The bill authorizes the governing body of a municipality (governing body) to designate any area within such municipality as a neighborhood revitalization area if the area satisfies certain requirements and the rehabilitation, conservation, or redevelopment of the area is necessary to protect the health, safety, or welfare of the residents of the municipality. The governing body may also declare a building that is located outside the boundaries of a neighborhood revitalization area to be a dilapidated structure if the structure satisfies certain requirements.
Prior to designating an area as a neighborhood revitalization area or a structure as a dilapidated structure, the bill requires the governing body to adopt a plan for the revitalization of the area or designation of a dilapidated structure. The bill includes the required components of the plan. The bill also specifies certain actions the governing body must undertake in order to designate a building as a dilapidated structure. Prior to adopting a plan, the governing body must call and hold a hearing on the proposal. Following the hearing, the governing body may adopt the plan.
Following adoption of a plan, the bill requires the governing body to create a neighborhood revitalization fund to finance the redevelopment of designated revitalization areas and dilapidated structures and to provide property tax rebates authorized by the bill.
Any incremental increase in property taxes levied by the municipality resulting from improvements by a taxpayer to property in a neighborhood revitalization area or to a dilapidated structure may be credited to the municipality's neighborhood revitalization fund for the purpose of returning all or a part of the property tax increment to the taxpayer in the form of a rebate. Upon approval of an application for a rebate, the municipality is required to credit to the taxpayer all or a part of the property tax increment resulting from the improvements.
The bill specifies that no portion of the increment that may be claimed as a rebate by a taxpayer may include any portion of such increment that would otherwise be credited to a school district in the absence of the creation of a neighborhood revitalization area. Nothing in the bill is intended nor shall it be construed to affect the state's share of a school district's total program for any particular budget year as such share may be set in the absence of the creation of a neighborhood revitalization area.
The bill authorizes any 2 or more municipalities or a municipality and another local government to enter into an intergovernmental agreement to exercise jointly the powers and duties authorized by the bill.
The bill clarifies that its provisions are not intended to be construed to prevent municipalities from enacting and enforcing additional laws and rules on the same subject that are not in conflict with those contained in the bill.