EXEMPTION FOR PROPERTY OWNED

BY NONPROFIT HOUSING CORPORATION

House Bill 5672

Sponsor:  Rep. Joe Hune

Committee:  Local Government and Urban Policy

Complete to 5-10-04

A SUMMARY OF HOUSE BILL 5672 AS INTRODUCED 3-23-04

The bill would amend the General Property Tax Act to provide a property tax exemption for property owned by a nonprofit housing organization when the organization meets certain criteria.

(Generally speaking, the act currently provides an exemption for real and personal property “owned and occupied” by a nonprofit charitable institution, and it contains specific exemptions for certain kinds of housing, such as parsonages.)

Under the bill, real or personal property owned by a nonprofit housing corporation would be exempt from the collection of taxes under the General Property Tax Act, if the corporation satisfied all of the following conditions:

·                    it was qualified under section 501(c)(3) of the Internal Revenue Code;

·                    it was organized for the purpose of developing, owning, and operating affordable or supportive housing programs for the benefit of the public generally;

·                    it received funding assistance from the United States Department of Housing and Urban Development, or under the State Housing Development Authority Act of 1966; and,

·                    it was licensed under the Charitable Organizations and Solicitations Act.

            MCL 211.7o

                                                                                           Legislative Analyst:  J. Hunault     

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.