HB 6251 Summary

• Amends the Downtown Development Authority Act (1975 PA 197) to modify definitions and eligibility requirements for tax increment financing and qualified refunding obligations.

• Allows qualified refunding obligations issued to refund capital appreciation bonds delivered to the Michigan Municipal Bond Authority on December 21, 1994, to be payable through 2025 and exempts them from certain revised municipal finance act requirements if issued before January 1, 2012.

• Extends the duration of development programs for certain qualified refunding obligations to one year after the final maturity date of the refunding bonds, with annual revenues capped at $750,000.

• Clarifies definitions of "eligible advance," "eligible obligation," "other protected obligation," and "qualified refunding obligation" to specify applicable dates and conditions for tax increment financing purposes.

• Establishes requirements for "qualified township" status to allow townships that adjoin municipalities with existing authorities to create authorities under certain conditions.