Legislative Analysis
Phone: (517) 373-8080
ALLOW CITIES TO ESTABLISH SPECIAL ASSESSMENT
http://www.house.mi.gov/hfa
DISTRICT FOR PRIVATE ROAD MAINTENANCE
Analysis available at
Senate Bill 896 (S-1) as passed by the Senate http://www.legislature.mi.gov
Sponsor: Sen. Kevin Hertel
House Committee: Local Government and Municipal Finance
Senate Committee: Local Government
Complete to 12-11-24
SUMMARY:
Senate Bill 896 would amend the Home Rule City Act to allow cities to authorize the creation
of a special assessment district to fund maintenance 1 and improvements for a private road.
A city could make or contract for maintenance or improvement of the private road if its
legislative body passes a resolution to create a special assessment district for that purpose or if
the legislative body receives a petition from a majority of the property owners who own
frontage along the road.
Road maintenance or improvement, and any related assessment, could not begin until the city’s
legislative body creates a special assessment district and assesses the properties within the
district. Costs would be proportionally allocated against property owners based on their share
of the road frontage, and the legislative body would have to provide proper notice of public
hearings for the assessment to all property owners in the special assessment district that will
benefit from the road maintenance or improvement.
The legislative body could authorize the maintenance or improvement as an annual program
that is in place for up to five years, and property owners within the special assessment district
could not be assessed for longer than five years unless a new district and assessment are created
to continue the program.
Proposed MCL 117.5l
BACKGROUND:
According to Senate committee testimony, the city of Algonac has a private road where
residents living along the road would like to form a special assessment district to maintain the
road, but they currently cannot do so under the Home Rule City Act. The bill would allow
those residents to petition the city for a special assessment district to fund maintenance and
repair of that road, which would help residents with planning, engineering, and financing.
1
Maintenance would mean that term as defined in 1951 PA 51 (“Act 51”). Generally speaking, the term refers to
routine maintenance (actions performed on a regular or controllable basis in response to uncontrollable events, such
as snow and ice removal, pothole patching, and emergency repairs) and preventive maintenance (planned actions to
maintain a road’s fundamental condition and delay deterioration, such as sealing and minor treatment projects), but
not major restoration or construction.
House Fiscal Agency Page 1 of 2
FISCAL IMPACT:
Senate 896 would amend the Home Rule City Act to allow the legislative body of a city to, by
resolution, authorize the city to contract for the maintenance or improvement of any private
road in the city by creating a special assessment district.
The bill would have no impact on state costs or revenues. The bill is permissive only and would
affect only those cities that elect to contract for the maintenance or improvement of private
roads in the city and to establish a special assessment district as authorized and defined in the
bill.
If city assessments were sufficient to cover the costs of maintenance services provided, there
would be no net effect on city finances.
Legislative Analyst: Holly Kuhn
Fiscal Analyst: William E. Hamilton
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency SB 896 (S-1) as passed by the Senate Page 2 of 2


Statutes affected:
Substitute (S-1): 117.1, 117.38
Senate Introduced Bill: 117.1, 117.38
As Passed by the Senate: 117.1, 117.38