Advisory Center for Affordable Settlements & Housing

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Poverty Solutions Engagement Series Making Housing More Affordable in USA

Detroit’s exceptionally high tax rate disproportionately burdens lowincome residents, threatening their ability to maintain homeownership and attain longterm financial stability. Michigan law (MCL 211.7u) requires local governing bodies to make a Poverty Tax Exemption (PTE) available for homeowners in poverty who own and occupy their property. By reducing or eliminating property taxes for lowincome homeowners, this policy works to alleviate poverty by decreasing the household tax burden and preventing the devastating financial consequences of property tax foreclosure.

 

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