Homeowners tax relief plan aims for major improvements

I found this article interesting. What are your thoughts on this plan for Lansing? Does Jackson have similar incentives? Would Jackson benefit from similar incentives?

Your Thoughts?

Published February 5, 2008
From Lansing State Journal ]

Mayor's strategy aims to go beyond routine fix-ups


A few years ago, a group of volunteers swooped in upon Denise McCune's Lansing property and did a gamut of home repairs for free.

McCune, 61, said there was no way she could have paid for the repairs on her own.

That is why Lansing Mayor Virg Bernero's proposal to extend tax breaks to typical home-owners has piqued McCune's interest. Bernero said during Wednesday's State of the City address that homeowners could receive 50 percent breaks on the increased taxes from "qualified improvements" and transformations of old, abandoned houses into owner-occupied homes.

"The tax break would be great, but again, you have to come up with the money to do (the improvements)," McCune said. "I don't have the money." And with Michigan's economy struggling, that issue is important.

City officials classify "qualified improvements" as additions and expansions that can cost thousands of dollars. "This goes beyond your general maintenance," acknowledged Bob Johnson, Lansing's Planning and Neighborhood Development director.
Roof repairs and new paint, which do not affect a home's taxable value, would not be considered, he said.

Still, some are applauding the residential tax break program Johnson said will be part of the spring budget negotiations between Bernero and the City Council.

"It's encouraging," said Joan Nelson, director of the Allen Neighborhood Center.

Older housing stock

A significant number of homes on Lansing's east side were built in the first half of the 20th century. "Old housing stock needs constant upkeep," Nelson said.

The mayor's housing task force told Bernero incentives were needed. "The housing stock is fairly aged," said member Lynne Martinez, who also is executive director of the Greater Lansing Housing Coalition. "Many people in the area are economically stressed, and there's a substantial number of rental properties."

Aid for neighborhoods

City officials hope the residential tax break program will inspire families to invest in Lansing and perhaps keep people in the city.

City Council President Brian Jeffries wants more specifics on how Bernero's proposal would work. But he likes the idea that the proposal could benefit and improve city property beyond Lansing's downtown. "This clearly is a program that is directed at the neighborhoods," Jeffries said. "The devil is in the details, and we haven't seen any of the details."