HOUSE BILL No. 5202

 

September 21, 2005, Introduced by Reps. Tobocman, Kathleen Law, Hopgood, Bieda, Clemente, Kolb, Lipsey, Murphy, Cheeks and Lemmons, III and referred to the Committee on Local Government and Urban Policy.

 

     A bill to amend 2002 PA 27, entitled

 

"An act to establish procedures for municipalities to designate

individual lots or structures as blighting; to purchase or condemn

blighting property; to transfer blighting property for development;

and to repeal acts and parts of acts,"

 

by amending sections 2 and 4 (MCL 125.2802 and 125.2804), section 2

 

as amended by 2003 PA 129.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Attractive nuisance" means a condition on property that

 

children are reasonably likely to come in contact with or be

 

exposed to and that involves an unreasonable risk of death or

 

serious bodily harm to children.

 

     (b) "Blighting property", subject to subdivision (c), means

 


property that is likely to have a negative financial impact on the

 

value of surrounding property or on the increase in value of

 

surrounding property and that meets any of the following criteria:

 

     (i) The property has been declared a public nuisance in

 

accordance with a local housing, building, plumbing, fire, or other

 

related code or ordinance.

 

     (ii) The property is an attractive nuisance because of physical

 

condition, use, or occupancy. A structure or lot is not blighting

 

property under this subparagraph because of an activity that is

 

inherent to the functioning of a lawful business.

 

     (iii) The property is a fire hazard or is otherwise dangerous to

 

the safety of persons or property.

 

     (iv) The property has had the utilities, plumbing, heating, or

 

sewerage permanently disconnected, destroyed, removed, or rendered

 

ineffective so that the property is unfit for its intended use.

 

     (v) A portion of a building or structure located on the

 

property has been damaged by any event so that the structural

 

strength or stability of the building or structure is appreciably

 

less than it was before the event and does not meet the minimum

 

requirements of the housing law of Michigan, 1917 PA 167, MCL

 

125.401 to 125.543, or a building code of the city, village, or

 

township in which the building or structure is located for a new

 

building or structure.

 

     (vi) A building or structure or part of a building or structure

 

located on the property is likely to fall, become detached or

 

dislodged, or collapse and injure persons or damage property.

 

     (vii) A building or structure located on the property used or

 


intended to be used as a dwelling or for industrial use, including

 

the adjoining grounds, because of dilapidation, decay, damage, or

 

faulty construction; accumulation of trash or debris; an

 

infestation of rodents or other vermin; or any other reason, is

 

unsanitary or unfit for human habitation, is in a condition that a

 

local health officer determines is likely to cause sickness or

 

disease, or is likely to injure the health, safety, or general

 

welfare of people living in the dwelling.

 

     (c) "Blighting property" does not include any of the

 

following:

 

     (i) Structures or lots, whether improved or unimproved, that

 

are inherent to the functioning of a farm or farm operation as

 

those terms are defined in section 2 of the Michigan right to farm

 

act, 1981 PA 93, MCL 286.472.

 

      (ii) Structures or lots, whether improved or unimproved, that

 

are industrial properties in an area zoned industrial and that are

 

current on tax obligations.

 

     (ii)  (iii)  Track belonging to a railroad company, right-of-way

 

belonging to a railroad company, rolling stock belonging to a

 

railroad company, or any other property necessarily used in

 

operating a railroad in this state belonging to a railroad company.

 

     (iii)  (iv)  A single family dwelling for which the owner claims

 

an exemption under section 7cc of the general property tax act,

 

1893 PA 206, MCL 211.7cc.

 

     (d) "Dwelling" means any house, building, structure, tent,

 

shelter, trailer, or vehicle, or portion thereof, which is occupied

 

in whole or in part as the home, residence, or living or sleeping

 


place of 1 or more human beings, either permanently or transiently.

 

Dwelling does not include railroad rolling stock on tracks or

 

rights-of-way.

 

     (e) "Fire hazard" means that term as defined in section 1 of

 

the fire prevention code, 1941 PA 207, MCL 29.1.

 

     (f) "Municipality" means a city, village, or township in this

 

state or a county described in section 3(1)(b).

 

     (g) "Person" means an individual, partnership, association,

 

trust, or corporation, or any other legal entity.

 

     (h) "Public nuisance" means an unreasonable interference with

 

a common right enjoyed by the general public involving conduct that

 

significantly interferes, or that is known or should have been

 

known to significantly interfere, with the public's health, safety,

 

peace, comfort, or convenience, including conduct prescribed by

 

law.

 

     (i) "Taxing jurisdiction" means a jurisdiction, including, but

 

not limited to, this state, an agency of this state, a state

 

authority, an intergovernmental authority of this state, a school

 

district, or a municipality, that levies taxes under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157.

 

     Sec. 4. (1) A municipality that proposes to designate a

 

property as blighting property under section 3 shall hold a hearing

 

on the designation. The hearing shall take place not less than 42

 

days, and not more than 119 days, after the municipality provides

 

written notice of the hearing and the proposed designation as

 

required by this section. A municipality may hold the hearing more

 

than 119 days after it provides written notice only if an extension

 


is requested by a person with a legal interest in the property that

 

is contesting the blighting designation.

 

     (2) The written notice provided under this section shall

 

explain, in plain English, that the property is subject to

 

designation as blighting property, and shall include all of the

 

following:

 

     (a) The time, date, and location of the hearing.

 

     (b) A description, including the street address, of the

 

property subject to designation as blighting property.

 

     (c) An explanation of the reasons the municipality considers

 

the property to be blighting property.

 

     (d) The name, address, and telephone number of the person to

 

whom communications about the hearing may be addressed.

 

     (e) Names, addresses, and telephone numbers of public and

 

private agencies or other resources that may be available to assist

 

an occupant of the property to avoid the designation of the

 

property as blighting property or, if the property is a dwelling,

 

to obtain comparable safe, decent, and quality affordable housing.

 

     (f) A description of the improvements that should be made to

 

the property before the hearing to avoid designation of the

 

property as blighting.

 

     (3) The municipality shall perform a thorough title search to

 

identify all persons with a legal interest in the property. The

 

municipality shall take the following steps to provide notice to

 

any person with a legal interest in the property:

 

     (a) Determine the address reasonably calculated to apprise

 

those persons with a legal interest in the property of the pendency

 


of the hearing under this section and send notice of the hearing to

 

each person with a legal interest in the property by certified

 

mail, return receipt requested, not less than 42 days before the

 

hearing.

 

     (b) Send a representative to the property to ascertain

 

personally whether or not the property is occupied. If the property

 

appears to be occupied, the municipality shall do all of the

 

following not less than 42 days before the hearing:

 

     (i) Make reasonable efforts in good faith personally to serve

 

upon a person occupying the property a copy of the written notice

 

described in subsection (2).

 

     (ii) If a person occupying the property is personally served,

 

orally inform the occupant of both of the following:

 

     (A) That the property may be designated as blighting property.

 

     (B) Public and private agencies or other resources that may be

 

available to assist the occupant to avoid the designation of the

 

property as blighting property or, if the property is a dwelling,

 

to obtain comparable safe, decent, and quality affordable housing.

 

     (iii) If the property is a dwelling and the occupant indicates

 

that he or she has a health problem that affects his or her ability

 

to make improvements that will cause the property no longer to meet

 

the definition of blighting property or if it should be apparent to

 

the representative of the municipality that the occupant has such a

 

health problem, place the occupant with an appropriate public or

 

private agency to assist the occupant to avoid the designation of

 

the property as blighting property.

 

     (iv) If the occupant appears to lack the ability to understand

 


the advice given or is unwilling to cooperate, provide the occupant

 

with the names and telephone numbers of public and private agencies

 

that may be able to assist the occupant.

 

     (v) If an authorized representative of the municipality is not

 

able personally to meet with the occupant, place the written notice

 

at a conspicuous location on the property.

 

     (c) Correct any deficiency that the municipality may know of

 

in the provision of the notice required by this section as soon as

 

practicable before designating the property as blighting property.

 

     (d) If the municipality is unable to ascertain the address

 

reasonably calculated to apprise all persons with a legal interest

 

in the property of the pendency of the hearing, or is unable to

 

deliver notice to any occupant of the property, service of the

 

notice shall be made by publication. The notice shall be published

 

for 3 successive weeks, once each week, in a newspaper published

 

and circulated in the county in which the property is located, if

 

there is one. If no paper is published in that county, publication

 

shall be made in a newspaper published and circulated in an

 

adjoining county.

 

     (4) Any notice provided under this section shall include an

 

explanation of any tax benefits or other incentives offered by the

 

municipality that may encourage the transfer of the blighting

 

property.

 

     Enacting section 1.  This amendatory act takes effect January

 

1, 2006.