LAND BANK FAST TRACK DEFINITIONS; MODIFY                                     H.B. 4375 (H-1):

                                                                              SUMMARY OF HOUSE-PASSED BILL

                                                                                                         IN COMMITTEE

House Bill 4375 (Substitute H-1 as passed by the House)

Sponsor:  Representative Kristian Grant

House Committee:  Local Government and Municipal Finance

Senate Committee:  Economic and Community Development

Date Completed:  6-6-23

CONTENT

The bill would amend the Land Bank Fast Track Act to expand the definition of "qualified city" to include cities with a population of 50,000 or more, if that city were not located in a county that already had a county authority. It also would modify the definition of "local authority".

Generally, the Act governs land bank fast track authorities, which acquire, assemble, dispose of, and quiet title to public property under the Act. Currently, the Act defines "local authority" as a local land bank fast track authority created by a qualified city under the Act. The bill would modify this definition to specify that a local land bank fast track authority would have control over the properties within its geographical boundaries that were conveyed to the authority, unless that local land bank fast track authority approved an intergovernmental agreement as allowed under the Act.

The Act defines "qualified city" as a city that contains a first-class school district and includes any department or agency of the city. In addition, under the bill, the term would include a city that had a population of 50,000 or more according to the most recent Federal decennial census; however, a city with a population of 50,000 would not qualify if, at the time the city entered into an intergovernmental agreement with the State authority for the creation of a local authority, it were located in a county that had a county authority. If a city adopted a local land bank fast track authority before its county did, it would retain its jurisdiction.

MCL 124.753

PREVIOUS LEGISLATION

(Please note: This section does not provide a comprehensive account of all previous legislative efforts on the relevant subject matter.)

The bill is similar to House Bill 4423 of the 2021-2022 Legislative Session.

                                                                            Legislative Analyst:  Abby Schneider

FISCAL IMPACT

The bill would not have a direct fiscal impact on State revenue or spending. The creation of more local land banks would create the potential for more land development and/or rehabilitation, which could affect property values. Land banks require seed money to offer low or no interest loans. Local governments interested in creating a land bank would likely have to make an initial investment of several million dollars for it to be effective.

                                                                                      Fiscal Analyst:  Bobby Canell

                                                                                                       Michael Siracuse

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.