if 1 or more of the following apply:
(a) For the rehabilitation of a facility if the area in which
the facility is located is designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in the
calendar year 1992 and if the building permit is issued for the
rehabilitation before December 31, 1994 and after the date on which
the area in which the facility is located was designated as a
neighborhood enterprise zone by the governing body of the local
governmental unit.
(b) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in calendar year 1992 or 1993 and if the building permit is
issued for that new facility before December 31, 1995 and after
January 1, 1993.
(c) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in July 1997 and if the building permit is issued for that new
facility on February 3, 1998.
(d) For a new facility or a rehabilitated facility if the area
in which the new facility or rehabilitated facility is located was
designated as a neighborhood enterprise zone by the governing body
of the local governmental unit in July 1996 and if the building
permit was issued for that facility on or before July 3, 2001.
(e) For a new facility or a rehabilitated facility if the area
in which the new facility or rehabilitated facility is located was
designated as a neighborhood enterprise zone by the governing body
of the local governmental unit in October 1994 and if the building
permit was issued for that facility on or before April 25, 1997.
(f) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in September 2001 and if the building permit is issued for
that new facility on March 3, 2003.
(g) For a rehabilitated facility if all or a portion of the
rehabilitated facility is a qualified historic building.
(h) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in July 1993 and the new facility was a model home.
(i) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in August 2004 and if building permits were issued for that
facility beginning November 5, 2002 through December 23, 2003.
(j) For a homestead facility.
(3) The application shall contain or be accompanied by all of
the following:
(a) A general description of the homestead facility, new
facility, or proposed rehabilitated facility.
(b) The dimensions of the parcel on which the homestead
facility, new facility, or proposed rehabilitated facility is or is
to be located.
(c) The general nature and extent of the construction to be
undertaken.
(d) A time schedule for undertaking and completing the
rehabilitation of property or the construction of the new facility.
(e) Any other information required by the local governmental
unit.
(4) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (2)(c), the effective date of the
certificate shall be the first day of the tax year following the
year the certificate is approved by the commission.
(5) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (2)(d) or the amendatory act that added
subsection (2)(e), the effective date of the certificate shall be
January 1, 2001.
(6) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (2)(j), the effective date of the
certificate shall be the first day of the tax year following the
year the certificate is approved by the commission.