Tri-City Sun

State Representatives Bill G. Schuette and Mike Hoadley presented their plan to provide financial relief for low-income seniors and permanently disabled individuals in Michigan. Their proposal aims to assist these groups in staying in their homes while ensuring necessary improvements are funded.

"This would be an important protection for low-income seniors and disabled individuals from the costly financial burden of special assessments," stated Schuette. He emphasized that these unexpected assessments pose challenges for those with limited income, highlighting the need for legislative relief.

The proposed House Bills 4079-80 seek to reinstate Michigan's Special Assessment District Tax Deferral program. This program targets individuals aged 65 or older, or those who are permanently disabled, with incomes of $34,900 or less. The legislation intends to alleviate financial burdens on vulnerable populations across Mid-Michigan facing special assessments on their properties.

Special assessments are additional charges separate from property taxes, imposed by local authorities for repairs or improvements without a vote from property owners. Schuette and Hoadley's initiative is particularly relevant for residents of Midland and Gladwin counties, who were impacted by disaster-related costs following dam failures.

"Our region experienced one of the worst ecological events in the history of our state," said Hoadley during his testimony before the House Finance Committee. He referred to catastrophic dam failures and flooding in May 2020 that caused approximately $175 million in damages. "The incompetence of certain entities resulted in a special assessment," he added, noting that homeowners face significant financial burdens due to these unforeseen events.

Schuette recalled that the deferral program had been active for over four decades before its suspension in October 2020. "This policy was eliminated because it was seldom used," he noted, pointing out how its absence became evident after recent disasters affected communities like Midland and Gladwin counties.

Under this legislation, the state would assume responsibility for special assessment taxes until a property is sold or transferred ownership.

The bills are currently under review by the House Finance Committee.