HB 6181 Summary

• Creates the delinquent special assessment revolving loan fund within the state treasury administered by the Department of Treasury.

• Establishes eligibility for cities, villages, townships, and counties that issued bonds for infrastructure improvements and cannot make bond payments due to delinquent special assessments of 6 months or more.

• Limits loans to one year's bond payment with repayment periods not exceeding 5 years after bond expiration, with interest rates set by the Department of Treasury at rates necessary to keep the fund actuarially sound.

• Requires borrowing municipalities to mandate that all properties connecting to the infrastructure improvements pay all delinquent and future special assessment payments as a condition of receiving a loan.

• Appropriates $5,000,000 from the general fund to establish the loan fund, with loan applications processed on a first-come, first-served basis with 30-day review periods.