Table of Contents:

• Administration and general information
• Requirements for eligibility
• Documents to submit for consideration
• How property tax bills get paid, once facility is approved to be in program
• Address to send information
• 2252, Tax Exemption Affidavit (TEA) form

The Department of Treasury, Finance and Accounting Division is responsible for the state payment of property taxes for senior citizen and disabled housing facilities under Section 211.7d of the Michigan Compiled Laws. There are currently about 170 senior citizen and disabled housing facilities having their local municipality reimbursed under this exemption for their property taxes under this law. If a facility is determined by the local assessor to be eligible for inclusion under the law, then the facility would request eligibility by the Department of Treasury.If the Department of Treasury agrees that the facility is eligible, the facility and corresponding municipality are notified in writing and sent the instructions for submitting tax bills. Since the State of Michigan is paying the property taxes on the facility, its residents are not eligible for a Property tax credit when filing their state income tax return.

Only facilities that have been approved by the local assessors and Department of Treasury as being eligible for the program may have their property tax bills submitted for payment. The state will only pay real and personal property taxes, not administrative fees, special assessments or penalty and interest fees.Payment of the first property tax bill is dependent upon when the first resident moved into the facility. Payment always begins with the summer tax bill. The facility has to have been occupied on December 31 of the prior year for its summer tax to be paid. For example, if the first resident moved into the facility on March 15, 2004, the first tax bill to be paid by the State would be the summer, 2005 bill. The State continues payment of property taxes as long as eligibility requirements are met.

M.C.L. 211.7d has enabled the State of Michigan to pay the property taxes of senior citizen and disabled housing facilities that satisfy the following criteria:

• The housing must be owned and operated by a non-profit organization or association, not otherwise tax-exempt;
• The housing must be occupied solely (with the exception of a caretaker) by the elderly, as defined in Section 202 of the title II of the housing act of 1959, or the disabled, as defined in Section 811 of subtitle B of title VIII of the Cranston-Gonzalez national affordable housing act;
• The housing must consist of 8 or more residential units;
• The housing must have been qualified, built or financed under Section 202, 236 or 811 of the National Housing Act.

Projects financed by Michigan State Housing Development Authority (MSHDA) do not qualify for this program. See MCL 125.1415a

After the local assessor has determined eligibility under the law, facilities requesting to be in the program must submit the following documents to the Department for review:

• A copy of the owner's Articles of Incorporation, showing nonprofit status;
• A copy of the HUD Mortgage, or other documentation, showing that the facility was financed, or qualified for financing under Section 202, 236 or 811;
• Documentation showing that the facility contains at least eight units;
• A copy of the Occupancy Permit, along with a statement giving the date the first resident actually moved into the facility;
• General information regarding the facility, including its name, address and phone number and the name, address and phone number of its management company.
• Statement from local assessor signifying exempt status of facility and facility qualifies for the program under 211.7d. and that the facility is not exempt under another section of the General Property Tax Act.

If approved, the procedure for submitting property tax bills to the State for payment is as follows:

1. Complete form 2252, Tax Exemption Affidavit (TEA). The form has three sections to be completed, one by the facility, one by the assessor and one by the local treasurer. See instructions. The forms are available from the Department of Treasury by calling (517) 373-3165, or may be downloaded from this website.
2. The local treasurer will send the completed TEA form with original signatures and copies of the real and/or personal property tax bills to be paid to the Department of Treasury address listed below.

All requests to be considered for eligibility into this program should be mailed to: