HOUSE BILL No. 4288

 

February 15, 2005, Introduced by Reps. Cheeks, Williams, Hood, Leland, Farrah, Pastor, McConico, Waters, Plakas, Accavitti, Vagnozzi, Cushingberry, Gleason, Sheltrown, Lemmons, Jr., Brown, Whitmer, Lemmons, III, Adamini, Phillips, Gaffney and Virgil Smith and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 59, 78b, 78c, 78f, 78g, 78i, 78k, 78l, and 78m

 

(MCL 211.59, 211.78b, 211.78c, 211.78f, 211.78g, 211.78i, 211.78k,

 

211.78l, and 211.78m), section 59 as amended by 2001 PA 97 and

 

sections 78b, 78c, 78f, 78g, 78i, 78k, 78l, and 78m as amended by

 

2003 PA 263.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 59. (1) A person may pay the taxes, any 1 of the taxes, a

 

portion of the taxes specified by resolution of the county board of

 

commissioners, or if a specification is not made by a resolution of

 

the county board of commissioners, a portion of the taxes approved

 

by the county treasurer on a parcel or description of property

 


returned as delinquent, or on an undivided share of a parcel or

 

description of property returned as delinquent. For taxes levied on

 

real property before January 1, 1999 and for taxes levied on

 

personal property, the amount paid under this subsection shall

 

include interest computed from the March 1 after the taxes were

 

assessed at the rate of 1% per month or fraction of a month, except

 

as provided in section 89, and 4% of the delinquent taxes as a

 

county property tax administration fee that shall be a minimum of

 

$1.00 per payment of delinquent taxes, except as provided in

 

section 89. Payment under this subsection shall be made to the

 

county treasurer of the county in which the property is situated  ,  

 

at any time before the property is sold at a tax sale held pursuant

 

to section 60  , bid off to this state pursuant to section 70,  or

 

forfeited to a county treasurer pursuant to section 78g. Payment

 

under this subsection shall be credited against the most delinquent

 

taxes. The county treasurer and the treasurer for the local tax

 

collecting unit shall allocate and distribute the taxes and

 

interest paid proportionately among the county or local tax

 

collecting unit funds and the property tax administration fee

 

returned as delinquent under section 44(6) to the treasurer of the

 

local tax collecting unit who transmitted the taxes returned as

 

delinquent. For taxes levied before January 1, 1999, on all

 

descriptions of property with unpaid taxes on the October 1 before

 

the time prescribed for the sale of a tax lien on the property, an

 

additional $10.00 shall be charged for expenses, which shall be a

 

lien on the property. If collected, $5.00 of this expense charge

 

shall be credited to a restricted revenue fund of this state, to be

 


known as the delinquent property tax administration fund, to

 

reimburse this state for the cost of publishing the lists of

 

property and other expenses, and $5.00 shall belong to the general

 

fund of the county to reimburse the county for the expense incurred

 

in preparing the list of delinquent property for sale or

 

forfeiture.

 

     (2) For taxes levied before January 1, 1999, the property tax

 

administration fee paid to the county treasurer shall be credited

 

to the general fund of the county and the property tax

 

administration fee paid to the state treasurer shall be credited to

 

the delinquent property tax administration fund. Amounts credited

 

to the general fund of the county shall be used only for the

 

purposes specified in subsection (6).

 

     (3) For taxes levied before January 1, 1999, and for taxes

 

levied after December 31, 1998, a county board of commissioners, by

 

resolution, may provide all of the following for taxes paid before

 

May 1 in the first year of delinquency for the homestead property

 

of a senior citizen, paraplegic, hemiplegic, quadriplegic, eligible

 

serviceman serviceperson, eligible veteran, eligible widow or

 

widower, totally and permanently disabled person, or blind person,

 

as those persons are defined in chapter 9 of the income tax act of

 

1967, 1967 PA 281, MCL 206.501 to 206.532, if a claim is made

 

before February 15 for the credit provided by chapter 9 of the

 

income tax act of 1967, 1967 PA 281, MCL 206.501 to 206.532, if

 

that claimant presents a copy of the form filed for that credit to

 

the county treasurer, and if that claimant has not received the

 

credit before March 1:

 


     (a) Any interest, fee, or penalty in excess of the interest,

 

fee, or penalty that would have been added if the tax had been paid

 

before February 15 is waived.

 

     (b) Interest paid under subsection (1) or section 89(1)(a) is

 

waived unless the interest is pledged to the repayment of

 

delinquent tax revolving fund notes or payable to the county

 

delinquent tax revolving fund, in which case the interest shall be

 

refunded from the general fund of the county.

 

     (c) The county property tax administration fee is waived.

 

     (4) The treasurer of the local tax collecting unit shall

 

indicate on the delinquent tax roll if a 1% property tax

 

administration fee was added to taxes collected before February 15.

 

     (5) The fees authorized and collected under this section and

 

credited to the delinquent property tax administration fund shall

 

be used by the department of treasury to pay expenses incurred in

 

the administration of this act.

 

     (6) The county property tax administration fee shall be used

 

by the county to offset the costs incurred in and ancillary to

 

collecting delinquent property taxes and for purposes authorized by

 

sections 87b and 87d.

 

     Sec. 78b. Except as otherwise provided in section 79 for

 

certified abandoned property, on the June 1 immediately succeeding

 

the date that unpaid taxes are returned to the county treasurer  

 

for forfeiture, foreclosure, and sale under section 60a(1) or (2)

 

or returned to the county treasurer  as delinquent under section

 

78a, the county treasurer shall send notice of all the following by  

 

first-class mail, address correction requested  certified mail,

 


return receipt mandatory, to the person to whom a tax bill for

 

property returned for delinquent taxes was last sent or to the

 

person identified as the owner of property returned for delinquent

 

taxes, to a person entitled to notice of the return of delinquent

 

taxes under section 78a(4), and to a person to whom a tax

 

certificate for property returned for delinquent taxes was issued

 

pursuant to former section 71, as shown on the current records of

 

the county treasurer:

 

     (a) The date property on which unpaid taxes were returned as

 

delinquent will be forfeited to the county treasurer for those

 

unpaid delinquent taxes, interest, penalties, and fees.

 

     (b) A statement that a person who holds a legal interest in

 

the property may lose that interest as a result of the forfeiture

 

and subsequent foreclosure proceeding.

 

     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person or persons to whom the notice is addressed.

 

     (e) The unpaid delinquent taxes, interest, penalties, and fees

 

due on the property.

 

     (f) A statement that unless those unpaid delinquent taxes,

 

interest, penalties, and fees are paid  on or before the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k  within 6

 

months after the entry of a judgment for possession of the property

 

is entered under chapter 57 of the revised judicature act of 1961,

 

1961 PA 236, MCL 600.5701 to 600.5759, absolute title to the

 

property shall vest in the foreclosing governmental unit.

 


     (g) A statement of the person's rights of redemption and

 

notice that the rights of redemption will expire  on the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k  6 months after

 

the entry of a judgment for possession of the property is entered

 

under chapter 57 of the revised judicature act of 1961, 1961 PA

 

236, MCL 600.5701 to 600.5759.

 

     Sec. 78c. Except as otherwise provided in section 79 for

 

certified abandoned property, on the September 1 immediately

 

succeeding the date that unpaid taxes are returned to  the county

 

treasurer for forfeiture, foreclosure, and sale under section

 

60a(1) or (2) or returned to  the county treasurer as delinquent

 

under section 78a, the county treasurer shall send notice of all

 

the following by  first-class mail, address correction requested  

 

certified mail, return receipt mandatory, to the person to whom a

 

tax bill for property returned for delinquent taxes was last sent

 

or to the person identified as the owner of property returned for

 

delinquent taxes, to a person entitled to notice of the return of

 

delinquent taxes under section 78a(4), and to a person to whom a

 

tax certificate for property returned for delinquent taxes was

 

issued pursuant to former section 71, as shown on the current

 

records of the county treasurer:

 

     (a) The date property on which unpaid taxes were returned as

 

delinquent will be forfeited to the county treasurer for those

 

unpaid delinquent taxes, interest, penalties, and fees.

 

     (b) A statement that a person who holds a legal interest in

 

the property may lose that interest as a result of the forfeiture

 


and subsequent foreclosure proceeding.

 

     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person or persons to whom the notice is addressed.

 

     (e) The unpaid delinquent taxes, interest, penalties, and fees

 

due on the property.

 

     (f) A schedule of the additional fees that will accrue on the

 

immediately succeeding October 1 pursuant to section 78d if the

 

unpaid delinquent taxes, interest, penalties, and fees due on the

 

property are not paid.

 

     (g) A statement that unless those unpaid delinquent taxes,

 

interest, penalties, and fees are paid  on or before the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k  within 6

 

months after the entry of a judgment for possession of the property

 

is entered under chapter 57 of the revised judicature act of 1961,

 

1961 PA 236, MCL 600.5701 to 600.5759, absolute title to the

 

property shall vest in the foreclosing governmental unit.

 

     (h) A statement of the person's rights of redemption and

 

notice that the rights of redemption will expire  on the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k  6 months after

 

the entry of a judgment for possession of the property is entered

 

under chapter 57 of the revised judicature act of 1961, 1961 PA

 

236, MCL 600.5701 to 600.5759.

 

     Sec. 78f. (1) Except as otherwise provided in section 79 for

 

certified abandoned property, not later than the February 1

 


immediately succeeding the date that unpaid taxes were returned  to

 

the county treasurer for forfeiture, foreclosure, and sale under

 

section 60a(1) or (2) or returned  to the county treasurer as

 

delinquent under section 78a, the county treasurer shall send a

 

notice by certified mail, return receipt  requested  mandatory, to

 

the person to whom a tax bill for property returned for delinquent

 

taxes was last sent and, if different, to the person identified as

 

the owner of property returned for delinquent taxes as shown on the

 

current records of the county treasurer and to those persons

 

identified under section 78e(2). The notice required under this

 

subsection shall include all of the following:

 

     (a) The date property on which those unpaid taxes were

 

returned as delinquent will be forfeited to the county treasurer

 

for the unpaid delinquent taxes, interest, penalties, and fees.

 

     (b) A statement that a person who holds a legal interest in

 

the property may lose that interest as a result of the forfeiture

 

and subsequent foreclosure proceeding.

 

     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person to whom the notice is addressed.

 

     (e) The unpaid delinquent taxes, interest, penalties, and fees

 

due on the property.

 

     (f) A schedule of the additional interest, penalties, and fees

 

that will accrue on the immediately succeeding March 1 pursuant to

 

section 78g if those unpaid delinquent taxes, interest, penalties,

 

and fees due on the property are not paid.

 

     (g) A statement that unless those unpaid delinquent taxes,

 


interest, penalties, and fees are paid  on or before the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k  within 6

 

months after the entry of a judgment for possession of the property

 

is entered under chapter 57 of the revised judicature act of 1961,

 

1961 PA 236, MCL 600.5701 to 600.5759, absolute title to the

 

property shall vest in the foreclosing governmental unit.

 

     (h) A statement of the person's rights of redemption and

 

notice that the rights of redemption will expire  on the March 31

 

immediately succeeding the entry in an uncontested case of a

 

judgment foreclosing the property under section 78k  6 months after

 

the entry of a judgment for possession of the property is entered

 

under chapter 57 of the revised judicature act of 1961, 1961 PA

 

236, MCL 600.5701 to 600.5759.

 

     (2) The notice required under subsection (1) shall also be

 

mailed to the property by  first-class mail  certified mail, return

 

receipt mandatory, addressed to "occupant", if the notice was not

 

sent to the occupant of the property pursuant to subsection (1).

 

     (3) A county treasurer  may  shall insert 1 or more additional

 

notices in  a  the newspaper with the largest circulation published

 

and circulated in the county in which the property is located, if

 

there is one. If no newspaper is published in that county,

 

publication  may  shall be made in  a  the newspaper with the

 

largest circulation published and circulated in an adjoining

 

county.

 

     (4) The county treasurer  may  shall publish the street

 

address, if available, of property subject to forfeiture under

 


section 78g on the immediately succeeding March 1 for delinquent

 

taxes or the street address, if available, of property subject to

 

forfeiture under section 78g on the immediately succeeding March 1

 

for delinquent taxes and the name of the person to whom a tax bill

 

for property returned for delinquent taxes was last sent and, if

 

different, the name of the person identified as the owner of the

 

property returned for delinquent taxes as shown on the current

 

records of the county treasurer in  a  the newspaper with the

 

largest circulation published and circulated in the county in which

 

the property is located, if there is one. If no newspaper is

 

published in that county, publication may be made in  a  the

 

newspaper with the largest circulation published and circulated in

 

an adjoining county.

 

     Sec. 78g. (1) Except as otherwise provided in this subsection,

 

on March 1 in each tax year, certified abandoned property and

 

property that is delinquent for taxes, interest, penalties, and

 

fees for the immediately preceding 12 months or more is forfeited

 

to the county treasurer for the total amount of those unpaid

 

delinquent taxes, interest, penalties, and fees. If property is

 

forfeited to a county treasurer under this subsection, the

 

foreclosing governmental unit does not have a right to possession

 

of the property until  the April 1 immediately succeeding the entry

 

of a judgment foreclosing the property under section 78k or in a

 

contested case until 22 days after the entry of a judgment

 

foreclosing the property under section 78k  6 months after the

 

entry of a judgment for possession of the property is entered under

 

chapter 57 of the revised judicature act of 1961, 1961 PA 236, MCL

 


600.5701 to 600.5759. If property is forfeited to a county

 

treasurer under this subsection, the county treasurer shall add a

 

$175.00 fee to each parcel of property for which those delinquent

 

taxes, interest, penalties, and fees remain unpaid. A county

 

treasurer shall withhold a parcel of property from forfeiture for

 

any reason determined by the state tax commission. The procedure

 

for withholding a parcel of property from forfeiture under this

 

subsection shall be determined by the state tax commission.

 

     (2) Not more than 45 days after property is forfeited under

 

subsection (1), the county treasurer shall record with the county

 

register of deeds a certificate in a form determined by the

 

department of treasury for each parcel of property forfeited to the

 

county treasurer, specifying that the property has been forfeited

 

to the county treasurer and not redeemed and that absolute title to

 

the property shall vest in the county treasurer  on the March 31

 

immediately succeeding the entry of a judgment foreclosing the

 

property under section 78k or in a contested case 21 days after the

 

entry of a judgment foreclosing the property under section 78k  6

 

months after the entry of a judgment for possession of the property

 

is entered under chapter 57 of the revised judicature act of 1961,

 

1961 PA 236, MCL 600.5701 to 600.5759. If a certificate of

 

forfeiture is recorded in error, the county treasurer shall record

 

with the county register of deeds a certificate of error in a form

 

prescribed by the department of treasury. A certificate submitted

 

to the county register of deeds for recording under this subsection

 

need not be notarized and may be authenticated by a digital

 

signature of the county treasurer or by other electronic means. If

 


the county has elected under section 78 to have this state

 

foreclose property under this act forfeited to the county treasurer

 

under this section, the county treasurer shall immediately transmit

 

to the department of treasury a copy of each certificate recorded

 

under this subsection. The county treasurer shall upon collection

 

transmit to the department of treasury within 30 days the fee added

 

to each parcel under subsection (1), which may be paid from the

 

county's delinquent tax revolving fund and shall be deposited in

 

the land reutilization fund created under section 78n.

 

     (3) Property forfeited to the county treasurer under

 

subsection (1) may be redeemed at any time  on or before the March

 

31 immediately succeeding the entry of a judgment foreclosing the

 

property under section 78k or in a contested case within 21 days of

 

the entry of a judgment foreclosing the property under section 78k  

 

within 6 months after the entry of a judgment for possession of the

 

property is entered under chapter 57 of the revised judicature act

 

of 1961, 1961 PA 236, MCL 600.5701 to 600.5759, upon payment to the

 

county treasurer of all of the following:

 

     (a) The total amount of unpaid delinquent taxes, interest,

 

penalties, and fees for which the property was forfeited.

 

     (b) In addition to the interest calculated under  sections

 

60a(1) or (2) and  section 78a(3), additional interest computed at

 

a noncompounded rate of 1/2% per month or fraction of a month on

 

the taxes that were originally returned as delinquent, computed

 

from the March 1 preceding the forfeiture.

 

     (c) All recording fees and all fees for service of process or

 

notice.

 


     (4) If property is redeemed by a person with a legal interest

 

as provided under subsection (3), any unpaid taxes not returned as

 

delinquent to the county treasurer under section 78a are not

 

extinguished.

 

     (5) If property is redeemed by a person with a legal interest

 

as provided under subsection (3), the person redeeming does not

 

acquire a title or interest in the property greater than that

 

person would have had if the property had not been forfeited to the

 

county treasurer, but the person redeeming, other than the owner,

 

is entitled to a lien for the amount paid to redeem the property in

 

addition to any other lien or interest the person may have, which

 

shall be recorded within 30 days with the register of deeds by the

 

person entitled to the lien. The lien acquired shall have the same

 

priority as the existing lien, title, or interest.

 

     (6) If property is redeemed as provided under subsection (3),

 

the county treasurer shall issue a redemption certificate in

 

quadruplicate in a form prescribed by the department of treasury.

 

One of the quadruplicate certificates shall be delivered to the

 

person making the redemption payment, 1 shall be filed in the

 

office of the county treasurer, 1 shall be recorded in the office

 

of the county register of deeds, and 1 shall be immediately

 

transmitted to the department of treasury if this state is the

 

foreclosing governmental unit. The county treasurer shall also make

 

a note of the redemption certificate in the tax record kept in his

 

or her office, with the name of the person making the final

 

redemption payment, the date of the payment, and the amount paid.

 

If the county treasurer accepts partial redemption payments, the

 


county treasurer shall include in the tax record kept in his or her

 

office the name of the person or persons making each partial

 

redemption payment, the date of each partial redemption payment,

 

the amount of each partial redemption payment, and the total amount

 

of all redemption payments. A certificate and the entry of the

 

certificate in the tax record by the county treasurer is prima

 

facie evidence of a redemption payment in the courts of this state.

 

A certificate submitted to the county register of deeds for

 

recording under this subsection need not be notarized and may be

 

authenticated by a digital signature of the county treasurer or by

 

other electronic means. If a redemption certificate is recorded in

 

error, the county treasurer shall record with the county register

 

of deeds a certificate of error in a form prescribed by the

 

department of treasury. A copy of a certificate of error recorded

 

under this section shall be immediately transmitted to the

 

department of treasury if this state is the foreclosing

 

governmental unit. Payment under this subsection shall be credited

 

against the most delinquent taxes.

 

     (7) If a foreclosing governmental unit has reason to believe

 

that a property forfeited under this section may be the site of

 

environmental contamination, the foreclosing governmental unit

 

shall provide the department of environmental quality with any

 

information in the possession of the foreclosing governmental unit

 

that suggests the property may be the site of environmental

 

contamination.

 

     Sec. 78i. (1) Not later than May 1 immediately succeeding the

 

forfeiture of property to the county treasurer under section 78g,

 


the foreclosing governmental unit shall initiate a search of

 

records identified in subsection (6) to identify the owners of a

 

property interest in the property who are entitled to notice under

 

this section of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k. The foreclosing governmental

 

unit may enter into a contract with 1 or more authorized

 

representatives to perform a title search or may request from 1 or

 

more authorized representatives another title search product to

 

identify the owners of a property interest in the property as

 

required under this subsection or to perform other functions

 

required for the collection of delinquent taxes under this act.

 

     (2) After conducting the search of records under subsection

 

(1), the foreclosing governmental unit or its authorized

 

representative shall determine the address reasonably calculated to

 

apprise those owners of a property interest of the show cause

 

hearing under section 78j and the foreclosure hearing under section

 

78k and shall send notice of the show cause hearing under section

 

78j and the foreclosure hearing under section 78k to those owners,

 

to a person entitled to notice of the return of delinquent taxes

 

under section 78a(4)  , and to a person to whom a tax deed for

 

property returned for delinquent taxes was issued pursuant to

 

section 72  as determined by the records of the state treasurer or

 

county treasurer as applicable, by certified mail, return receipt  

 

requested  mandatory, not less than 30 days before the show cause

 

hearing. If after conducting the search of records under subsection

 

(1) the foreclosing governmental unit is unable to determine an

 

address reasonably calculated to inform a person with an interest

 


in a forfeited property, or if the foreclosing governmental unit

 

discovers a deficiency in notice under subsection (4), the

 

following shall be considered reasonable steps by the foreclosing

 

governmental unit or its authorized representative to ascertain the

 

address of a person entitled to notice under this section or to

 

ascertain an address necessary to correct the deficiency in notice

 

under subsection (4):

 

     (a) For an individual, a search of the records of the probate

 

court for the county in which the property is located.

 

     (b) For an individual, a search of the qualified voter file

 

established under section 509o of the Michigan election law, 1954

 

PA 116, MCL 168.509o, which is authorized by this subdivision.

 

     (c) For a partnership, a search of partnership records filed

 

with the county clerk.

 

     (d) For a business entity other than a partnership, a search

 

of business entity records filed with the department of labor and

 

economic growth.

 

     (3) The foreclosing governmental unit or its authorized

 

representative or authorized agent shall make a personal visit to

 

each parcel of property forfeited to the county treasurer under

 

section 78g to ascertain whether or not the property is occupied.

 

If the property appears to be occupied, the foreclosing

 

governmental unit or its authorized representative shall do all of

 

the following:

 

     (a) Attempt to personally serve upon a person occupying the

 

property notice of the show cause hearing under section 78j and the

 

foreclosure hearing under section 78k.

 


     (b) If a person occupying the property is personally served,

 

orally inform the occupant that the property will be foreclosed and

 

the occupants will be required to vacate unless all forfeited

 

unpaid delinquent taxes, interest, penalties, and fees are paid, of

 

the time within which all forfeited unpaid delinquent taxes,

 

interest, penalties, and fees must be paid, and of agencies or

 

other resources that may be available to assist the owner to avoid

 

loss of the property.

 

     (c) If the occupant appears to lack the ability to understand

 

the advice given, notify the family independence agency or provide

 

the occupant with the names and telephone numbers of the agencies

 

that may be able to assist the occupant.

 

     (d)  If the foreclosing governmental unit or its authorized

 

representative is not able to personally meet with the occupant,

 

the  The foreclosing governmental unit or its authorized

 

representative shall place the notice in a conspicuous manner on

 

the property and shall also place in a conspicuous manner on the

 

property a notice that explains, in plain English, that the

 

property will be foreclosed unless forfeited unpaid delinquent

 

taxes, interest, penalties, and fees are paid, the time within

 

which forfeited unpaid delinquent taxes, interest, penalties, and

 

fees must be paid, and the names, addresses, and telephone numbers

 

of agencies or other resources that may be available to assist the

 

occupant to avoid loss of the property. The notice shall be on 11-

 

inch by 15-inch legal size, bright, iridescent paper and printed in

 

24-point bold lettering. The foreclosing governmental unit shall

 

photograph each notice placed on the property. If this state is the

 


foreclosing governmental unit within a county, the department of

 

natural resources shall perform the personal visit to each parcel

 

of property under this subsection on behalf of this state.

 

     (4) If the foreclosing governmental unit or its authorized

 

representative discovers any deficiency in the provision of notice,

 

the foreclosing governmental unit shall take reasonable steps in

 

good faith to correct that deficiency not later than 30 days before

 

the show cause hearing under section 78j, if possible. If it is

 

determined that within a county there is a deficiency in the

 

provision of notice to 20% or more of the owners of a property

 

interest who are entitled to notice under this section, an owner of

 

a property interest who is entitled to notice under this section,

 

his or her authorized representative, or his or her attorney may

 

seek a writ of mandamus under chapter 44 of the revised judicature

 

act, 1961 PA 236, MCL 600.4401 to 600.4431, to compel the

 

foreclosing governmental unit or its authorized representative to

 

correct that deficiency in notice.

 

     (5)  If the foreclosing governmental unit or its authorized

 

representative is unable to ascertain the address reasonably

 

calculated to apprise the owners of a property interest entitled to

 

notice under this section, or is unable to notify the owner of a

 

property interest under subsection (2), the  In addition to service

 

by certified mail, return receipt mandatory and a personal visit,

 

notice shall also be made by publication. A notice shall be

 

published for 3 successive weeks, once each week, in  a  the

 

newspaper with the largest circulation published and circulated in

 

the county in which the property is located, if there is one. If no

 


paper is published in that county, publication shall be made in  a  

 

the newspaper with the largest circulation published and circulated

 

in an adjoining county. This publication shall be  instead of  in

 

addition to the notice under subsection (2).

 

     (6) The owner of a property interest is entitled to notice

 

under this section of the show cause hearing under section 78j and

 

the foreclosure hearing under section 78k if that owner's interest

 

was identifiable by reference to any of the following sources

 

before the date that the county treasurer records the certificate

 

required under section 78g(2):

 

     (a) Land title records in the office of the county register of

 

deeds.

 

     (b) Tax records in the office of the county treasurer.

 

     (c) Tax records in the office of the local assessor.

 

     (d) Tax records in the office of the local treasurer.

 

     (7) The notice required under subsections (2) and (3) shall

 

include all of the following:

 

     (a) The date on which the property was forfeited to the county

 

treasurer.

 

     (b) A statement that the person notified may lose his or her

 

interest in the property as a result of the foreclosure proceeding

 

under section 78k.

 

     (c) A legal description or parcel number of the property and

 

the street address of the property, if available.

 

     (d) The person to whom the notice is addressed.

 

     (e) The total taxes, interest, penalties, and fees due on the

 

property.

 


     (f) The date and time of the show cause hearing under section

 

78j.

 

     (g) The date and time of the hearing on the petition for

 

foreclosure under section 78k, and a statement that unless the

 

forfeited unpaid delinquent taxes, interest, penalties, and fees

 

are paid  on or before the March 31 immediately succeeding the

 

entry of a judgment foreclosing the property under section 78k, or

 

in a contested case within 21 days of the entry of a judgment

 

foreclosing the property under section 78k  within 6 months after

 

the entry of a judgment for possession of the property is entered

 

under chapter 57 of the revised judicature act of 1961, 1961 PA

 

236, MCL 600.5701 to 600.5759, the title to the property shall vest

 

absolutely in the foreclosing governmental unit.

 

     (h) An explanation of the person's rights of redemption and

 

notice that the rights of redemption will expire  on the March 31

 

immediately succeeding the entry of a judgment foreclosing the

 

property under section 78k, or in a contested case 21 days after

 

the entry of a judgment foreclosing the property under section 78k  

 

6 months after the entry of a judgment for possession of the

 

property is entered under chapter 57 of the revised judicature act

 

of 1961, 1961 PA 236, MCL 600.5701 to 600.5759.

 

     (8) The published notice required under subsection (5) shall

 

include all of the following:

 

     (a) A legal description or parcel number of each property.

 

     (b) The street address of each property, if available.

 

     (c) The name of any person or entity entitled to notice under

 

this section.  who has not been notified under subsection (2) or

 


(3).

 

     (d) The date and time of the show cause hearing under section

 

78j.

 

     (e) The date and time of the hearing on the petition for

 

foreclosure under section 78k.

 

     (f) A statement that unless all forfeited unpaid delinquent

 

taxes, interest, penalties, and fees are paid  on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under section 78k, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under

 

section 78k  within 6 months after the entry of a judgment for

 

possession of the property is entered under chapter 57 of the

 

revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 

600.5759, the title to the property shall vest absolutely in the

 

foreclosing governmental unit.

 

     (g) A statement that a person with an interest in the property

 

may lose his or her interest in the property as a result of the

 

foreclosure proceeding under section 78k.

 

     (9) The owner of a property interest who has been properly

 

served with a notice of the show cause hearing under section 78j

 

and the foreclosure hearing under section 78k and who failed to

 

redeem the property as provided under this act shall not assert any

 

of the following:

 

     (a) That notice was insufficient or inadequate on the grounds

 

that some other owner of a property interest was not also served.

 

     (b) That the redemption period provided under this act was

 

extended in any way on the grounds that some other owner of a

 


property interest was not also served.

 

     (10) The failure of the foreclosing governmental unit to

 

comply with any provision of this section shall not invalidate any

 

proceeding under this act if the owner of a property interest or a

 

person to whom a tax deed was issued is accorded the minimum due

 

process required under the state constitution of 1963 and the

 

constitution of the United States.

 

     (11) As used in this section, "authorized representative"

 

includes all of the following:

 

     (a) A title insurance company or agent licensed to conduct

 

business in this state.

 

     (b) An attorney licensed to practice law in this state.

 

     (c) A person accredited in land title search procedures by a

 

nationally recognized organization in the field of land title

 

searching.

 

     (d) A person with demonstrated experience searching land title

 

records, as determined by the foreclosing governmental unit.

 

     (12) The provisions of this section relating to notice of the

 

show cause hearing under section 78j and the foreclosure hearing

 

under section 78k are exclusive and exhaustive. Other requirements

 

relating to notice or proof of service under other law, rule, or

 

legal requirement are not applicable to notice and proof of service

 

under this section.

 

     Sec. 78k. (1) If a petition for foreclosure is filed under

 

section 78h, not later than the date of the hearing, the

 

foreclosing governmental unit shall file with the clerk of the

 

circuit court proof of service of the notice of the show cause

 


hearing under section 78j, proof of service of the notice of the

 

foreclosure hearing under this section, and proof of the personal

 

visit to the property and publication under section 78i. Proof of

 

the personal visit to the property shall include a sworn statement

 

attesting to the personal visit and a photograph depicting each

 

notice placed on the property.

 

     (2) A person claiming an interest in a parcel of property set

 

forth in the petition for foreclosure may contest the validity or

 

correctness of the forfeited unpaid delinquent taxes, interest,

 

penalties, and fees for 1 or more of the following reasons:

 

     (a) No law authorizes the tax.

 

     (b) The person appointed to decide whether a tax shall be

 

levied under a law of this state acted without jurisdiction, or did

 

not impose the tax in question.

 

     (c) The property was exempt from the tax in question, or the

 

tax was not legally levied.

 

     (d) The tax has been paid within the time limited by law for

 

payment or redemption.

 

     (e) The tax was assessed fraudulently.

 

     (f) The description of the property used in the assessment was

 

so indefinite or erroneous that the forfeiture was void.

 

     (3) A person claiming an interest in a parcel of property set

 

forth in the petition for foreclosure who desires to contest that

 

petition shall file written objections with the clerk of the

 

circuit court and serve those objections on the foreclosing

 

governmental unit prior to the date of the hearing required under

 

this section.

 


     (4) If the court determines that the owner of property subject

 

to foreclosure is a minor heir, is incompetent, is without means of

 

support, or is undergoing a substantial financial hardship, the

 

court may withhold that property from foreclosure for 1 year or may

 

enter an order extending the redemption period as the court

 

determines to be equitable. If the court withholds property from

 

foreclosure under this subsection, a taxing unit's lien for taxes

 

due is not prejudiced and that property shall be included in the

 

immediately succeeding year's tax foreclosure proceeding.

 

     (5) The circuit court shall enter final judgment on a petition

 

for foreclosure filed under section 78h at any time after the

 

hearing under this section but not later than the March 30

 

immediately succeeding the hearing with the judgment effective  on

 

the March 31 immediately succeeding the hearing for uncontested

 

cases or 10 days after the conclusion of the hearing for contested

 

cases  6 months after the entry of a judgment for possession of the

 

property is entered under chapter 57 of the revised judicature act

 

of 1961, 1961 PA 236, MCL 600.5701 to 600.5759. All redemption

 

rights to the property expire  on the March 31 immediately

 

succeeding the entry of a judgment foreclosing the property under

 

this section, or in a contested case 21 days after the entry of a

 

judgment foreclosing the property under this section  6 months

 

after the entry of a judgment for possession of the property is

 

entered under chapter 57 of the revised judicature act of 1961,

 

1961 PA 236, MCL 600.5701 to 600.5759. The circuit court's judgment

 

shall specify all of the following:

 

     (a) The legal description and, if known, the street address of

 


the property foreclosed and the forfeited unpaid delinquent taxes,

 

interest, penalties, and fees due on each parcel of property.

 

     (b) That fee simple title to property foreclosed by the

 

judgment will vest absolutely in the foreclosing governmental unit,

 

except as otherwise provided in subdivisions (c) and (e), without

 

any further rights of redemption, if all forfeited delinquent

 

taxes, interest, penalties, and fees are not paid  on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under this section, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under this

 

section  within 6 months after the entry of a judgment for

 

possession of the property is entered under chapter 57 of the

 

revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 

600.5759.

 

     (c) That all liens against the property, including any lien

 

for unpaid taxes or special assessments, except future installments

 

of special assessments and liens recorded by this state or the

 

foreclosing governmental unit pursuant to the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.101 to

 

324.90106, are extinguished, if all forfeited delinquent taxes,

 

interest, penalties, and fees are not paid  on or before the March

 

31 immediately succeeding the entry of a judgment foreclosing the

 

property under this section, or in a contested case within 21 days

 

of the entry of a judgment foreclosing the property under this

 

section  within 6 months after the entry of a judgment for

 

possession of the property is entered under chapter 57 of the

 

revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 


600.5759.

 

     (d) That, except as otherwise provided in subdivisions (c) and

 

(e), the foreclosing governmental unit has good and marketable fee

 

simple title to the property, if all forfeited delinquent taxes,

 

interest, penalties, and fees are not paid  on or before the March

 

31 immediately succeeding the entry of a judgment foreclosing the

 

property under this section, or in a contested case within 21 days

 

of the entry of a judgment foreclosing the property under this

 

section  within 6 months after the entry of a judgment for

 

possession of the property is entered under chapter 57 of the

 

revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 

600.5759.

 

     (e) That all existing recorded and unrecorded interests in

 

that property are extinguished, except a visible or recorded

 

easement or right-of-way, private deed restrictions, or

 

restrictions or other governmental interests imposed pursuant to

 

the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.101 to 324.90106, if all forfeited delinquent taxes,

 

interest, penalties, and fees are not paid  on or before the March

 

31 immediately succeeding the entry of a judgment foreclosing the

 

property under this section, or in a contested case within 21 days

 

of the entry of a judgment foreclosing the property under this

 

section  within 6 months after the entry of a judgment for

 

possession of the property is entered under chapter 57 of the

 

revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 

600.5759.

 

     (f) A finding that all persons entitled to notice and an

 


opportunity to be heard have been provided that notice and

 

opportunity. A person shall be deemed to have been provided notice

 

and an opportunity to be heard if the foreclosing governmental unit

 

followed the procedures for provision of notice by mail, for visits

 

to forfeited property, and for publication under section 78i, or if

 

1 or more of the following apply:

 

     (i) The person had constructive notice of the hearing under

 

this section by acquiring an interest in the property after the

 

date the notice of forfeiture is recorded under section 78g.

 

     (ii) The person appeared at the hearing under this section or

 

filed written objections with the clerk of the circuit court under

 

subsection (3) prior to the hearing.

 

     (iii) Prior to the hearing under this section, the person had

 

actual notice of the hearing.

 

     (g) A judgment entered under this section is a final order

 

with respect to the property affected by the judgment and except as

 

provided in subsection (7) shall not be modified, stayed, or held

 

invalid  after the March 31 immediately succeeding the entry of a

 

judgment foreclosing the property under this section, or for

 

contested cases 21 days after the entry of a judgment foreclosing

 

the property under this section  6 months after the entry of a

 

judgment for possession of the property is entered under chapter 57

 

of the revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 

600.5759.

 

     (6) Except as otherwise provided in subsection (5)(c) and (e),

 

fee simple title to property set forth in a petition for

 

foreclosure filed under section 78h on which forfeited delinquent

 


taxes, interest, penalties, and fees are not paid  on or before the

 

March 31 immediately succeeding the entry of a judgment foreclosing

 

the property under this section, or in a contested case within 21

 

days of the entry of a judgment foreclosing the property under this

 

section  within 6 months after the entry of a judgment for

 

possession of the property is entered under chapter 57 of the

 

revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 

600.5759, shall vest absolutely in the foreclosing governmental

 

unit, and the foreclosing governmental unit shall have absolute

 

title to the property. The foreclosing governmental unit's title is

 

not subject to any recorded or unrecorded lien and shall not be

 

stayed or held invalid except as provided in subsection (7) or (9).

 

     (7) The foreclosing governmental unit or a person claiming to

 

have a property interest under section 78i in property foreclosed

 

under this section may appeal the circuit court's order or the

 

circuit court's judgment foreclosing property to the court of

 

appeals. An appeal under this subsection is limited to the record

 

of the proceedings in the circuit court under this section and

 

shall not be de novo. The circuit court's judgment foreclosing

 

property shall be stayed until the court of appeals has reversed,

 

modified, or affirmed that judgment. If an appeal under this

 

subsection stays the circuit court's judgment foreclosing property,

 

the circuit court's judgment is stayed only as to the property that

 

is the subject of that appeal and the circuit court's judgment

 

foreclosing other property that is not the subject of that appeal

 

is not stayed. To appeal the circuit court's judgment foreclosing

 

property, a person appealing the judgment shall pay to the county

 


treasurer the amount determined to be due to the county treasurer

 

under the judgment  on or before the March 31 immediately

 

succeeding the entry of a judgment foreclosing the property under

 

this section, or in a contested case within 21 days of the entry of

 

a judgment foreclosing the property under this section,  together

 

with a notice of appeal. If the circuit court's judgment

 

foreclosing the property is affirmed on appeal, the amount

 

determined to be due shall be refunded to the person who appealed

 

the judgment. If the circuit court's judgment foreclosing the

 

property is reversed or modified on appeal, the county treasurer

 

shall refund the amount determined to be due to the person who

 

appealed the judgment, if any, and retain the balance in accordance

 

with the order of the court of appeals.

 

     (8) The foreclosing governmental unit shall record a notice of

 

judgment for each parcel of foreclosed property in the office of

 

the register of deeds for the county in which the foreclosed

 

property is located in a form prescribed by the department of

 

treasury.

 

     (9) After the entry of a judgment foreclosing the property

 

under this section, if the property has not been transferred under

 

section 78m to a person other than the foreclosing governmental

 

unit, a foreclosing governmental unit may cancel the foreclosure by

 

recording with the register of deeds for the county in which the

 

property is located a certificate of error in a form prescribed by

 

the department of treasury, if the foreclosing governmental unit

 

discovers any of the following:

 

     (a) The foreclosed property was not subject to taxation on the

 


date of the assessment of the unpaid taxes for which the property

 

was foreclosed.

 

     (b) The description of the property used in the assessment of

 

the unpaid taxes for which the property was foreclosed was so

 

indefinite or erroneous that the forfeiture of the property was

 

void.

 

     (c) The taxes for which the property was foreclosed had been

 

paid to the proper officer within the time provided under this act

 

for the payment of the taxes or the redemption of the property.

 

     (d) A certificate, including a certificate issued under

 

section 135, or other written verification authorized by law was

 

issued by the proper officer within the time provided under this

 

act for the payment of the taxes for which the property was

 

foreclosed or for the redemption of the property.

 

     (e) An owner of an interest in the property entitled to notice

 

under section 78i was not provided notice sufficient to satisfy the

 

minimum requirements of due process required under the state

 

constitution of 1963 and the constitution of the United States.

 

     (f) A judgment of foreclosure was entered under this section

 

in violation of an order issued by a United States bankruptcy

 

court.

 

     (10) A certificate of error submitted to the county register

 

of deeds for recording under subsection (9) need not be notarized

 

and may be authenticated by a digital signature of the foreclosing

 

governmental unit or by other electronic means.

 

     Sec. 78l. (1)  If  At any time after a judgment for foreclosure

 

is entered under section 78k and all existing recorded and

 


unrecorded interests in a parcel of property are extinguished as

 

provided in section 78k, if the owner of any extinguished recorded

 

or unrecorded interest in that property  who  claims that he or she

 

did not receive any notice required under this act,  shall not  the

 

court shall vacate the judgment of foreclosure entered under

 

section 78k, the owner may bring an action for possession of the

 

property against any subsequent owner,  but may only bring an

 

action to recover monetary damages as provided in this section  and

 

the owner shall have an additional 6 months to pay all forfeited

 

unpaid delinquent taxes, interest, penalties, and fees due on the

 

property.

 

     (2)  The court of claims has original and exclusive

 

jurisdiction in any action to recover monetary damages under this

 

section.  An owner of property subject to a judgment of foreclosure

 

under section 78k shall have not less than 6 months to pay all

 

forfeited unpaid delinquent taxes, interest, penalties, and fees

 

due on the property after a judgment for possession of the property

 

is entered under chapter 57 of the revised judicature act of 1961,

 

1961 PA 236, MCL 600.5701 to 600.5759. Absolute title to the

 

property shall not vest in the foreclosing governmental unit until

 

6 months after the entry of a judgment for possession of the

 

property is entered under chapter 57 of the revised judicature act

 

of 1961, 1961 PA 236, MCL 600.5701 to 600.5759. A judgment for

 

possession of the property entered under chapter 57 of the revised

 

judicature act of 1961, 1961 PA 236, MCL 600.5701 to 600.5759, is

 

stayed for not less than 6 months after the entry of a judgment for

 

possession is entered.

 


      (3) An action to recover monetary damages under this section

 

shall not be brought more than 2 years after a judgment for

 

foreclosure is entered under section 78k.

 

     (4) Any monetary damages recoverable under this section shall

 

be determined as of the date a judgment for foreclosure is entered

 

under section 78k and shall not exceed the fair market value of the

 

interest in the property held by the person bringing the action

 

under this section on that date, less any taxes, interest,

 

penalties, and fees owed on the property as of that date.

 

     (5) The right to sue for monetary damages under this section

 

is not transferable except by testate or intestate succession.

 

     Sec. 78m. (1)  Not later than the first Tuesday in July,

 

immediately succeeding the entry of judgment under section 78k

 

vesting absolute title to tax delinquent property in the

 

foreclosing governmental unit  Six months after the entry of a

 

judgment for possession of the property is entered under chapter 57

 

of the revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to

 

600.5759, and if all forfeited unpaid delinquent taxes, interest,

 

penalties, and fees due on the property have not been paid, this

 

state is granted the right of first refusal to purchase property at

 

the greater of the minimum bid or its fair market value by paying

 

that amount to the foreclosing governmental unit if the foreclosing

 

governmental unit is not this state. If this state elects not to

 

purchase the property under its right of first refusal, a city,

 

village, or township may purchase for a public purpose any property

 

located within that city, village, or township set forth in the

 

judgment and subject to sale under this section by payment to the

 


foreclosing governmental unit of the minimum bid. If a city,

 

village, or township does not purchase that property, the county in

 

which that property is located may purchase that property under

 

this section by payment to the foreclosing governmental unit of the

 

minimum bid. If property is purchased by a city, village, township,

 

or county under this subsection, the foreclosing governmental unit

 

shall convey the property to the purchasing city, village,

 

township, or county within 30 days. If property purchased by a

 

city, village, township, or county under this subsection is

 

subsequently sold for an amount in excess of the minimum bid and

 

all costs incurred relating to demolition, renovation,

 

improvements, or infrastructure development, the excess amount

 

shall be returned to the delinquent tax property sales proceeds

 

account for the year in which the property was purchased by the

 

city, village, township, or county or, if this state is the

 

foreclosing governmental unit within a county, to the land

 

reutilization fund created under section 78n. Upon the request of

 

the foreclosing governmental unit, a city, village, township, or

 

county that purchased property under this subsection shall provide

 

to the foreclosing governmental unit without cost information

 

regarding any subsequent sale or transfer of the property. This

 

subsection applies to the purchase of property by this state, a

 

city, village, or township, or a county prior to a sale held under

 

subsection (2).

 

     (2) Subject to subsection (1),  beginning on the third Tuesday

 

in July immediately succeeding the entry of the judgment under

 

section 78k vesting absolute title to tax delinquent property in

 


the foreclosing governmental unit and ending on the immediately

 

succeeding first Tuesday in November,  the foreclosing governmental

 

unit, or its authorized agent, at the option of the foreclosing

 

governmental unit, shall hold at least 2 property sales at 1 or

 

more convenient locations at which property foreclosed by the

 

judgment entered under section 78k shall be sold by auction sale,

 

which may include an auction sale conducted via an internet

 

website. Notice of the time and location of the sales shall be

 

published not less than 30 days before each sale in a newspaper

 

published and circulated in the county in which the property is

 

located, if there is one. If no newspaper is published in that

 

county, publication shall be made in a newspaper published and

 

circulated in an adjoining county.  Each sale shall be completed

 

before the first Tuesday in November immediately succeeding the

 

entry of judgment under section 78k vesting absolute title to the

 

tax delinquent property in the foreclosing governmental unit.  

 

Except as provided in subsection (5), property shall be sold to the

 

person bidding the highest amount above the minimum bid. The

 

foreclosing governmental unit may sell parcels individually or may

 

offer 2 or more parcels for sale as a group. The minimum bid for a

 

group of parcels shall equal the sum of the minimum bid for each

 

parcel included in the group. The foreclosing governmental unit may

 

adopt procedures governing the conduct of the sale and may cancel

 

the sale prior to the issuance of a deed under this subsection if

 

authorized under the procedures. The foreclosing governmental unit

 

may require full payment by cash, certified check, or money order

 

at the close of each day's bidding. Not more than 30 days after the

 


date of a sale under this subsection, the foreclosing governmental

 

unit shall convey the property by deed to the person bidding the

 

highest amount above the minimum bid. The deed shall vest fee

 

simple title to the property in the person bidding the highest

 

amount above the minimum bid, unless the foreclosing governmental

 

unit discovers a defect in the foreclosure of the property under

 

sections 78 to 78l. If this state is the foreclosing governmental

 

unit within a county, the department of natural resources shall

 

conduct the sale of property under this subsection and subsections

 

(4) and (5) on behalf of this state.

 

     (3) For sales held under subsection (2), after the conclusion

 

of that sale, and prior to any additional sale held under

 

subsection (2), a city, village, or township may purchase any

 

property not previously sold under subsection (1) or (2) by paying

 

the minimum bid to the foreclosing governmental unit. If a city,

 

village, or township does not purchase that property, the county in

 

which that property is located may purchase that property under

 

this section by payment to the foreclosing governmental unit of the

 

minimum bid.

 

     (4) If property is purchased by a city, village, township, or

 

county under subsection (3), the foreclosing governmental unit

 

shall convey the property to the purchasing city, village, or

 

township within 30 days.

 

     (5) All property subject to sale under subsection (2) shall be

 

offered for sale at not less than 2 sales conducted as required by

 

subsection (2). The final sale held under subsection (2) shall be

 

held not less than 28 days after the previous sale under subsection

 


(2). At the final sale held under subsection (2), the sale is

 

subject to the requirements of subsection (2), except that the

 

minimum bid shall not be required. However, the foreclosing

 

governmental unit may establish a reasonable opening bid at the

 

sale to recover the cost of the sale of the parcel or parcels.

 

     (6)  On or before December 1 immediately  Immediately

 

succeeding the date of the sale under subsection (5), a list of all

 

property not previously sold by the foreclosing governmental unit

 

under this section shall be transferred to the clerk of the city,

 

village, or township in which the property is located. The city,

 

village, or township may object in writing to the transfer of 1 or

 

more parcels of property set forth on that list.  On or before

 

December 30 immediately succeeding the date of the sale under

 

subsection (5), all  All property not previously sold by the

 

foreclosing governmental unit under this section shall be

 

transferred to the city, village, or township in which the property

 

is located, except those parcels of property to which the city,

 

village, or township has objected. Property located in both a

 

village and a township may be transferred under this subsection

 

only to a village. The city, village, or township may make the

 

property available under the urban homestead act, 1999 PA 127, MCL

 

125.2701 to 125.2709, or for any other lawful purpose.

 

     (7) If property not previously sold is not transferred to the

 

city, village, or township in which the property is located under

 

subsection (6), the foreclosing governmental unit shall retain

 

possession of that property. If the foreclosing governmental unit

 

retains possession of the property and the foreclosing governmental

 


unit is this state, title to the property shall vest in the land

 

bank fast track authority created under section 15 of the land bank

 

fast track act, 2003 PA 258, MCL 124.765.

 

     (8) A foreclosing governmental unit shall deposit the proceeds

 

from the sale of property under this section into a restricted

 

account designated as the "delinquent tax property sales proceeds

 

for the year ______". The foreclosing governmental unit shall

 

direct the investment of the account. The foreclosing governmental

 

unit shall credit to the account interest and earnings from account

 

investments. Proceeds in that account shall only be used by the

 

foreclosing governmental unit for the following purposes in the

 

following order of priority:

 

     (a) The delinquent tax revolving fund shall be reimbursed for

 

all taxes, interest, and fees on all of the property, whether or

 

not all of the property was sold.

 

     (b) All costs of the sale of property for the year shall be

 

paid.

 

     (c) Any costs of the foreclosure proceedings for the year,

 

including, but not limited to, costs of mailing, publication,

 

personal service, and outside contractors shall be paid.

 

     (d) Any costs for the sale of property or foreclosure

 

proceedings for any prior year that have not been paid or

 

reimbursed from that prior year's delinquent tax property sales

 

proceeds shall be paid.

 

     (e) Any costs incurred by the foreclosing governmental unit in

 

maintaining property foreclosed under section 78k before the sale

 

under this section shall be paid, including costs of any

 


environmental remediation.

 

     (f) If the foreclosing governmental unit is not this state,

 

any of the following:

 

     (i) Any costs for the sale of property or foreclosure

 

proceedings for any subsequent year that are not paid or reimbursed

 

from that subsequent year's delinquent tax property sales proceeds

 

shall be paid from any remaining balance in any prior year's

 

delinquent tax property sales proceeds account.

 

     (ii) Any costs for the defense of title actions.

 

     (iii) Any costs incurred in administering the foreclosure and

 

disposition of property forfeited for delinquent taxes under this

 

act.

 

     (g) If the foreclosing governmental unit is this state, any

 

remaining balance shall be transferred to the land reutilization

 

fund created under section 78n.

 

     (9) Two or more county treasurers of adjacent counties may

 

elect to hold a joint sale of property as provided in this section.

 

If 2 or more county treasurers elect to hold a joint sale, property

 

may be sold under this section at a location outside of the county

 

in which the property is located. The sale may be conducted by any

 

county treasurer participating in the joint sale. A joint sale held

 

under this subsection may include or be an auction sale conducted

 

via an internet website.

 

     (10) The foreclosing governmental unit shall record a deed for

 

any property transferred under this section with the county

 

register of deeds. The foreclosing governmental unit may charge a

 

fee in excess of the minimum bid and any sale proceeds for the cost

 


of recording a deed under this subsection.

 

     (11) As used in this section, "minimum bid" is the minimum

 

amount established by the foreclosing governmental unit for which

 

property may be sold under this section. The minimum bid shall

 

include all of the following:

 

     (a) All delinquent taxes, interest, penalties, and fees due on

 

the property. If a city, village, or township purchases the

 

property, the minimum bid shall not include any taxes levied by

 

that city, village, or township and any interest, penalties, or

 

fees due on those taxes.

 

     (b) The expenses of administering the sale, including all

 

preparations for the sale. The foreclosing governmental unit shall

 

estimate the cost of preparing for and administering the annual

 

sale for purposes of prorating the cost for each property included

 

in the sale.

 

     (12) For property transferred to this state under subsection

 

(1), a city, village, or township under subsection (6) or retained

 

by a foreclosing governmental unit under subsection (7), all taxes

 

due on the property as of the December 31 following the transfer or

 

retention of the property are canceled effective on that December

 

31.

 

     (13) For property sold under this section, transferred to this

 

state under subsection (1), a city, village, or township under

 

subsection (6), or retained by a foreclosing governmental unit

 

under subsection (7), all liens for costs of demolition, safety

 

repairs, debris removal, or sewer or water charges due on the

 

property as of the December 31 immediately succeeding the sale,

 


transfer, or retention of the property are canceled effective on

 

that December 31. This subsection does not apply to liens recorded

 

by the department of environmental quality under this act or the

 

land bank fast track authority act.

 

     (14) If property foreclosed under section 78k and held by or

 

under the control of a foreclosing governmental unit is a facility

 

as defined under section 20101(1)(o) of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.20101, prior to

 

the sale or transfer of the property under this section, the

 

property is subject to all of the following:

 

     (a) Upon reasonable written notice from the department of

 

environmental quality, the foreclosing governmental unit shall

 

provide access to the department of environmental quality, its

 

employees, contractors, and any other person expressly authorized

 

by the department of environmental quality to conduct response

 

activities at the foreclosed property. Reasonable written notice

 

under this subdivision may include, but is not limited to, notice

 

by electronic mail or facsimile, if the foreclosing governmental

 

unit consents to notice by electronic mail or facsimile prior to

 

the provision of notice by the department of environmental quality.

 

     (b) If requested by the department of environmental quality to

 

protect public health, safety, and welfare or the environment, the

 

foreclosing governmental unit shall grant an easement for access to

 

conduct response activities on the foreclosed property as

 

authorized under chapter 7 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.20101 to

 

324.20302 324.20519.

 


     (c) If requested by the department of environmental quality to

 

protect public health, safety, and welfare or the environment, the

 

foreclosing governmental unit shall place and record deed

 

restrictions on the foreclosed property as authorized under chapter

 

7 of the natural resources and environmental protection act, 1994

 

PA 451, MCL 324.20101 to  324.20302 324.20519.

 

     (d) The department of environmental quality may place an

 

environmental lien on the foreclosed property as authorized under

 

section 20138 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.20138.

 

     (15) If property foreclosed under section 78k and held by or

 

under the control of a foreclosing governmental unit is a facility

 

as defined under section 20101(1)(o) of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.20101, prior to

 

the sale or transfer of the property under this section, the

 

department of environmental quality shall request and the

 

foreclosing governmental unit shall transfer the property to the

 

state land bank fast track authority created under section 15 of

 

the land bank fast track act, 2003 PA 258, MCL 124.765, if all of

 

the following apply:

 

     (a) The department of environmental quality determines that

 

conditions at a foreclosed property are an acute threat to the

 

public health, safety, and welfare, to the environment, or to other

 

property.

 

     (b) The department of environmental quality proposes to

 

undertake or is undertaking state-funded response activities at the

 

property.

 


     (c) The department of environmental quality determines that

 

the sale, retention, or transfer of the property other than under

 

this subsection would interfere with response activities by the

 

department of environmental quality.