Cushingberry Improves Neighborhoods by Approving NEZ Certificates

By the Friends of Cushingberry

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       Councilmember  Pro-Tem George Cushingberry Jr. is committed to neighborhoods and, has approved NEZ Certificates for the following properties in Detroit.

July 2015.

Address	# of Units
248 Mack Avenue	4
2658 Porter Street	3
3147 Woodward Ave	3
4335 Lakepointe	1
4119 and 4217 Aretha	2
4228 and 4240 Aretha	2
3926,3943,3955,4142 Aretha	4
11 units Woodward/Brush/Hendrie	11
81 Peterboro	3

What is a Neighborhood Enterprise Zone?

If you live in one of these areas, you may qualify for a tax abatement of up to %50 for 15 years. Since 2006, the City of Detroit began a program offering tax relief to specific geographic areas. Many residents have been interested in this program, but are unsure how to go about it. Here are some frequently asked questions:

1: Who is eligible?

If you purchased your home after January 1, 1997, it is your principal residence, and you have completed $500 of improvements to your home since its purchase, you are likely eligible for a tax cut. Two-family properties are also eligible if it is the owner's principal residence.

2: How much is the reduction?

The NEZ tax abatement adjusts the rate of the City and County operating mills by 50%.* this millage rate varies yearly - therefore the NEZ millage rate varies also. *Only the City and County operating mills are abated - all other homestead mills are applicable.

3: How long does the tax abatement last?

15 years.

4: How do I apply?                       

You must apply in person at the City Assessor's Office, which is located in the Coleman A. Young Municipal Center, Two Woodward Avenue, Room 804, Detroit, MI 48226.

5: Is there a deadline:

Yes. If you want to see tax relief for the next year, you must apply between the dates of April 1 – October 1. For example, if you recently purchased your home, you can apply between April 1 and October 1 of the current year to be eligible for the upcoming tax year. You do not have to reapply every year.

6: What documentation do I need to bring?

You will need to bring your driver's license and property deed.

7: My mortgage company pays my taxes through my escrow account. Do I have to inform them of this change?

It is a wise idea to notify your mortgage company of this program, once you have been approved, to transition the change of escrow more smoothly. The first year, and every eligible year thereafter, they will receive four tax bills: one for the land and one for the house (improvements), each summer and winter. This is due to the land on which your house sits is not eligible for this program, just the house itself. Under normal conditions, they would only receive two tax bills: winter and summer. If your mortgage company understand these bills, it may help avoid further mistakes later on.

8: How will I know when my taxes have been reduced?

You can log into the City of Detroit Assessment Department's Online Property Tax Payment and Information System: (Click Here for the tax on your Property Tax  as Assessed - BSA Software)

There is no charge for this system as long as you set up an account and verify only your own property. Changes will be noted after the next tax billing cycle.

Protecting the Retired after Bankruptcy with the Membership

By Richard C. Clement


Question:

What should Members do to protect their pensions from being exploited?

Answer:

Be sure to monitor board proceedings and monthly statements regarding money management, and health care regarding the clawback feature of your benefits. As a part of the bankruptcy settlement, all that was taken from the retirees will be restored once the balance sheet shows a profit. All Americans must have health care as required by law. Therefore with the clawback feature of the Voluntary Employee Benefits Agreement (VEBA), retirees can ask for things like lower monthly premiums on their Affordable Care Act health insurance, $5.00 flat rate co-pay or, other incentives decided upon by the membership. 

To make this work, you must also go to meetings and participate. If you are not able to attend, you may want to consider having an advocate group or someone who has the time to monitor the accounting on the behalf of the groups. This would fully protect the Police and Fire Fighters who do not pay into Social Security and, General Retirees who do pay into Social Security and got screwed also. Therefore we must think outside the box and, in some cases just totally forget a box and think like a ball.

What is clawback?

One proposal is to use the clawback feature of the VEBA to look at alternative funding for City retirees health care and cost of living changes beyond their control.  With the language of Michigan Senate Bills 4271, 5104, 5439, and 5440, revenue from Provisioning Centers, Safe Testing Facilities and Industrial Hemp development (click here to see a hempcrete home) can be approved to fund retiree health care costs.  States like Colorado and Washington have generated over $300+ million dollars in revenue from Marijuana sales and agricultural Industrial Hemp development.

Products like concrete for bricks and drywall will help build homes and business from Industrial Hemp or the Male Cannabis plant. An investment into new construction projects like redesigning and reopening City Airport for Commercial air traffic is a proposal that will help generate revenue in the form of new business and blight elimination.  Trade schools encouraging public service jobs for youth and people in general who want a trade, job, or career is a sound investment in the future with pension funds. Why? because you need new business and skilled people to pay into the fund and, that requires knowledge and a well-paying job.  The late Mayor Coleman Young once said that solution to progress in Detroit is a well-paying job with a living wage.  This business plan worked for Henry Ford and, now we have to work a new plan for the City of Detroit.

With the recent federal convictions of prior pension board managers, we feel that the eyes of pension participants is of the utmost importance. Councilmember Pro-Tem Cushingberry Jr. welcomes the FBI, GAO, M.L. Elrick, Sharon Epperson, and anyone else who want to inspect the books of the City of Detroit regarding investments and money management. The retirees will never ever have to put up with this again without their knowledge. In other words the City of Detroit is welcoming you to look at the books and, one day it will be online in real time. With liberty and financial justice for all.

Stay tuned.

Delinquent Water Bills

The Detroit Water & Sewerage Department has a policy of shutting off water service when bills are 45 days past due, but the majority of residential balances are over six months old.

Roughly $1 million of the biggest delinquent water bills belong to:

City of Detroit Public Fold Course at Palmer Park (owes $422,295)
VA Hospital (owes $131,096.28)
Joe Louis Arena(owes $80,255.25)
Apartment Building on W.Chicago (owes $71,621.87)
Eastern Market (owes $60,911)
Ford Field (owes $55,803)
Abandoned Homes (owes $47,075.09)
Properties on Coyle (owes $41,200.10)

In addition to these delinquencies, more than $20 million is past due on commercial and industrial accounts. Detroit Public Schools is responsible for about 20% of that figure; they owe $3.8 million.
According to the emergency manger, Kevyn Orr, Detroit was losing an average of 24,000 residents a year between 2000 and 2010. Consequently, many of these previously lived in homes are now vacant. Abandoned properties account for nearly 20% of houses in the city of Detroit, so it is very possible that thousands of accounts represent tenant free homes.

As a resident of the City of Detroit if you cannot afford to pay your water and sewer bill, the Detroit Residential Water Assistance Program (DRWAP)may be of service. To qualify for financial assistance, customers need to:
be a Detroit resident
be faced with shut off or pending shut off of their water or sewer service
be at or below 200-percent of current Federal Government Poverty Levels
need to be living in a single-family dwelling and responsible for paying their water bill on a monthly basis

Please contact the DHS Community Service Center in your area for more information on this program.