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SB 896

Real Property - Residential Rental Property - Pet Policy Disclosure (Pet Policy Transparency Act)

2025 Regular Session Introduced by Sara Love

Allows Home Rule City Act cities to form special assessment districts to fund routine maintenance of private roads, with frontage-based assessments, for up to five years.

Approved by the Governor - Chapter 489
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Bill Summary · SB 896

SB 896 — Summary (Private Road Maintenance / Home Rule City Act amendment)

Status: Reported with substitute; referred to second reading (originally introduced June 5, 2024 by Sen. Kevin Hertel). Bill would add MCL 117.5l to the Home Rule City Act (1909 PA 279).

Purpose / Intent

Allow Michigan cities governed by the Home Rule City Act to establish special assessment districts to fund the routine maintenance or preventive maintenance (but not major reconstruction) of private roads inside the city. The change is intended to give residents on private roads a municipal financing option when individual property owners cannot reasonably fund needed maintenance.

Key provisions

  • Authority: The city legislative body may, by resolution, authorize the city to contract for the maintenance or improvement of any private road by creating a special assessment district (proposed MCL 117.5l).
  • Petition trigger: A petition requesting maintenance/improvement may be filed if a majority (>50%) of property owners who own frontage on the private road join the petition.
  • Preconditions: The city may not commence work or levy assessments until it (a) creates the special assessment district and (b) assesses properties within that district after providing proper notice and public hearings to affected property owners.
  • Cost allocation: Costs for maintenance/improvement are allocated among owners in the special assessment district on a pro rata frontage basis (assessments based on each property’s amount of frontage on the private road).
  • Program length limit: A maintenance/improvement program may be authorized on an annual basis for up to five years. A special assessment district may not be assessed for longer than five years unless a new district and new assessment are created to continue the program.
  • Definition of “maintenance”: The bill ties “maintenance” to the definition in section 10c of 1951 PA 51 (MCL 247.660c) — generally routine and preventive maintenance — and excludes major capital rehabilitation or full reconstruction.

Who is affected

  • Property owners whose parcels front private roads in cities that choose to use this authority — they may be assessed for costs.
  • City legislative bodies and municipal staffs — responsible for creating districts, holding required hearings, contracting for work, and administering assessments.
  • Contractors who perform road maintenance work.

Fiscal and procedural implications

  • State fiscal impact: None.
  • Local fiscal impact: Likely minimal; municipalities choosing to act would pass costs through to assessed property owners. Cities may incur minor administrative costs (public hearings, notices, mileage, overhead).
  • Municipal action is permissive (cities are not required to create districts).
  • Assessments require statutory notice and hearing processes before levying; administrative capacity and ordinance or procedure updates will be needed to implement.

Potential effects / considerations

  • Provides a financing mechanism to maintain private roads that otherwise fall to individual owners or informal associations.
  • Shifts payment responsibility to benefiting property owners rather than the general tax base.
  • May raise concerns among some property owners about assessments and project scope; careful notice, transparent cost allocation, and clear definition of maintenance scope will be important.

For the proposed statutory language, see proposed MCL 117.5l (adds authority, petition threshold, frontage-based assessments, five-year program limit, and cross-reference to Act 51’s definition of maintenance).

Compiled from official sources — confirm details with the bill’s official record.

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