Mayor Neeley proposes Homeownership Property Exemption (HOPE) initiative to reduce property tax burden for low-income families

Flint Mayor Sheldon Neeley is sending a resolution to the Flint City Council next week that would allow more low-income Flint residents to qualify for a 50% reduction in their property taxes through the Homeowner Property Exemption (HOPE) program. Mayor Neeley is proposing to raise the income limit to qualify from 150% to 200% of the federal poverty level.

“As we continue to see inflation rise and impact families, we know that low-income Flint residents are hit hard by the rising cost of living,” Mayor Neeley said. “This proposal will allow more families to qualify for reductions to their property tax bills, keeping more money in families’ pockets to meet their daily needs.”

The resolution will be on the Flint City Council’s Finance Committee agenda next Wednesday, August 7. If the resolution advances to the regular city council meeting and is approved, the new income limit would take effect in January 2025.

About the City of Flint’s existing HOPE program

Right now, Flint homeowners whose income is at or below 150% of the federal poverty level can apply for the HOPE program through the City of Flint Assessor’s Office. Applications are due by December 9, 2024 and will be taken before the Board of Review for approval. APPLY ONLINE.

To qualify, Flint homeowners must complete the HOPE application in full. A copy of the homeowner’s recently filed income tax returns or Social Security statement must be submitted with the application. Free income tax assistance is available for qualifying households.

As part of the application, homeowners are required to submit one of the following documents:

• 2024 Federal Income Tax Return (1040) or
• 2024 W2s and 1099s or
• 2024 Michigan Income Tax Return (Ml-1040) or
• 2024 Social Security Benefit Statement (SSA-1099)

Homeowners must also provide these documents with their application:

• 2024 Homestead Property Tax Credit Form (Ml-1040CR)
• Year-end statements for asset verification
• Residents claiming no income must submit a detailed and notarized letter explaining how expenses are being met.
• If bills are paid by a friend or family member or the resident received money from a friend or family member, the resident must provide a signed and notarized letter from that person stating how much financial support they gave.

According to Assessor Stacey Kaake, the City of Flint typically approves about 110 HOPE applications each year through the Board of Review process. Since 1995, the average taxable value increase has been 2.2% per year. For the last two years, it has reached the maximum increase allowed of 5%.

Current Eligibility Guidelines for HOPE Program

Applicants must have no more than $15,000 in assets to be eligible for the HOPE program. For 2024, income must be at or below 150% of the federal poverty level.

Renters are not eligible for the HOPE program. The exemption does not apply to water bills or special assessment fees such as trash and street lighting.

Michigan Poverty Exemption Law

Under Michigan law, all municipalities must provide opportunities for a poverty exemption from property taxes. Every municipality must offer an application process and set eligibility requirements that are no more restrictive than the federal poverty guidelines.

Taxpayers must apply to qualify for reductions to property taxes on their homes every year.