SB-0308, As Passed House, December 12, 2013

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 308

     A bill to amend 2000 PA 146, entitled

"Obsolete property rehabilitation act,"

by amending section 8 (MCL 125.2788), as amended by 2008 PA 504.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 8. (1) If the taxable value of the property proposed to

be exempt pursuant to an application under consideration,

considered together with the aggregate taxable value of property

exempt under certificates previously granted and currently in force

under this act or under 1974 PA 198, MCL 207.551 to 207.572,

exceeds 5% of the taxable value of the qualified local governmental

unit, the legislative body of the qualified local governmental unit

shall make a separate finding and shall include a statement in its

resolution approving the application that exceeding that amount

shall not have the effect of substantially impeding the operation

of the qualified local governmental unit or impairing the financial

soundness of an affected taxing unit.

     (2) The legislative body of the qualified local governmental

unit shall not approve an application for an obsolete property

exemption certificate unless the applicant complies with all of the

following requirements:

     (a) Except as otherwise provided in subsection (3), the

commencement of the rehabilitation of the facility does not occur

before the establishment of the obsolete property rehabilitation

district.

     (b) The application relates to a rehabilitation program that

when completed constitutes a rehabilitated facility within the

meaning of this act and that shall be situated within an obsolete

property rehabilitation district established in a qualified local

governmental unit eligible under this act to establish such a

district.

     (c) Completion of the rehabilitated facility is calculated to,

and will at the time of issuance of the certificate have the

reasonable likelihood to, increase commercial activity, create

employment, retain employment, prevent a loss of employment,

revitalize urban areas, or increase the number of residents in the

community in which the facility is situated.

     (d) The applicant states, in writing, that the rehabilitation

of the facility would not be undertaken without the applicant's

receipt of the exemption certificate.

     (e) The applicant is not delinquent in the payment of any

taxes related to the facility.

     (3) The legislative body of a qualified local governmental

unit may approve an application for an obsolete property exemption

certificate if the commencement of the rehabilitation of the

facility occurs before the establishment of the obsolete property

rehabilitation district and if 1 or more of the following are met:

     (a) All of the following are met:

     (i) The building permit for the rehabilitation of the facility

was obtained in October 2002.

     (ii) The obsolete property rehabilitation district was created

in April 2002.

     (iii) The rehabilitation of the facility included adding

additional stories to the facility.

     (b) All of the following are met:

     (i) Emergency or temporary repairs or improvements were made

before the establishment of the obsolete property rehabilitation

district.

     (ii) The obsolete property rehabilitation district was created

in January 2006.

     (iii) The facility is located in a city with a population of

more than 20,500 and less than 27,000 and is located in a county

with a population of more than 95,000 and less than 105,000.

     (c) All of the following are met:

     (i) Roof repairs or improvements were completed in March 2006

before the establishment of the obsolete property rehabilitation

district.

     (ii) The obsolete property rehabilitation district was created

in April 2006.

     (iii) The application was submitted to the qualified local

governmental unit in April 2006.

     (iv) The facility is located in a city with a population of

more than 10,800 and less than 11,100 and is located in a county

with a population of more than 39,000 and less than 42,000.

     (d) All of the following are met:

     (i) The building permit for the rehabilitation of the facility

was obtained in September 2010.

     (ii) The obsolete property rehabilitation district was created

in October 2012.

     (iii) The rehabilitation of the facility included renovation of

the entire interior building structure and mold removal.

     (e) All of the following are met:

     (i) Roof repairs or improvements began before the establishment

of the obsolete property rehabilitation district.

     (ii) The application for the facility was submitted to the

qualified local governmental unit in January 2010.

     (iii) The qualified local governmental unit established the

district in June 2010 and approved the certificate in October 2010.

     (iv) The facility is located in a city with a population of

more than 600,000 and is located in a county with a population of

more than 1,800,000, according to the most recent decennial census.

     (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 (3)(a), and (b), and (c), the effective

date of the certificate shall be December 31, 2006.

     (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 (3)(c), (3)(d), the effective date of the

certificate shall be December 31, 2006.2011.

     (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 (3)(e), the effective date of the

certificate shall be December 31, 2010.