May 24, 2005, Introduced by Senator EMERSON and referred to the Committee on Finance.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending sections 10 and 11 (MCL 207.780and 207.781), as amended
by 2001 PA 217.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) Except as provided in subsections (2) and (3),
the effective date of the neighborhood enterprise zone certificate
is December 31 in the year in which the new facility or
rehabilitated facility is substantially completed and, for a new
facility, occupied by an owner as a principal residence, as
evidenced by the owner filing with the assessor of the local
assessing unit all of the following:
(a) For a new facility, a certificate of occupancy.
(b) For a rehabilitated facility, a certificate that the
improvements meet minimum local building code standards issued by
the local building inspector or other authorized officer or a
certificate of occupancy if required by local building permits or
building codes.
(c) For a rehabilitated facility, documentation proving the
cost
requirements of section 2(h) 2(k) are met.
(d) For a homestead facility or a new facility, an affidavit
executed by an owner affirming that the homestead facility or new
facility is occupied by an owner as a principal residence.
(2) If a new facility is substantially completed in a year but
is not occupied by an owner as a principal residence until the
following year, upon the request of the owner, the effective date
of the neighborhood enterprise zone certificate shall be December
31 in the year immediately preceding the date of occupancy by the
owner as a principal residence.
(3) Upon the request of the owner, the effective date of the
neighborhood enterprise zone certificate for a rehabilitated
facility shall be December 31 in the year immediately preceding the
date on which the rehabilitated facility is substantially
completed.
Sec. 11. (1) Upon receipt of a request by certified mail to
the commission by the holder of a neighborhood enterprise zone
certificate requesting revocation of the certificate, the
commission by order shall revoke the certificate.
(2) The certificate shall expire if the owner fails to
complete the filing requirements under section 10 within 2 years of
the date the certificate was issued. The holder of the certificate
may request in writing to the commission a 1-year automatic
extension of the certificate if the owner has proceeded in good
faith with the construction or rehabilitation of the facility in a
manner consistent with the purposes of this act and the delay in
completion or occupancy by an owner is due to circumstances beyond
the control of the holder of the certificate. Upon request of the
local governmental unit, the commission shall extend the
certificate if the new facility has not been occupied.
(3) The certificate for a homestead facility or new facility
is automatically revoked if the homestead facility or new facility
is no longer a homestead as that term is defined in section 7a of
the general property tax act, 1893 PA 206, MCL 211.7a. However, if
the owner or any subsequent owner submits a certificate before the
revocation is effective, the commission, upon application of the
owner, shall rescind the order of revocation. If the certificate is
submitted after revocation of the certificate, the commission, upon
application of the owner, shall reinstate the certificate for the
remaining period of time for which the original certificate would
have been in effect.
(4) If the owner of the facility fails to make the annual
payment of the neighborhood enterprise zone tax and the ad valorem
property tax on the land under the general property tax act, 1893
PA 206, MCL 211.1 to 211.157, the commission by order shall revoke
the certificate. However, if payment of these taxes is made before
the revocation is effective, the commission, upon application of
the owner, shall rescind the order of revocation. If payment of
these taxes and any subsequent ad valorem property tax due on the
facility is made after revocation of the certificate, the
commission, upon application of the owner, shall reinstate the
certificate for the remaining period of time for which the original
certificate would have been in effect.
(5) If a homestead facility, a new facility, or a
rehabilitated facility ceases to have as its primary purpose
residential housing, the commission by order shall revoke the
certificate for that facility. A new or rehabilitated facility does
not cease to be used for its primary purpose if it is temporarily
damaged or destroyed in whole or in part.
(6) If the governing body of a local governmental unit
determines that a homestead facility, a new facility, or a
rehabilitated facility is not in compliance with any local
construction, building, or safety codes and notifies the commission
by certified mail of the noncompliance, the commission by order
shall revoke the certificate.
(7) The revocation shall be effective beginning the December
31 following the date of the order or, if the certificate is
automatically revoked under subsection (3), the December 31
following the automatic revocation. The commission shall send by
certified mail copies of the order of revocation to the holder of
the certificate, to the local governmental unit in which the
facility is located, to the assessor of that local governmental
unit, and to the legislative body of each taxing unit that levies
taxes upon property in the local governmental unit in which the new
facility or rehabilitated facility is located.