HB 5862, a bill to amend the insurance code of 1956 to increase the maximum fire insurance escrow withholding for demolition of fire damaged property, received a committee hearing today in the House Local Government Committee. Currently, the maximum amount allowed is $6,000 with inflationary adjustments. This is about half of what the cost is for average demolition costs of fire damaged property. HB 5862 will increase that amount to $12,000 with inflationary adjustments. This will be a great help to local communities in combating blighted property and creating a safe environment for local residents.
Thank you to Rep. Amanda Price for introducing this legislation and bringing it before the committee for testimony. Also, thank you to officials from the city of Detroit and city of Jackson for coming to testify in support of the legislation and how this would assist them in their daily efforts in battling blight.
Nikki Brown is a legislative associate for the League handling economic development and land use issues. She can be reached at [email protected] or 517-908-0305.