Property taxes remain one of the main reasons why Detroiters lose their homes in record amounts. However, the city is initiating programs that help delinquent tax payers catch up on back property taxes and keep their homes, helping to add to generational wealth, particularly for Black communities. As homeownership remains one of the key ways to build generational wealth, the pandemic and other factors are keeping residents stagnant.
While the deadline is approaching for Michiganders to pay their delinquent property taxes or face foreclosure, there are several programs across the state providing assistance to residents hoping to keep their homes.
The Homeowners Property Exemption, or HOPE, program may qualify residents to reduce or completely eliminate delinquent property taxes. Formerly Homeowners Property Tax Assistance Program, or HPTAP, the new program will help Detroiters find out if they can be exempt from their current year property taxes based on household income or financial circumstances.
Also known as Poverty Tax Exemption, PTE or the Hardship Program, HOPE was established to give residents much-needed relief from their property taxes and decrease the amount of Detroiters who fall victim to foreclosure.
To qualify, hopefuls must complete an application and submit several documents including a completed Michigan Department of Treasury Form 5737, Application for MCL 211.7u Poverty Exemption and Form 5739 Affirmation of Ownership and Occupancy. They must also provide registered proof of ownership of their home, valid government ID with address and picture of the homeowner and all residents over the age of 18. Proof of income will also be needed for all members of the household, including any minor children. Additional tax documents and proof of residency are also required. Documents will be reviewed by The Board of Review for approval.
The application deadline for this program is December 12, 2022.
In February, Governor Gretchen Whitmer together with the Michigan State Housing Development Authority launched the Michigan Homeowner Assistance Fund (MIHAF). Expected to help more than 8,000 homeowners keep their homes, the MIHAF allots financial assistance from federal resources established by the American Rescue Plan Act of 2021, by providing financial assistance to homeowners who have fallen behind on homeownership-related expenses, such as property taxes. Additionally, the program will help to cover delinquent mortgage, condominium payments, payment of escrow shortages and past due utilities payments including gas, water, electric, internet or broadband.
“Over the years, we’ve made great strides to keep families in their homes, and this additional financial support will build on our efforts that put Michiganders first,” said Governor Whitmer in a press release. “The program offers homeowners much-needed relief to help them overcome those financial obstacles while also providing a strong degree of housing security — a vital measure that can positively impact every part of our lives.”
To date, the U.S. Treasury allocated more than $242 million dollars towards the MIHAF program with an additional $121 million dollars to be approved at a later date. In order to qualify for the program, homeowners will have to show they are financially impacted due to the Coronavirus after January 21, 2020. Alternatively, applicants must show they had a qualified hardship that began before the January 2020 date, but continued beyond that time. They must meet income eligibility requirements, and the property must be owner-occupied. The maximum amount of assistance available through MIHAF per household is $25,000.
“The MIHAF program will ensure thousands of Michigan homeowners avoid the personal devastation of foreclosure while also helping communities across Michigan reduce the secondary impacts foreclosures can have on neighborhoods, local governments and social services networks,” said Mary Townley, Michigan State Housing Development Authority’s director of homeownership in a press release. “We are grateful to Governor Whitmer for putting Michigan first and providing this critical support.”
Additional programs may be available through community advocacy groups to help prevent foreclosure and/or provide information on applications and answers to questions relating to delinquent tax payments. Southwest Solutions, The Detroit Tax Relief Fund, Wayne Metropolitan Community Action Agency and the United Community Housing Coalition are all available to assist Detroiters in their fight to keep their homes.
About Post Author
