2011 House Bill 4248 / Public Act 24

Allow Houghton DDA to borrow longer at higher net cost

Introduced in the House

Feb. 15, 2011

Introduced by Rep. Matt Huuki (R-110)

To allow the downtown development authority of the City of Houghton to extend the duration of debt it incurred to pay for certain past spending, thereby reducing its current payments at the expense of imposing greater overall interest costs on city taxpayers over time. Essentially, the bill exempts the city from a 2001 law that only allowed such debt extensions when they leave taxpayers in a better position, not a worse one. Houghton's DDA says it needs the exception because lower tax "captures" due to declining property values and tax collections make it unable to make its current loan payments.

Referred to the Committee on Commerce

Feb. 22, 2011

Reported without amendment

Without amendment and with the recommendation that the bill pass.

March 23, 2011

Passed in the House 102 to 7 (details)

Received in the Senate

March 24, 2011

Referred to the Committee on Economic Development

April 14, 2011

Reported without amendment

With the recommendation that the bill pass.

April 26, 2011

Passed in the Senate 37 to 1 (details)

To allow the downtown development authority of the City of Houghton to extend the duration of debt it incurred to pay for certain past spending, thereby reducing its current payments at the expense of imposing greater overall interest costs on city taxpayers over time. Essentially, the bill exempts the city from a 2001 law that only allowed such debt extensions when they leave taxpayers in a better position, not a worse one. Houghton's DDA says it needs the exception because lower tax "captures" due to declining property values and tax collections make it unable to make its current loan payments.

Signed by Gov. Rick Snyder

April 28, 2011