SB 362 Summary

• Establishes the Attainable Housing Facilities Act, allowing cities, villages, and townships to create attainable housing districts where residential properties renting to income-qualified households (120% or less of county median income) at no more than 30% of household income are exempt from ad valorem property taxes.

• Qualified facilities (new construction or rehabilitated properties with at least $5,000 investment) receive exemption certificates valid for 1-12 years (extendable to 15 years maximum) if applicants meet requirements including site plans, income certifications, and reserving at least 30% of units for income-qualified households.

• Owners of exempt qualified facilities must pay a specific tax equal to one-half the average commercial/industrial property tax rate on the facility's taxable value (excluding land), with revenues distributed to state, counties, school districts, and authorities like regular property taxes.

• District establishment requires local legislative body resolution, property owner approval (50% of taxable value), public hearing notice, and finding of housing need; applications processed within 60 business days locally and 120 days by state tax commission.

• Exemptions expire December 31, 2027, but existing certificates remain valid through their expiration dates; certificates can be revoked for non-completion or non-compliance and reinstated or transferred to subsequent owners with local and state approval.