The designation of Neighborhood Enterprise Zones (NEZ) is aimed at promoting home ownership and investment in areas where the greatest impact would occur and where improvements are likely to trigger additional investment in adjacent neighborhoods.
Property owners benefit from the NEZ program through lower property taxes. The tax abatements come from the rehabilitation
of existing properties or through new construction
. Once rehabilitation and/or new construction is complete, a Neighborhood Enterprise Zone Certificate is issued by the Michigan State Tax Commission, which serves as the property owner's proof of eligibility for the applicable tax abatement(s).
The City of Grand Rapids has designated five geographic areas as NEZs: North Baxter, Belknap Lookout, Turner Gateway, Heritage Square, and Wealthy Heights. Individual development projects, like Midtown Michigan Street and Eastown Flats, may also be designated as NEZs and be eligible for benefits if three criteria are met: 1) the project is a mixed-use building with retail business space on the street-level floor, 2) the project is rented or leased or available for rent or lease, and 3) the project is located in the qualified downtown redevelopment district. Other individual NEZ development projects include The Lofts on 1359, The Rowe, and The Gateway at Belknap.
For information on how to participate in the NEZ program, please review the documents provided below. For additional information contact:
Economic Development Office
City Hall - 9th Floor
Phone: (616) 456-3462
Application for Neighborhood Enterprise Zone Certificate - This application must be completed to request an NEZ certificate for New Construction, for Rehabilitation of an Existing Structure or when requesting a transfer of an Existing Certificate. The form can be filled out electronically and then printed. Please note that the application must be filed with the City prior to building permit issuance and start of construction.
Frequently Asked Questions (FAQ) (at State of Michigan's website)
Neighborhood Enterprise Zone Act (P.A. 147 of 1992, as amended) - Public Act 147 of 1992, as amended and authorized by the State of Michigan, allows specific local governments to enact Neighborhood Enterprise Zones.
City of Grand Rapids Code, Title V, Chapter 69, Neighborhood Enterprise Zones - The purpose of this chapter of the City Code is to preserve Grand Rapids neighborhoods and to further the maintenance, preservation, improvement and development of housing for all persons regardless of income level.
City Commission Policy for Neighborhood Enterprise Zones (#900-45) - This Policy defines program goals and requirements for the designation of Neighborhood Enterprise Zones within the City of Grand Rapids.
Mathieu-Gast Exemption - Are you planning to do some normal repairs and/or maintenance to your property? If so, the value added to your property by these repairs may qualify for the Mathieu-Gast exemption from property taxes. Please click here to view and download the form and instructions required to exempt normal repairs and maintenance from your property taxes. Should you have any questions regarding this exemption you may contact the Assessor's Office at (616) 456-3081.
Read what satisfied community members have to say about Neighborhood Enterprise Zones.