HOUSE BILL No. 4091
January 24, 2019, Introduced by Reps. LaFave, Leutheuser, Yaroch, Markkanen and Howell and referred to the Committee on Commerce and Tourism.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending sections 2 and 8 (MCL 207.772 and 207.778), section 2
as amended by 2010 PA 9 and section 8 as amended by 2005 PA 339.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(b) "Condominium unit" means that portion of a structure
intended for separate ownership, intended for residential use, and
established pursuant to the condominium act, 1978 PA 59, MCL
559.101 to 559.276. Condominium units within a qualified historic
building may be held under common ownership.
(c) "Developer" means a person who is the owner of a new
facility at the time of construction or of a rehabilitated facility
at the time of rehabilitation for which a neighborhood enterprise
zone certificate is applied for or issued.
(d) "Facility" means a homestead facility, a new facility, or
a rehabilitated facility.
(e) "Homestead facility" means 1 of the following:
(i) An an existing structure, purchased by or transferred to
an owner after December 31, 1996, that has as its primary purpose
residential housing consisting of 1 or 2 units, 1 of which is
occupied by an owner as his or her principal residence. and that is
located within a subdivision platted pursuant to state law before
January 1, 1968 other than an existing structure for which a
certificate will or has been issued after December 31, 2006 in a
city with a population of 750,000 or more, is located within a
subdivision platted pursuant to state law before January 1, 1968.
(ii) An existing structure that has as its primary purpose
residential housing consisting of 1 or 2 units, 1 of which is
occupied by an owner as his or her principal residence that is
located in a subdivision platted after January 1, 1999 and is
located in a county with a population of more than 400,000 and less
than 500,000 according to the most recent decennial census and is
located in a city with a population of more than 100,000 and less
than 125,000 according to the most recent decennial census.
(f) "Local governmental unit" means a qualified local
governmental unit as that term is defined under section 2 of the
obsolete property rehabilitation act, 2000 PA 146, MCL 125.2782, or
a county seat.city, village, or township.
(g) "New facility" means 1 or both of the following:
(i) A new structure or a portion of a new structure that has
as its primary purpose residential housing consisting of 1 or 2
units, 1 of which is or will be occupied by an owner as his or her
principal residence. New facility includes a model home or a model
condominium unit. New facility includes a new individual
condominium unit, in a structure with 1 or more condominium units,
that has as its primary purpose residential housing and that is or
will be occupied by an owner as his or her principal residence.
Except as provided in subparagraph (ii), new facility does not
include apartments.
(ii) A new structure or a portion of a new structure that
meets all of the following:
(A) Is rented or leased or is available for rent or lease.
(B) Is a mixed use building or located in a mixed use building
that contains retail business space on the street level floor.
(C) Is located in a qualified downtown revitalization
district.
(h) "Neighborhood enterprise zone certificate" or
"certificate" means a certificate issued pursuant to sections 4, 5,
and 6.
(i) "Owner" means the record title holder of, or the vendee of
the original land contract pertaining to, a new facility, a
homestead facility, or a rehabilitated facility for which a
neighborhood enterprise zone certificate is applied for or issued.
(j) "Qualified assessing authority" means 1 of the following:
(i) For a facility other than a homestead facility, the
commission.
(ii) For a homestead facility, the assessor of the local
governmental unit in which the homestead facility is located.
(k) "Qualified downtown revitalization district" means an area
located within 1 or more of the following:
(i) The boundaries of a downtown district as defined in
section 1 of 1975 PA 197, MCL 125.1651.201 of the recodified tax
increment financing act, 2018 PA 57, MCL 125.4201.
(ii) The boundaries of a principal shopping district or a
business improvement district as defined in section 1 of 1961 PA
120, MCL 125.981.
(iii) The boundaries of the local governmental unit in an area
that is zoned and primarily used for business as determined by the
local governmental unit.
(l) "Qualified historic building" means a property within a
neighborhood enterprise zone that has been designated a historic
resource as defined under section 266 of the income tax act of
1967, 1967 PA 281, MCL 206.266.
(m) "Rehabilitated facility" means an existing structure or a
portion of an existing structure with a current true cash value of
$80,000.00 $250,000.00 or less per unit that has or will have as
its primary purpose residential housing, consisting of 1 to 8
units, the owner of which proposes improvements that if done by a
licensed contractor would cost in excess of $5,000.00 $10,000.00
per owner-occupied unit or 50% of the true cash value, whichever is
less, or $7,500.00 $15,000.00 per nonowner-occupied unit or 50% of
the true cash value, whichever is less, or the owner proposes
improvements that would be done by the owner and not a licensed
contractor and the cost of the materials would be in excess of
$3,000.00 $6,000.00 per owner-occupied unit or $4,500.00 $9,000.00
per nonowner-occupied unit and will bring the structure into
conformance with minimum local building code standards for
occupancy or improve the livability of the units while meeting
minimum local building code standards. Rehabilitated facility also
includes an individual condominium unit, in a structure with 1 or
more condominium units that has as its primary purpose residential
housing, the owner of which proposes the above described
improvements. Rehabilitated facility also includes existing or
proposed condominium units in a qualified historic building with 1
or more existing or proposed condominium units. Rehabilitated
facility does not include a facility rehabilitated with the
proceeds of an insurance policy for property or casualty loss. A
qualified historic building may contain multiple rehabilitated
facilities. Beginning in 2020 and each year thereafter, the state
treasurer shall adjust the dollar amounts described in this
subdivision by an amount determined by the state treasurer at the
end of each calendar year to reflect the cumulative annual
percentage change in the consumer price index. As used in this
subdivision, "consumer price index" means the most comprehensive
index of consumer prices available for this state from the Bureau
of Labor Statistics of the United States Department of Labor.
Sec. 8. A neighborhood enterprise zone certificate shall be in
the form prescribed and provided by the commission and shall
include both of the following:
(a) A legal description of the real property on which the new
facility is to be located or the legal description of the homestead
facility or the rehabilitated property.
(b) A statement that unless revoked under this act, the
certificate shall remain in effect for the period stated in the
certificate.