Traverse City TIF Ballot Proposal Violates Michigan Law, Still Must Go to Voters; A Look at Michigan’s Post-Closing Occupancy Agreement Bill Package; Garfield Township Proposes Triplex and Quadplex in R-3 District By Right and Initiates Drafting Policy to Allow STRs in Commercial Districts
In case you missed it, the Traverse City TIF Ballot Proposal was ruled to violate Michigan law but still must be voted on this November. Aspire North REALTORS® will continue to work to defeat this ballot proposal. Second, we briefly dive into Michigan’s post-closing occupancy agreement bill package, which will likely become law this fall. Lastly, the Charter Township of Garfield looks to support more housing choices by allowing triplexes and quadplexes in the R-3 district as well as a limited allowance of short-term rentals.
1. Traverse City TIF Ballot Proposal Violates Michigan Law, Still Must Go to Voters
Reporting started to come out on Wednesday, July 10th that an opinion was released by the state attorney general’s office that the Traverse City ballot proposal requiring a public vote on all tax increment financing plans violates state law in both its content and its length. The state attorney general’s opinion prompted Governor Gretchen Whitmer to reject the proposed charter. Despite the Governor’s rejection, because this proposal was initiated by a petition, state law requires that it still go to Traverse City voters this November.
The Aspire North REALTORS Board of Directors at their June 28th Board Meeting voted to oppose this ballot proposal, referred to as Traverse City Proposal 1, and work with Traverse Together, a Traverse City citizen-led ballot committee to defeat this ballot proposal. Traverse City Proposal 1 reads:
We declare that tax increment financing (“TIF”) plans shall be submitted to a vote of the people since TIF plans to divert local property tax revenue away from the general fund and basic city services such as police, fire, ambulance, streets, and parks. Any proposal to create a TIF plan or to modify, amend, or extend an existing TIF plan shall not be adopted or approved by the City or City Commission until after the proposal is submitted to and approved by a majority of the electors of the City at a regular election or at a special election held for that purpose.
For more information on the efforts to defeat Traverse City Proposal 1 check out the Traverse Together website. If you would like to voice your opposition to Traverse City Proposal 1, or get involved in campaign efforts to defeat Traverse City Proposal 1 contact me at connor@aspirenorthrealtors.com or 231-944-8315.
2. A Look at Michigan’s Post-Closing Occupancy Agreement Bill Package
Through the efforts of Michigan REALTORS and with the sponsorship of the bill package provided by Rep. John Roth a post-closing occupancy agreement bill package (House Bills 5384, 5385, and 5386) has passed the Michigan State House with overwhelming support (104 for to 5 against) and now will be considered by the Michigan State Senate.
These bills are short reads (2 pages, 3 pages, and 4 pages, respectively. However, here is the cliff notes version of the key elements of each bill, in my opinion:
- Michigan House Bill 5384 formerly establishes that a residence may be “occupied by the seller temporarily after the sale of that residence.”
- Michigan House Bill 5385 redefines a Rental Agreement, a Rental Unit, and a Tenant. The Tenant definition is important to note, which defines a tenant as “a person that occupies a rental unit for residential purposes with the landlord’s consent for an agreed-upon consideration.”
- Michigan House Bill 5386 defines all circumstances under Michigan state law when “a person entitled to possession of premises may recover possession by summary proceedings.” This includes specifically stating one of the times when recovery can be initiated as “after expiration of an agreement under which a seller is given temporary occupancy of the premises after the sale of the premises.”
The strong support for this bill package in the Michigan State House makes it seem very likely it will pass out of the Michigan State Senate when they return from summer break and be signed into law. My understanding is this legislation would provide new buyers/owners with the ability to establish protected agreements for temporary occupancy of their new home to a seller. Agreements can legally be enforced if a seller attempts to stay beyond the expiration of the agreement, an added protection of homeowners' private property rights.
3. Garfield Township Proposes Triplex and Quadplex in R-3 District By Right and Initiates Drafting Policy to Allow STRs in Commercial Districts.
At the June 26th Charter Township of Garfield Planning Commission Meeting (pages 2 and 3), Charter Township of Garfield Planning staff proposed the allowance of triplexes and quadplexes by right in the R-3 Zoning Districts to support their Master Plan goal to “provide a balance of housing choices with a variety of housing types.” The minimum lot size for triplexes would be 12,000 square feet and 16,00 square feet for a quadplex. There was a request by planning commissioners to add a provision that triplexes and quadplexes be served by public sewer, or potentially have a greater density requirement for R-3 triplexes and quadplexes which would require septic installation.
Charter Township of Garfield Planning Director, John Sych, also brought up the Michigan Legislature’s short-term rental bill (House Bill 5438) and its requirement that short-term rentals cannot be completely banned in a municipality. Director Sych suggested that in case House Bill 5438 passes, the Charter Township of Garfield should begin drafting an ordinance to end Garfield’s ban on all short-term rental activity. His proposal is to allow short-term rentals in the following commercial districts: C-G General Commercial, C-P Planned Shopping Center, and C-H Highway Commercial. Charter Township of Garfield Planning staff will begin drafting an ordinance. You can view the June 26th Charter Township of Garfield Planning Commission Meeting HERE (minute 6:52 to minute 46:34).
The Charter Township of Garfield Planning Commission will next discuss these issues this Wednesday, July 24th, 2024 6 pm at the Garfield Township Hall (3848 Veterans Drive, Traverse City, MI).
