SHARING COSTS FOR IMPROVEMENTS

BORDERING PRIVATE ROADS

House Bill 4030 (proposed substitute H-3)

Sponsor:  Rep. Sue Allor

Committee:  Local Government and Municipal Finance

Complete to 2-5-20

SUMMARY:

House Bill 4030 would amend the Maintenance of Private Roads Act. Currently, if at least 51% of property owners owning frontage along a private road petition for improvement or maintenance, the township board can create a special assessment district and the cost of maintenance or improvement is shared by owners in the district on a pro rata frontage basis (in other words, proportionately based on the amount of land bordering the road).

The bill would retain that cost sharing option and add the alternative that the cost allocation be spread against each owner equally in the special assessment district to be benefited.

Then, as under current law, the maintenance or improvement and cost assessment could not be completed until the special assessment board had been created and each property had been assessed with proper notice of public hearings.

MCL 247.392

FISCAL IMPACT:

The bill would have no fiscal impact on the state or local units of government. However, the bill could change the distribution of the cost for maintenance or improvement of private roads to owners in the private road special assessment district.

                                                                                        Legislative Analyst:   Jenny McInerney

                                                                                                Fiscal Analyst:   Ben Gielczyk

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.