HB-5398, As Passed Senate, December 18, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5398

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

(MCL 211.1 to 211.155) by adding section 78r.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 78r. (1) A foreclosing governmental unit for a county

other than this state may acquire property owned by this state, the

federal government, or other governmental entity to facilitate the

sale of tax reverted property under section 78m with the consent of

this state, the federal government, or other governmental entity

that owns the property. Methods of acquisition may include, but are

not limited to, an exchange of property owned by the county for

property of approximately equal value that is owned by this state,

the federal government, or other governmental entity. For purposes

of this subsection, "governmental entity" includes an authority.

     (2) If the foreclosing governmental unit for a county is not

this state, an authority may, with the consent of the foreclosing

governmental unit, convey real property owned by the authority to

the foreclosing governmental unit as provided in section 7 of the

land bank fast track act, 2003 PA 258, MCL 124.757, including for

no monetary consideration.

     (3) The conveyance of property to a foreclosing governmental

unit under subsection (1) or (2), costs incurred by the foreclosing

governmental unit relating to that property, and a subsequent sale

or transfer of that property by the foreclosing governmental unit

shall be deemed to represent a fair exchange of value for value.

     (4) A party to a conveyance under subsection (1) or (2) shall

execute and record all documents necessary to effectuate the

conveyance, including, but not limited to, a quitclaim deed or

affidavit of jurisdictional transfer with the register of deeds in

the county in which the property is located.

     (5) Property acquired by a foreclosing governmental unit under

subsection (1) or (2) shall be offered for sale by the foreclosing

governmental unit at a property sale under section 78m(2) and may

be offered for sale as a group with 1 or more other parcels under

section 78m(2). Property acquired by a foreclosing governmental

unit under subsection (1) or (2) may not be conveyed or transferred

to a city, village, township, or county under section 78m(1) or

(3). Any net proceeds from the sale of property acquired by a

foreclosing governmental unit under subsection (1) or (2) shall be

deposited into the account designated under section 78m(8) as the

House Bill No. 5398 (H-4) as amended September 9, 2014

delinquent tax property sales proceeds for the year in which the

property is sold by the foreclosing governmental unit.

     (6) This section does not alter the powers, duties, functions,

or responsibilities of an authority under the land bank fast [tracK]

act, 2003 PA 258, MCL 124.751 TO 124.774.

     (7) As used in this section, "authority" means a land bank

fast track authority created under the land bank fast track act,

2003 PA 258, MCL 124.751 to 124.774.