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No Legislative Relief in 2010 for Delinquent Special Assessment Bonds

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FOCUS: Bond Counsel Corner
John M. Kamins
Foster Swift Municipal Law News: MTA Edition
January 2011

This updates our July 2010 Bond Counsel Corner article entitled "Pending Legislative Relief for Delinquent Special Assessment Bonds," which reported on a bill then-pending in the Michigan Legislature (HB 6181). The bill encountered controversy, did not progress, and died in the 2009-2010 session of the Legislature that ended in December. The bill was intended to create a State-funded Delinquent Special Assessment Revolving Loan Fund from which money could be loaned to eligible local government units to assist them to make payments on certain troubled special assessment bonds. This remains a serious problem for municipalities with troubled or failed special assessment districts, and so a similar new bill may be introduced in the new legislative session.