HB-4028, As Passed Senate, Nov 19, 2002                                     

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                          SENATE SUBSTITUTE FOR                                 

                                                                                

                           HOUSE BILL NO. 4028                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill 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.                          

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  The powers granted in this act relating to the                     

                                                                                

2   designation and transfer for development of blighting property              

                                                                                

3   constitute the performance by this state or a political                     

                                                                                

4   subdivision of this state of essential public purposes and                  

                                                                                

5   functions.                                                                  

                                                                                

6       Sec. 2.  As used in this act:                                               

                                                                                

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

                                                                                

8   children are reasonably likely to come in contact with or be                

                                                                                

9   exposed to and that involves an unreasonable risk of death or               

                                                                                

10  serious bodily harm to children.                                            


                                                                                

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

                                                                                

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

                                                                                

3   the value of surrounding property or on the increase in value of            

                                                                                

4   surrounding property and that meets any of the following                    

                                                                                

5   criteria:                                                                   

                                                                                

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

                                                                                

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

                                                                                

8   other related code or ordinance.                                            

                                                                                

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

                                                                                

10  physical condition, use, or occupancy.  A structure or lot is not           

                                                                                

11  blighting property under this subparagraph because of an activity           

                                                                                

12  that is inherent to the functioning of a lawful business.                   

                                                                                

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

                                                                                

14  to the safety of persons or property.                                       

                                                                                

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

                                                                                

16  or sewerage permanently disconnected, destroyed, removed, or                

                                                                                

17  rendered ineffective so that the property is unfit for its                  

                                                                                

18  intended use.                                                               

                                                                                

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

                                                                                

20  property has been damaged by any event so that the structural               

                                                                                

21  strength or stability of the building or structure is appreciably           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  new building or structure.                                                  

                                                                                

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


                                                                                

1   structure located on the property is likely to fall, become                 

                                                                                

2   detached or dislodged, or collapse and injure persons or damage             

                                                                                

3   property.                                                                   

                                                                                

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

                                                                                

5   intended to be used as a dwelling, including the adjoining                  

                                                                                

6   grounds, because of dilapidation, decay, damage, or faulty                  

                                                                                

7   construction; accumulation of trash or debris; an infestation of            

                                                                                

8   rodents or other vermin; or any other reason, is unsanitary or              

                                                                                

9   unfit for human habitation, is in a condition that a local health           

                                                                                

10  officer determines is likely to cause sickness or disease, or is            

                                                                                

11  likely to injure the health, safety, or general welfare of people           

                                                                                

12  living in the dwelling.                                                     

                                                                                

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

                                                                                

14  following:                                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  farm act, 1981 PA 93, MCL 286.472.                                          

                                                                                

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

                                                                                

20  are industrial properties in an area zoned industrial and that              

                                                                                

21  are current on tax obligations.                                             

                                                                                

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

                                                                                

23  belonging to a railroad company, rolling stock belonging to a               

                                                                                

24  railroad company, or any other property necessarily used in                 

                                                                                

25  operating a railroad in this state belonging to a railroad                  

                                                                                

26  company.                                                                    

                                                                                

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


                                                                                

1   homestead exemption under section 7cc of the general property tax           

                                                                                

2   act, 1893 PA 206, MCL 211.7cc.                                              

                                                                                

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

                                                                                

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

                                                                                

5   occupied in whole or in part as the home, residence, or living or           

                                                                                

6   sleeping place of 1 or more human beings, either permanently or             

                                                                                

7   transiently.  Dwelling does not include railroad rolling stock on           

                                                                                

8   tracks or rights-of-way.                                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  trust, or corporation, or any other legal entity.                           

                                                                                

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

                                                                                

16  a common right enjoyed by the general public involving conduct              

                                                                                

17  that significantly interferes, or that is known or should have              

                                                                                

18  been known to significantly interfere, with the public's health,            

                                                                                

19  safety, peace, comfort, or convenience, including conduct                   

                                                                                

20  prescribed by law.                                                          

                                                                                

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

                                                                                

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

                                                                                

23  authority, an intergovernmental authority of this state, a school           

                                                                                

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

                                                                                

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

                                                                                

26      Sec. 3.  (1) Except as provided in subsection (3), a city,                  

                                                                                

27  village, or township may do 1 of the following:                             


                                                                                

1       (a) Designate a structure or lot within its jurisdiction as                 

                                                                                

2   blighting property and acquire title to the blighting property by           

                                                                                

3   purchase, gift, exchange, or condemnation under the procedures              

                                                                                

4   set forth in sections 4 through 7, except that a township may               

                                                                                

5   take these actions within a village only upon adoption by a                 

                                                                                

6   village of a resolution under subdivision (c).                              

                                                                                

7       (b) Upon entering into a written agreement with the county                  

                                                                                

8   within which the city, village, or township is located, adopt a             

                                                                                

9   resolution transferring the authority provided in subdivision (a)           

                                                                                

10  to that county.  The written agreement shall be entered into with           

                                                                                

11  the county executive of a county that elects a county executive             

                                                                                

12  or with the county board of commissioners of any other county.              

                                                                                

13      (c) In the case of a village, adopt a resolution transferring               

                                                                                

14  the authority provided in subdivision (a) to the township within            

                                                                                

15  which the village is located.                                               

                                                                                

16      (2) Except as provided in subsection (3), upon adoption by a                

                                                                                

17  city, village, or township of a resolution under                            

                                                                                

18  subsection (1)(b), a county may designate a structure or lot as             

                                                                                

19  blighting property and acquire fee simple title in the blighting            

                                                                                

20  property by purchase, gift, exchange, or condemnation under the             

                                                                                

21  procedures set forth in sections 4 through 7.                               

                                                                                

22      (3) A municipality shall not designate a property as                        

                                                                                

23  blighting property if the property has been forfeited to a county           

                                                                                

24  treasurer under section 78g of the general property tax act, 1893           

                                                                                

25  PA 206, MCL 211.78g, and remains subject to foreclosure under               

                                                                                

26  section 78k of the general property tax act, 1893 PA 206,                   

                                                                                

27  MCL 211.78k.                                                                


    House Bill No. 4028 as amended November 20, 2002                            

1       (4) A municipality shall not designate a property as                        

                                                                                

2   blighting property based solely on the presence of native grasses           

                                                                                

3   or plants indigenous to Michigan that are planted or maintained             

                                                                                

4   as part of a garden or designated wildlife area or for                      

                                                                                

5   landscaping, erosion control, or weed control purposes.                     

                                                                                

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

                                                                                

7   property as blighting property under section 3 shall hold a                 

                                                                                

8   hearing on the designation.  The hearing shall take place not               

                                                                                

9   less than <<42>> days, and not more than <<119>> days, after the           

                                                                                

10  municipality provides written notice of the hearing and the                 

                                                                                

11  proposed designation as required by this section.  A municipality           

                                                                                

12  may hold the hearing more than <<119>> days after it provides written      

                                                                                

13  notice only if an extension is requested by a person with a legal           

                                                                                

14  interest in the property that is contesting the blighting                   

                                                                                

15  designation.                                                                

                                                                                

16      (2) The written notice provided under this section shall                    

                                                                                

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

                                                                                

18  designation as blighting property, and shall include all of the             

                                                                                

19  following:                                                                  

                                                                                

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

                                                                                

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

                                                                                

22  property subject to designation as blighting property.                      

                                                                                

23      (c) An explanation of the reasons the municipality considers                

                                                                                

24  the property to be blighting property.                                      

                                                                                

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

                                                                                

26  whom communications about the hearing may be addressed.                     

                                                                                

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


                                                                                

1   private agencies or other resources that may be available to                

                                                                                

2   assist an occupant of the property to avoid the designation of              

                                                                                

3   the property as blighting property or to obtain comparable safe,            

                                                                                

4   decent, and quality affordable housing.                                     

                                                                                

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

                                                                                

6   the property before the hearing to avoid designation of the                 

                                                                                

7   property as blighting.                                                      

                                                                                

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

                                                                                

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

                                                                                

10  municipality shall take the following steps to provide notice to            

                                                                                

11  any person with a legal interest in the property:                           

                                                                                

12      (a) Determine the address reasonably calculated to apprise                  

                                                                                

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

                                                                                

14  pendency of the hearing under this section and send notice of the           

                                                                                

15  hearing to each person with a legal interest in the property by             

                                                                                

16  certified mail, return receipt requested, not less than 42 days             

                                                                                

17  before the hearing.                                                         

                                                                                

18      (b) Send a representative to the property to ascertain                      

                                                                                

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

                                                                                

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

                                                                                

21  the following not less than 42 days before the hearing:                     

                                                                                

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

                                                                                

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

                                                                                

24  described in subsection (2).                                                

                                                                                

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

                                                                                

26  orally inform the occupant of both of the following:                        

                                                                                

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


    House Bill No. 4028 as amended November 20, 2002                            

1   property.                                                                   

                                                                                

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

                                                                                

3   be available to assist the occupant to avoid the designation of             

                                                                                

4   the property as blighting property or to obtain comparable safe,            

                                                                                

5   decent, and quality affordable housing.                                     

                                                                                

6       (iii) If the occupant indicates that he or she has a health                  

                                                                                

7   problem that affects his or her ability to make improvements that           

                                                                                

8   will cause the property no longer to meet the definition of                 

                                                                                

9   blighting property or if it should be apparent to the                       

                                                                                

10  representative of the municipality that the occupant has such a             

                                                                                

11  health problem, place the occupant with an appropriate public or            

                                                                                

12  private agency to assist the occupant with that health problem.             

                                                                                

13      (iv) If the occupant << to avoid the designation of the property as blighting property. appears to lack the ability to                                       

                                                                                

14  understand the advice given or is unwilling to cooperate, provide           

                                                                                

15  the occupant with the names and telephone numbers of public and             

                                                                                

16  private agencies that may be able to assist the occupant. >>                

                                                                                

17      (v) If an authorized representative of the municipality is                  

                                                                                

18  not able personally to meet with the occupant, place the written            

                                                                                

19  notice at a conspicuous location on the property.                           

                                                                                

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

                                                                                

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

                                                                                

22  as practicable before designating the property as blighting                 

                                                                                

23  property.                                                                   

                                                                                

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

                                                                                

25  reasonably calculated to apprise all persons with a legal                   

                                                                                

26  interest in the property of the pendency of the hearing, or is              

                                                                                

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


                                                                                

1   of the notice shall be made by publication.  The notice shall be            

                                                                                

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

                                                                                

3   published and circulated in the county in which the property is             

                                                                                

4   located, if there is one.  If no paper is published in that                 

                                                                                

5   county, publication shall be made in a newspaper published and              

                                                                                

6   circulated in an adjoining county.                                          

                                                                                

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

                                                                                

8   explanation of any tax benefits or other incentives offered by              

                                                                                

9   the municipality that may encourage the transfer of the blighting           

                                                                                

10  property.                                                                   

                                                                                

11      Sec. 5.  (1) Upon the mailing of the notice under section 4,                

                                                                                

12  the representative of the municipality responsible for the                  

                                                                                

13  mailing of the notice shall file proof of the notice provided               

                                                                                

14  with the register of deeds of the county within which the                   

                                                                                

15  property subject to designation as blighting property is                    

                                                                                

16  located.  The proof of notice shall be in the form of an                    

                                                                                

17  affidavit and shall include all of the following:                           

                                                                                

18      (a) A description of the content of the notice provided.                    

                                                                                

                                                                                

                                                                                

19      (b) The name or names of the person or persons to whom the                  

                                                                                

20  notice was addressed.                                                       

                                                                                

21      (c) A statement that the property is subject to designation                 

                                                                                

22  as blighting property and subsequent transfer or condemnation.              

                                                                                

23      (2) An affidavit recorded under subsection (1) creates a                    

                                                                                

24  rebuttable presumption in the courts of this state that any                 

                                                                                

25  person obtaining a legal interest in property subject to                    

                                                                                

26  designation as blighting property following the recording of the            


                                                                                

1   affidavit by the representative of the municipality was properly            

                                                                                

2   notified that the property was subject to designation as                    

                                                                                

3   blighting property and of the consequences of that designation,             

                                                                                

4   including, but not limited to, the condemnation of the property             

                                                                                

5   or the transfer of the property to the municipality or another              

                                                                                

6   person.                                                                     

                                                                                

7       (3) If a representative of a municipality records an                        

                                                                                

8   affidavit under subsection (1) and the municipality subsequently            

                                                                                

9   does not designate the property as blighting property, the                  

                                                                                

10  municipality shall record as soon as practicable notice properly            

                                                                                

11  certified by a representative of the municipality and in the form           

                                                                                

12  of an affidavit that the property was not designated as blighting           

                                                                                

13  property and that the municipality no longer seeks to designate             

                                                                                

14  the property as blighting property.                                         

                                                                                

15      Sec. 6.  (1) A person with a legal interest in the property                 

                                                                                

16  may contest the proposed designation of any property as blighting           

                                                                                

17  property at the hearing held by the municipality under section 4            

                                                                                

18  by doing 1 of the following:                                                

                                                                                

19      (a) Appear at the hearing and show cause why the property                   

                                                                                

20  should not be designated as blighting property.                             

                                                                                

21      (b) If incarcerated, impaired, or otherwise unable to attend                

                                                                                

22  a public hearing, submit a written presentation to show cause why           

                                                                                

23  the property should not be designated as blighting property.                

                                                                                

24      (2) If a person with a legal interest in the property                       

                                                                                

25  demonstrates at the hearing that improvements to the property               

                                                                                

26  have been made or are actively being made that will cause the               

                                                                                

27  property no longer to meet the definition of blighting property,            


    House Bill No. 4028 as amended November 20, 2002                            

1   the municipality shall delay the designation of the property as             

                                                                                

2   blighting for <<91>> days.  If at the end of that <<91>> days the          

                                                                                

3   municipality finds that the property no longer meets the                    

                                                                                

4   definition of blighting property, the municipality shall issue a            

                                                                                

5   certificate stating that the property is not blighting property.            

                                                                                

6       (3) If after the notice and hearing required by this act the                

                                                                                

7   municipality determines that the property is blighting property,            

                                                                                

8   the municipality shall designate the property as blighting                  

                                                                                

9   property and provide public notice of the designation.                      

                                                                                

10      (4) A municipality may at any time suspend proceedings                      

                                                                                

11  leading to the designation of property as blighting property if a           

                                                                                

12  person with a legal interest in the property enters into an                 

                                                                                

13  agreement with the municipality establishing an improvement plan            

                                                                                

14  for the property and a schedule for completion of the                       

                                                                                

15  improvements.                                                               

                                                                                

16      (5) A person with a legal interest in property that a                       

                                                                                

17  municipality has designated as blighting property may appeal that           

                                                                                

18  decision to the circuit court in the jurisdiction within which              

                                                                                

19  the property is located within 28 days of the designation.  The             

                                                                                

20  circuit court shall review the municipal decision using the                 

                                                                                

21  standard of review for administrative decisions that is set forth           

                                                                                

22  in section 28 of article VI of the state constitution of 1963.              

                                                                                

23      (6) If a person with a legal interest in a property that a                  

                                                                                

24  municipality designates as blighting appeals the municipal                  

                                                                                

25  decision and the decision is reversed by a court of appropriate             

                                                                                

26  jurisdiction and the court determines that the municipality was             

                                                                                

27  acting arbitrarily or in bad faith, the court may award the                 


    House Bill No. 4028 as amended on November 20, 2002                         

1   successful appellant the costs, including, but not limited to,              

                                                                                

2   attorney fees, actually and reasonably incurred by the person in            

                                                                                

3   making the appeal.                                                          

                                                                                

4       Sec. 7.  (1) A municipality may offer to purchase property                  

                                                                                

5   designated as blighting property under this act at the fair                 

                                                                                

6   market value or to acquire the property by donation or exchange.            

                                                                                

7   If the offer is rejected, the municipality may institute                    

                                                                                

8   proceedings under the power of eminent domain under the laws of             

                                                                                

9   this state or provisions of any local charter relative to                   

                                                                                

10  condemnation.                                                               

                                                                                

11      (2) Except as otherwise provided in subsection (3), within                  

                                                                                

12  <<119>> days after a municipality acquires title to a blighting            

                                                                                

13  property or a condemnation award for the blighting property is              

                                                                                

14  ordered under the uniform condemnation procedures act, 1980                 

                                                                                

15  PA 87, MCL 213.5 to 213.75, whichever is later, the municipality            

                                                                                

16  shall either transfer the property for development or have                  

                                                                                

17  adopted a written development plan for the property.                        

                                                                                

18      (3) A municipality that under subsection (2) transfers title                

                                                                                

19  to a blighting property that is classified as residential may               

                                                                                

20  transfer the property for affordable low income housing to a                

                                                                                

21  person that has experience with and is able to demonstrate                  

                                                                                

22  financial capacity developing affordable low income housing.  A             

                                                                                

23  municipality that does not transfer title to a blighting property           

                                                                                

24  that is classified as residential under subsection (2) shall                

                                                                                

25  develop the property in accordance with the written development             

                                                                                

26  plan adopted under subsection (2).                                          

                                                                                

27      (4) If a municipality fails to comply with subsection (2) or                


                                                                                

1   (3), a person whose legal interest in the property was conveyed             

                                                                                

2   by sale, donation, exchange, or condemnation as provided for                

                                                                                

3   under subsection (1) may bring an action in the circuit court to            

                                                                                

4   compel the municipality to convey that legal interest back to               

                                                                                

5   that person.  Upon a finding that the person bringing the action            

                                                                                

6   has a plan likely to result in the development of that property             

                                                                                

7   consistent with applicable law and that the municipality has not            

                                                                                

8   complied with subsection (2) or (3), the court shall enter an               

                                                                                

9   order restoring the person's legal interest in the property.  An            

                                                                                

10  order entered under this subsection shall require all of the                

                                                                                

11  following:                                                                  

                                                                                

12      (a) That all amounts paid in consideration for the property,                

                                                                                

13  including any taxes extinguished under section 8, be repaid and,            

                                                                                

14  if applicable, distributed to the appropriate taxing                        

                                                                                

15  jurisdiction.                                                               

                                                                                

16      (b) That all costs incurred by the municipality for                         

                                                                                

17  demolition, environmental response activities, title clearance,             

                                                                                

18  and site preparation be repaid.                                             

                                                                                

19      (c) That the court retain jurisdiction to determine if the                  

                                                                                

20  development plan presented by the petitioner is implemented.                

                                                                                

21      Sec. 8.  (1) To encourage the donation or transfer of                       

                                                                                

22  property designated as blighting property under this act, the               

                                                                                

23  municipality may accept from all persons with a legal interest in           

                                                                                

24  the blighting property a deed conveying those persons' interests            

                                                                                

25  in the blighting property in lieu of foreclosure of the blighting           

                                                                                

26  property for delinquent property taxes.  A municipality shall not           

                                                                                

27  offer or accept a deed in lieu of foreclosure if either of the              


    House Bill No. 4028 as amended November 20, 2002                            

1   following applies:                                                          

                                                                                

2       (a) The blighting property has been forfeited to a county                   

                                                                                

3   treasurer under section 78g of the general property tax act, 1893           

                                                                                

4   PA 206, MCL 211.78g, and remains subject to foreclosure under               

                                                                                

5   section 78k of the general property tax act, 1893 PA 206,                   

                                                                                

6   MCL 211.78k.                                                                

                                                                                

7       (b) The blighting property has been foreclosed under section                

                                                                                

8   78k of the general property tax act, 1893 PA 206, MCL 211.78k,              

                                                                                

9   and has not been transferred by the foreclosing governmental unit           

                                                                                

10  under section 78m of the general property tax act, 1893 PA 206,             

                                                                                

11  MCL 211.78m.                                                                

                                                                                

12      (2) If, under subsection (1), the municipality accepts a deed               

                                                                                

13  in lieu of foreclosure, all of the following shall occur:                   

                                                                                

14      (a) Any unpaid taxes levied under the general property tax                  

                                                                                

15  act, 1893 PA 206, MCL 211.1 to 211.157, are extinguished.                   

                                                                                

16      (b) All liens against the property, except future                           

                                                                                

17  installments of special assessments and liens recorded by this              

                                                                                

18  state pursuant to the natural resources and environmental                   

                                                                                

19  protection act, 1994 PA 451, MCL 324.101 to 324.90106, are                  

                                                                                

20  extinguished.                                                               

                                                                                

21      (c) All existing recorded and unrecorded interests in that                  

                                                                                

22  property are extinguished, except a visible or recorded easement            

                                                                                

23  or right-of-way, private deed restriction, or restriction imposed           

                                                                                

24  under the natural resources and environmental protection act,               

                                                                                

25  1994 PA 451, MCL 324.101 to 324.90106.                                      

                                                                                

26      (3) Not less than <<28>> days prior to acceptance of a deed in             

                                                                                

27  lieu of foreclosure under this section, a municipality shall                


                                                                                

1   inform each taxing jurisdiction that has levied taxes on the                

                                                                                

2   blighting property under the general property tax act, 1893                 

                                                                                

3   PA 206, MCL 211.1 to 211.157.  Each taxing jurisdiction shall be            

                                                                                

4   afforded the opportunity to inform the municipality of the                  

                                                                                

5   revenue impact of the issuance of a deed in lieu of foreclosure             

                                                                                

6   and to show cause why the municipality should not accept a deed             

                                                                                

7   in lieu of foreclosure.                                                     

                                                                                

8       (4) A municipality shall record any deed in lieu of                         

                                                                                

9   foreclosure in the office of the register of deeds in the county            

                                                                                

10  within which the property is located and pay any applicable                 

                                                                                

11  recording costs.                                                            

                                                                                

12      (5) A municipality shall forward a copy of a deed in lieu of                

                                                                                

13  foreclosure recorded under subsection (4) to the treasurer of the           

                                                                                

14  city, village, or township, and to the treasurer of the county,             

                                                                                

15  within which the property is located.                                       

                                                                                

16      (6) To encourage the donation or transfer of blighting                      

                                                                                

17  property, a municipality may forgive fines levied by the                    

                                                                                

18  municipality against the property or fines relating to the                  

                                                                                

19  property levied against a person with a legal interest in the               

                                                                                

20  property.                                                                   

                                                                                

21      Sec. 9.  (1) For reasonable and valuable consideration, a                   

                                                                                

22  municipality may transfer for development property designated as            

                                                                                

23  blighting property and acquired under this act.  A municipality             

                                                                                

24  may transfer the blighting property after the transferee presents           

                                                                                

25  all of the following:                                                       

                                                                                

26      (a) A development plan for the property.                                    

                                                                                

27      (b) Guarantees of the transferee's financial ability to                     


                                                                                

1   implement the development plan for the blighting property.                  

                                                                                

2       (2) If property obtained by a municipality under this act is                

                                                                                

3   subsequently sold by the municipality for an amount in excess of            

                                                                                

4   any costs incurred by the municipality relating to demolition,              

                                                                                

5   renovation, improvements, or infrastructure development, the                

                                                                                

6   excess amount shall be returned on a pro rata basis to any taxing           

                                                                                

7   jurisdiction affected by the extinguishment of taxes under                  

                                                                                

8   section 8 as a result of the designation of the property as                 

                                                                                

9   blighting property to the extent necessary to offset the                    

                                                                                

10  extinguishment of taxes under section 8.  Upon the request of any           

                                                                                

11  taxing jurisdiction in which the blighting property is located,             

                                                                                

12  the municipality shall provide to the requesting taxing                     

                                                                                

13  jurisdiction cost information regarding any subsequent sale or              

                                                                                

14  transfer by the municipality of the blighting property.                     

                                                                                

15      Sec. 10.  The powers granted in this act are in addition to                 

                                                                                

16  powers granted to municipalities under the statutes and local               

                                                                                

17  charters.  Nothing contained in this act shall be construed to              

                                                                                

18  amend or repeal any of the provisions of 1933 (Ex Sess) PA 18,              

                                                                                

19  MCL 125.651 to 125.709c, or of 1945 PA 344, MCL 125.71 to                   

                                                                                

20  125.84.                                                                     

                                                                                

21      Enacting section 1.  This act is repealed 5 years after the                 

                                                                                

22  effective date of this act.