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SENATE BILL NO. 1053
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending section 3 (MCL 207.773), as amended by 2022 PA 238.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) The governing body of a local governmental unit by 1
resolution may designate 1 or more neighborhood enterprise zones 2
within that local governmental unit. Except as otherwise provided 3
in this subsection, a neighborhood enterprise zone shall must 4
contain not less than 10 platted parcels of land. A neighborhood 5
enterprise zone located in a qualified downtown revitalization 6
June 18, 2026, Introduced by Senators CAVANAGH, MCMORROW, CHANG and SANTANA
and referred to Committee on Finance, Insurance, and Consumer Protection.
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district may contain less than 10 platted parcels if the platted 1
parcels together contain 10 or more facilities. All the land within 2
a neighborhood enterprise zone shall must also be compact and 3
contiguous. Contiguity is not broken by a road, right-of-way, or 4
property purchased or taken under condemnation if the purchased or 5
condemned property was a single parcel prior to before the sale or 6
condemnation. 7
(2) The total acreage of the neighborhood enterprise zones 8
containing only new facilities or rehabilitated facilities, or any 9
a combination of new facilities or and rehabilitated facilities, 10
designated under this act shall must not exceed 15% 20% of the 11
total acreage contained within the boundaries of the local 12
governmental unit. The total acreage of the neighborhood enterprise 13
zones containing only homestead facilities designated under this 14
act shall must not exceed 10% of the total acreage contained within 15
the boundaries of the local governmental unit or, with the approval 16
of the board of commissioners of the county in which the 17
neighborhood enterprise zone is located if the county does not have 18
an elected or appointed county executive or with the approval of 19
the board of commissioners and the county executive of the county 20
in which the neighborhood enterprise zone is located if the county 21
has an elected or appointed county executive, 15% 20% of the total 22
acreage contained within the boundaries of the local governmental 23
unit. 24
(3) Not less than 60 days before the passage of a resolution 25
designating a neighborhood enterprise zone or the repeal or 26
amendment of a resolution under subsection (5), the clerk of the 27
local governmental unit shall give written notice to the assessor 28
and to the governing body of each taxing unit that levies ad 29
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valorem property taxes in the proposed neighborhood enterprise 1
zone. Before acting upon on the resolution, the governing body of 2
the local governmental unit shall make a finding that a proposed 3
neighborhood enterprise zone is consistent with the master plan of 4
the local governmental unit and the neighborhood preservation and 5
economic development goals of the local governmental unit. The 6
governing body before acting upon on the resolution shall also 7
adopt a statement of the local governmental unit's goals, 8
objectives, and policies relative to the maintenance, preservation, 9
improvement, and development of housing for all persons regardless 10
of income level living within the proposed neighborhood enterprise 11
zone. Additionally, before acting upon on the resolution, the 12
governing body of a local governmental unit with a population 13
greater than 20,000 shall pass a housing inspection ordinance. A 14
local governmental unit with a population of 20,000 or less may 15
pass a housing inspection ordinance. Before the sale of a unit in a 16
new or rehabilitated facility for which a neighborhood enterprise 17
zone certificate is in effect, an inspection shall must be made of 18
the unit to determine compliance with any local construction or 19
safety codes and that a sale may not be finalized until there is 20
compliance with those local construction or safety codes. The 21
governing body shall hold a public hearing not later than 45 days 22
after the date the notice is sent but before acting upon on the 23
resolution. 24
(4) Upon On receipt of a notice under subsection (3), the 25
assessor shall determine and furnish to the governing body of the 26
local governmental unit the amount of the true cash value of the 27
property located within the proposed neighborhood enterprise zone 28
and any other information considered necessary by the governing 29
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body. 1
(5) A resolution designating a neighborhood enterprise zone, 2
other than a zone designated under subsection (2), may be repealed 3
or amended not sooner than 3 years after the date of adoption or of 4
the most recent amendment of the resolution by the governing body 5
of the local governmental unit. The repeal or amendment of the 6
resolution shall take takes effect 6 months after adoption. 7
However, an action taken under this subsection does not invalidate 8
a certificate that is issued or in effect and a facility for which 9
a certificate is issued or in effect shall continue continues to be 10
included in the total acreage limitations under this section until 11
the certificate is expired or revoked. 12
(6) A resolution designating a neighborhood enterprise zone in 13
an obsolete property rehabilitation district that was created by a 14
local unit of government on June 6, 2003, and for which the state 15
tax commission issued obsolete property rehabilitation certificates 16
on August 26, 2003, and September 24, 2003 will cause any previous 17
certificate to expire on the December 30 immediately preceding the 18
December 31 on which the first neighborhood enterprise zone 19
certificate is effective. The taxable value of the parcel shall 20
must be calculated using the value of the parcel before the 21
building permit was issued. This subdivision subsection authorizes 22
an amended obsolete property rehabilitation certificate approved by 23
the state tax commission for the portion of the parcel contained in 24
the original certificate for which an application for a 25
neighborhood enterprise zone certificate was not submitted. 26
(7) Beginning June 1, 2023, in addition to all other 27
requirements under this act, both of the following apply in a city, 28
township, or village that became a local governmental unit pursuant 29
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to the amendatory act that added this subsection:2022 PA 238: 1
(a) A local governmental unit may designate a neighborhood 2
enterprise zone only if the local governmental unit determines that 3
both of the following are met: 4
(i) The designation encourages compact development and the 5
neighborhood enterprise zone contains 5 or more existing 6
residential units per acre at the time of designation. 7
(ii) The neighborhood enterprise zone is adjacent to existing 8
development, can utilize existing infrastructure, and has access to 9
municipal water and sewer services on at least 1 frontage. 10
(b) Notwithstanding section 9, for that part of a facility 11
that in the prior year was occupied by an individual, couple, 12
family, or group of unrelated individuals with a combined adjusted 13
household income in excess of 120% of the countywide area median 14
income as posted by the Michigan state housing development 15
authority on its website, the specific tax paid in lieu of taxes 16
for the year must be equal to the full amount of the taxes that 17
would be paid on that portion of the facility if the facility were 18
not tax exempt. 19
(8) As used in this section, "adjusted household income" means 20
that term as defined in R 125.101 of the Michigan Administrative 21
Code. 22