State Reps. Bill G. Schuette and Mike Hoadley today testified on their plans to help low-income seniors and permanently disabled individuals across the state stay in their homes while needed improvements that benefit their areas are still funded.

“This would be an important protection for low-income seniors and disabled individuals from the costly financial burden of special assessments,” Schuette said. “These assessments are usually unexpected, and we’re talking about a group of people who have a difficult time acquiring additional income to cover sudden charges. We’ve heard from a number of constituents in both of our districts for whom this legislation would provide much needed relief.”

House Bills 4079-80 will re-establish Michigan’s Special Assessment District Tax Deferral program for individuals 65 years and older, or those who are permanently disabled, with incomes of $34,900 or less. The legislation will reduce the financial burden for vulnerable groups across Mid-Michigan who would struggle to pay for special assessments on their homesteads.

An assessment is an add-on separate from property tax for repairs or improvements when needed. Unlike a millage, assessments are not voted on by property owners. They are simply assessed and put on the tax rolls by a local governing entity. Schuette and Hoadley’s plans would be extremely helpful for many impacted individuals in Midland and Gladwin counties after they experienced disaster and have been tasked with funding repairs for collapsed dams in their communities.

“Our region experienced one of the worst ecological events in the history of our state,” said Hoadley in testimony before the House Finance Committee, referencing catastrophic structural dam failures and ensuing flooding in May 2020 that caused roughly $175 million in damages to over 2,000 structures across the area. “The incompetence of certain entities resulted in a special assessment, and homeowners in areas we represent have been tasked with paying for damages they were not at fault for. I represent people who will lose their homes because of these high assessment price tags, and these bills will provide them with needed relief and a practical way forward.”

Schuette noted in testimony that the deferral program had been law in Michigan for over 40 years before being suspended in October of 2020.

“This policy was eliminated because it was seldom used, but sometimes you don’t know how good something was until it’s gone,” Schuette said. “This was eliminated and then we saw the dam failures and floods that impacted our communities literally months later. It was Midland and Gladwin counties back then, but this is something that could happen anywhere. Having a policy on the books that protects low-income seniors and helps keep them in their homes in unexpected times of disaster is good, sound policy for our state.”

Under this legislation, the state would cover the costs of special assessment taxes up until the property is sold or changes hands.

The bills remain under consideration in the House Finance Committee.