The world of property taxes can be daunting, especially for homeowners who feel the pinch of financial strain.
Through the Homeowners Property Exemption (HOPE) program, homeowners can have their current year property taxes reduced or even eliminated. The program can be a significant resource to provide substantial financial relief.
Why the HOPE program matters
By reducing or eliminating property tax obligations, the HOPE program provides essential financial relief, particularly for low-income households that might otherwise face severe economic distress.
For many, the risk of falling behind on property taxes can lead to deeper financial issues, including the potential threat of foreclosure. The HOPE program acts as a safeguard and helps homeowners to stay current on their taxes and protect their homes from being lost due to unpaid tax bills.
Applying for HOPE is often the gateway to accessing other valuable resources, as well. For instance, once approved for the HOPE program, homeowners can also benefit from the Gilbert Family Foundation’s Detroit Tax Relief Fund. This fund offers substantial assistance by completely eliminating delinquent property taxes owed to the Wayne County Treasurer’s Office, provided that homeowners are also enrolled in the Pay as You Stay (PAYS) program.
Willie Donwell, director of HOPE program’s board of review, said the program has helped thousands to maintain homeownership.
“Seniors, retired and disabled individuals are on limited fixed income,” he said. “This allows them to have the mental security that their home is safe from loss due to tax foreclosure.”
He said the HOPE program has been an asset to other services and programs, such as water affordability and home repair.
“It is a direct path to those who need the assistance,” Donwell said.
Who should apply?
Eligibility for the HOPE program is straightforward but requires careful attention to detail. Homeowners must both own and occupy their home as their primary residence.
The chart below breaks down the maximum income and household size for various exemption levels:
| Number in household | Maximum income for full (100% exemption) | Maximum income for partial (75%) exemption | Maximum income for partial (50%) exemption | Maximum income for partial (25%) exemption | Maximum income for partial (10%) exemption |
|---|---|---|---|---|---|
| 1 | $20,120.00 | $21,578.00 | $23,182.00 | $26,098.00 | $39,234.00 |
| 2 | $24,256.00 | $25,833.00 | $27,214.00 | $29.974.00 | $47,299.00 |
| 3 | $26,849.00 | $28,340.00 | $29,832.00 | $32,567.00 | $52,356.00 |
| 4 | $31,200.00 | $32,700.00 | $34,200.00 | $37,200.00 | $60,840.00 |
| 5 | $35,140.00 | $36,897.00 | $38,303.00 | $41,114.00 | $68,523.00 |
| 6 | $40,280.00 | $41,891.00 | $43,502.00 | $46,322.00 | $78,546.00 |
| 7 | $45,420.00 | $47,237.00 | $48,599.00 | $51,325.00 | $88,569.00 |
| 8 | $50,560.00 | $52,077.00 | $53,594.00 | $56,627.00 | $98,592.00 |
What applicants need to provide
To apply for the HOPE program, homeowners must gather and submit several key documents:
- Michigan Department of Treasury Forms 5737 and 5739: These forms are necessary for the application process.
- Proof of Homeownership and Government ID: Valid documentation that verifies homeownership and identity.
- Proof of income: Income documentation for all household members.
- Recent tax returns or exemption affidavits: If not required to file taxes, provide relevant affidavits or returns.
“Ideally, if the application contains all of the required documentation, there will be nothing left to do but wait for the determination,” said Donwell.
The board of review may request additional documents if needed, so be prepared to provide further information upon request.
“If the application is deficient, the applicant will be contacted to cure the issue so that the board can make a fair and impartial decision,” he said.
Application deadline and how to apply
It’s crucial to adhere to the application deadline to receive help from the HOPE program. All applications must be submitted by 4:30 p.m. on Nov. 1, 2024.
Homeowners can submit their applications via the following methods:
- City Hall: Deliver applications in person.
- Online submission portal: Apply conveniently from home.
To ensure you don’t miss out, it’s advisable to apply early.
“We push applicants to apply at the beginning of the year so that if they are approved at the March board of review, it will be reflected on the summer tax bill,” Donwell said.
It’s important to remember that the tax obligation is due until you receive an official determination from the board of review.
Approvals and denials
The board of review only issues decisions three times a year, which is based on state law. The next decision date for 2024 is Dec. 10. No decision will be released before that date.
The board of review decision dates are:
- First Monday in April.
- Tuesday following the third Monday in July.
- Tuesday following the second Monday in December.
Applications are reviewed and approved by the board of review, which ensures that all qualifying homeowners receive the help they need.
“The HOPE applicant will receive a decision letter in the mail, generally within 10 days after the board of review meeting date,” Donwell said.
An adjustment will then be done to the amount of tax owing that is reflective of the HOPE decision. Solid waste will also be reduced by 50% for any approved application.
If a HOPE applicant is denied, the decision letter will contain the reason why.
“If denied, applicants have the right to appeal the decision to the Michigan Tax Tribunal,” Donwell said, adding that the deadline for filing to the MTT is time sensitive.
Easing financial burden
By taking advantage of the HOPE program, eligible homeowners can significantly reduce or eliminate their property taxes, avoid potential foreclosure and access further relief through programs like the Detroit Tax Relief Fund.
“The HOPE program is a critical tool for ensuring that homeowners are not unfairly burdened by property taxes,” Donwell said. “Our goal is to provide relief and support to those who need it most.”
To help with the application process, several Healthy Home resource events will be held to offer support and information:
- Sept. 28 at Northwest Activities Center (18100 Meyers) in Detroit, from 10 a.m. to 3 p.m.
- Oct. 12 at Abayomi Community Development Corporation (24331 Eight Mile Road) Detroit, Mi. 48219
- Oct. 26, at Perfecting Church (7616 Nevada Avenue) in Detroit, from 10 a.m. to 3 p.m.
It’s important not to wait until the last minute. Review your eligibility, gather the necessary documents and apply for the HOPE program before the Nov. 1 deadline.
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