The Michigan Homeowners Assistance Fund (MiHAP) is now available to more Detroiters and other homeowners who have back property tax debt. The state has received over $242 million in American Rescue Plan funds from the federal government to manage the program. Eligible applicants must be homeowners who meet income qualifications and can prove a hardship caused by the COVID-19 pandemic.
Homeowners could receive up to $25,000 for delinquent home-related expenses, including mortgage payments, utilities, and property taxes. Initially, the program only provided property tax assistance going back to 2019, but advocates from Detroit and Wayne County successfully fought to extend it to debt from any year. If you are past due date the real estate property tax date, this information will bring you a nice relief.
A Great Property Tax Relief for Homeowners in Michigan – How to Receive This Benefit
The Wayne Metro Community Action Agency CEO Louis Piszker said that the change was necessary because approximately 6,000 Detroiters had past-due property taxes from 2019 and earlier. The rule change would stabilize everything and would be a game-changer for people. Tax foreclosure and property tax delinquency in Detroit have decreased significantly in recent years, thanks to expanded assistance programs, including the city’s HOPE property tax exemption for low-income homeowners.
According to Congresswoman Rashida Tlaib (D-Detroit), activists should be credited for that success. While there are now many tools available to help people avoid tax foreclosure, getting the word out is crucial. A home is people’s livelihood, and it is the only way to create stability for families. Wayne County Treasurer Eric Sabree has agreed to hold back most owner-occupied homes from this year’s tax foreclosure auction so that owners can access the MiHAP program. The Michigan State Housing Development Authority, which oversees the MiHAP program, encourages homeowners to apply as soon as possible to take advantage of the assistance.
This assistance program is a much-needed lifeline for homeowners who have struggled to keep up with their property taxes during the pandemic. By providing financial relief to those who need it, the MiHAP program is helping to stabilize neighborhoods and prevent tax foreclosure, which can have devastating consequences for families. If you want to apply for this benefit, the first thing to do is to visit your local administration’s office or civic center, and get to know what’s your debt. Next, the officials will guide you through the process, paperwork and more.
What Happen if You Can’t Pay Your Property Taxes on Time in Michigan
In Michigan, property taxes are assessed based on the assessed value of the property and the millage rate of the local government. The assessed value is determined by the local assessor’s office and is equal to 50% of the property’s market value. The millage rate is set by the local government and is used to calculate the property tax rate. For example, if the millage rate is 20 mills and the assessed value of the property is $100,000, the property taxes would be $2,000 (20 mills x $100,000 / 1,000).
Property taxes are typically due twice a year, on July 1st and December 1st. If someone is unable to pay their property taxes on time, they will begin to accrue interest at a rate of 1% per month. Additionally, the local government may also charge penalties and fees for late payment.
If someone falls too far behind on their property taxes, the local government may initiate a tax foreclosure process. This process involves the local government selling the property at a tax auction in order to recoup the unpaid taxes. The property owner will typically have a period of time to pay the unpaid taxes and avoid foreclosure, but if they are unable to do so, the property will be sold at auction.