POST-AWARD COMPLIANCE CHECKLIST

Michigan Obsolete Property Rehabilitation Act (OPRA): Compliance Requirements

What you must do after you win this award — administered by Michigan State Tax Commission / Local · Michigan.

3
Total requirements
1
Clawback-risk items
3
Deadline-bound

⚠ Common Disallowed-Cost Pitfalls

  • Financial & Cost Eligibility: Recalculation of tax liability and potential clawback if incorrect baseline valuation is discovered
  • Ongoing Eligibility: Loss of exemption certificate and retroactive property tax assessment if property no longer qualifies
  • Reporting: Application rejection if obsolescence statement is not properly filed

Reporting

  • MediumOne Time

    Upon receiving an exemption application, local government must notify the assessor and all taxing unit representatives in writing, and the assessor must file a written statement of obsolescence.

    Deadline: Upon receipt of application for exemption certificate

    Source: MCL 125.2781 et seq. (as referenced in Michigan.gov OPRA FAQ, items 7-25 and 7-26)

Financial & Cost Eligibility

  • Clawback riskOngoing

    Taxable value of the property must be frozen at the prior year's actual taxable value (before rehabilitation) for the entire duration of the exemption period; no reductions based on former tax-exempt status are permitted.

    Deadline: Applies annually throughout exemption period

    Source: Michigan State Tax Commission Policy Statement; MCL 125.2781 et seq.; 2 CFR 200 principles on property valuation

Ongoing Eligibility

  • HighOngoing

    The property must maintain its location in an established Obsolete Property Rehabilitation District and remain a qualifying commercial or commercial housing facility throughout the exemption period to preserve tax-exempt status.

    Deadline: Continuous condition during exemption term (1-12 years as determined by local unit)

    Source: MCL 125.2781 et seq., PA 146 of 2000; Michigan.gov OPRA FAQ

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This checklist is compiled from official program sources and general grant-management rules for informational purposes. Final compliance obligations are governed by your specific grant agreement and the administering agency — always verify with Michigan State Tax Commission / Local.