PA 612 of 2006 Frequently Asked Questions

Approved: April 7, 2026

The following frequently asked questions are being provided as a resource for assessors and taxpayers to enhance their understanding of the administration of Public Act 612 of 2006, as amended.

Note: The information contained in these frequently asked questions constitutes a general analysis of one or more statutes and does not constitute legal advice. Because the analysis is based on general statutory requirements, individual circumstances may result in different conclusions. Therefore, individuals may wish to consult legal counsel regarding their specific situation.

1. What is a Charitable Nonprofit Housing Property Exemption?

The Charitable Nonprofit Housing Property Exemption, Public Act 612 of 2006, as amended, exempts residential property taxes on property owned by a charitable nonprofit housing organization for up to five years. The home must be intended to become the principal residence of a low-income person.

2. Who can apply for this exemption?

Only a charitable nonprofit housing organization can apply. This means a charitable nonprofit housing organization whose primary purpose is building or renovating homes to sell or give to a low-income person. To prove this, the organization must include its articles of incorporation with the application.

3. How does a Charitable Nonprofit Housing Organization apply for the exemption?

You can find the application and instructions on the Department of Treasury website at www.michigan.gov/propertytaxexemptions. To apply, the nonprofit must submit a completed application to the State Tax Commission at pte@michigan.gov and include all required documents. Required documents that must accompany the application include the articles of incorporation and a warranty deed or other documentation showing the applicant owns the property.

Complete applications must meet the following requirements:

• The applicant must own the property. The property must be a residential building lot (including one with a structure that will be demolished within one year after it is transferred to the charitable nonprofit housing organization), a single-family home, a duplex, or a building with four or fewer units.
• The applicant must transfer the property to a low-income person to be used as their principal residence after construction or renovation.
• The application includes a narrative description of the property, construction or renovation plans, timelines, and intended use.

4. What is the filing deadline to apply for the exemption? What happens if the deadline is missed?

Applications are due by October 31.  Applications received after that date will be processed based on staff availability.  

5. Who determines if a property qualifies for the exemption?

The State Tax Commission determines whether the property meets the requirements for the Charitable Nonprofit Housing Exemption. 

6. Can an exemption application be denied?

Yes. If the charitable nonprofit organization does not meet all the requirements, the State Tax Commission may deny the application. If denied, you will receive written notice by email, and the local assessor will also be notified.

7. Can I appeal the State Tax Commission’s decision on an exemption?

Yes. A party aggrieved by the issuance, refusal to issue, revocation, transfer or modification of the exemption may appeal a final decision by filing a petition with the Michigan Tax Tribunal, https://www.michigan.gov/taxtrib, within 35 days.  MCL 205.735a(6).

8. What is the term of the exemption?

If the exemption applies to a residential lot, it is valid for five years. If it applies to a home, duplex, or building with four or less units, it is valid for three years. The exemption ends sooner if the charitable nonprofit housing organization transfers ownership of the property or the property is occupied by a low-income person under a lease.

9. What is the effective date of the exemption?

December 31 of the calendar year the State Tax Commission issues the certificate.

10. How will I know if my exemption was approved or denied?

The Department of Treasury will send an email to your organization with a letter from the State Tax Commission. The letter will state whether your exemption was approved or denied, include the certificate number for your application, and confirm the status and length of the exemption. The local assessor will also receive a copy.

11. How is the tax computed for a Charitable Nonprofit Housing Exemption?

It is a 100% tax exemption.

12. Does the Charitable Nonprofit Housing Exemption transfer to a new owner?

No. When the charitable nonprofit housing organization sells the property, the exemption ends. The new owner does not get the exemption.

13. Who qualifies as a “low-income person”?

Low‑income person is someone whose household earns no more than 80% of the statewide median family income in Michigan, and who meets the nonprofit housing program’s eligibility rules.

14. What is the definition of a “principal residence”?

A principal residence is a property exempt under MCL 211.7cc. To qualify under MCL 211.7cc, a person must own, live in, and file a sworn statement saying the residence is their primary home, and that they are not claiming a similar exemption on another property in another state.

15. What is the definition of a property “transfer”?

Under MCL 211.27a, “transferred” means the legal ownership or interest in a property has changed.