URBAN BLIGHT VIOLATIONS
AND RELATED ISSUES
1st Quarter – 2014
SUMMARY
Using Chicago’s model, Detroit and many of Michigan’s other urban centers sought legislation in 2003 to
create administrative hearings bureaus that could more effectively deal with ordinance violations than their
system of municipal civil infraction violations that were heard before a state court. This legislation became law
(House Bill 5216 of 2003/Public Act 316 of 2003) to allow those cities organized under the Home Rule City Act
to establish administrative hearings bureaus that would have the authority to issue violations and impose
sanctions for certain types of ordinance violations, mainly those infractions contributing to blight. The city may
designate only a violation of any of the following types of ordinances as a blight violation: zoning, building or
property maintenance, solid waste and illegal dumping, disease and sanitation, noxious weeds, vehicle
abandonment, inoperative vehicles, vehicle impoundment, and municipal vehicle licensing, right-of-way
signage and an ordinance that is substantially the same as sections 138 to 142 of the housing law of Michigan,
1917 PA 167, MCL 125.538 to 125.542. Currently seven municipalities participate in this program,
including Detroit, Flint, Jackson, Ypsilanti, Warren, Dearborn and Grand Rapids with Saginaw a possible
eighth. A package of bills was introduced last session to increase penalties on blight violations. Similar Senate
Bills 35-39 have been introduced this session by Senator Virgil Smith (D-Detroit), along with a number of bipartisan co-sponsors.
As introduced, this legislation would amend the House Rule City Act to establish additional civil and criminal
penalties that could be imposed on a person who committed a blight violation and failed to pay a fine and costs
of $1,000 or more. The Act allows a city with a population of 7,500 or more in any county, or a city with a
population of 3,300 or more in a county with a population of 2 million or more, to establish an administrative
hearings bureau to adjudicate and impose sanctions for a blight violation. The bill would change 2 million to 1.5
million or more. A hearing officer may impose reasonable and proportionate sanctions consistent with
applicable ordinance provisions and assess costs against a person found responsible for a violation, and must
impose a justice system assessment of $10 for each blight violation determination. Under the bill, if the civil
fine and costs imposed against a person were $1,000 or more and the person did not pay them within 30 days,
the person would be subject to additional penalties/fines.
Additional bills in the package would:
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Amend the Michigan Zoning Enabling Act to allow a city zoning ordinance to provide that a person
would be ineligible for rezoning, site plan approval, variance, or other zoning authorization if the person
were delinquent in paying a fine or costs for a blight violation
Amend the Single State Construction Code Act to allow a city to provide by ordinance that a person
would be ineligible for a building permit, a certificate of use and occupancy, or a variance if the person
were delinquent in paying a fine or costs for a blight violation
Amend the Revised Judicature Act to allow a city to file a garnishment action if a fine or costs were
ordered for a blight violation
Amend the Home Rule City Act to allow a lien against property involved in a blight violation to be
enforced and discharged by the city in the same manner as liens for delinquent taxes.
Amendments made in the Senate Judiciary Committee to relevant bills in the package would exempt GSE and
financial institutions from the heightened criminal penalties and civil sanctions that would be implemented
under the bills. Amendments made in the House Local Government Committee would exempt homeowners
who have filed the property as their principal residence, protecting struggling homeowners.
SCRAP METAL
A bipartisan package of bills was introduced in the House in April on scrap metal and revising regulations
impacting the scrapping industry, HB 4593-4595. As introduced, the package would: modify the information
that is required to be included in purchase transaction records; allow scrap metal dealers to use electronic
record-keeping systems to maintain purchase transaction records; prohibit the buying and selling or certain
types of personal property; and provide for specific methods of payment available to dealers when purchasing
scrap metal. The House Regulatory Reform Committee reported a revised version of the package that
includes HB 4593 and 4595. Prior to the end of 2013 the House passed HB 4593 and 4595 sent them to the
Senate. While in the Senate, HB 4593 was amended to include substitute S-9, which removes the three day
waiting period on select materials. The bills have been sent back to the House for consideration of the
amendment. Further action is expected in 2014.
EFFECT ON CREDIT UNIONS
As introduced, credit unions had significant concerns with the blight violation bills. With regard to foreclosed
properties, credit unions could be subject to heavier civil fines, criminal liability, zoning and building code
sanctions, regardless of fault and whether the problem was transferred from the previous owner. Increased
liabilities if the borrower defaults and indiscriminate penalties for blight violations could increase the costs
associated with mortgages in blighted communities. The MCUL generally supports the scrap metal package,
as it will eventually enact needed reforms that will help deter bad actors and help to dry up the market for illicit
scrapping of foreclosed properties.
MCUL & AFFILIATES POSITION
The MCUL opposed the SB 35-39 as introduced, but are now supportive with the Senate-sponsored carve-out
for financial institutions and GSEs. MCUL is generally supportive of HB 4593 and 4595.
STATUS
SB 35-39 (as amended) have been signed by Governor Rick Snyder and assigned PA 188-192 of 2013. HB
4593 and 4595 were amended in the Senate and are awaiting consideration of the amendment in the House.