HB 5552 Summary

• Amends the Downtown Development Authority Act (1975 PA 197) to add and clarify definitions related to downtown development authorities, tax increment financing, and municipal obligations.

• Expands the definition of "qualified refunding obligation" to include obligations issued before December 31, 2012, to refund eligible obligations or other protected obligations, with specific conditions regarding net present value calculations and tax increment revenue sufficiency.

• Allows authorities in cities with population of 750,000 or more to use up to $8,000,000 in tax increment revenues (including state education taxes) for demolition of buildings or structures that commence in 2005.

• Establishes that certain refunding obligations issued before January 1, 2010, are exempt from municipal finance act requirements and permits extending the development program duration to one year after the final maturity date of qualified refunding obligations.

• Defines "qualified township" as townships that were ineligible to create authorities before January 3, 2005, adjoin a municipality with an existing authority, and share membership in a joint planning commission.