MI HB5333

Local tax collecting units may adopt a resolution before December 31, 2012 to exempt eligible nonprofit housing property from property tax collection, subject to a hearing with the assessor and affected taxing units.

Properties receiving a local exemption under subsection (1) are tax-exempt for 2 years until the property is occupied by a low-income person under lease or ownership is transferred, whichever occurs first.

Beginning December 31, 2012, eligible nonprofit housing property owned by charitable nonprofit housing organizations automatically becomes exempt from property taxes for 5 years, until occupancy by a low-income person or ownership transfer, whichever is first.

The automatic 5-year exemption under subsection (3) is reduced by the number of years the property was exempt under the local exemption option.

"Eligible nonprofit housing property" includes residential building lots, single-family dwellings, or duplexes owned by charitable nonprofits and intended for transfer to low-income persons earning not more than 80% of statewide median gross income for use as their principal residence.