This morning the House Local Government committee held testimony on House Bills 5566-5570, bills that amend the Emergency Municipal Loan Act and several other statutes to relax the triggers.
It would now allow communities with special assessments whose developers have abandoned a project to qualify for a loan from the Department of Treasury. The legislation also allows school districts and those communities DDAs, TIFAs and LDFAs to qualify. The loan program will have a total of $100 million to be awarded over the next 7 years with a maximum of $20 million going to any one community.
The League supports the goal of the legislation but has concerns that these bills are an attempt to “bail out” communities whose developers abandoned a project creating delinquent special assessments. We are working with the Department of Treasury to narrow the focus to ensure that all communities are equally eligible.
Samantha Harkins works for the Michigan Municipal League handling municipal services and energy and technology issues. She can be reached at 517-908-0306 or email at [email protected]