(CBS DETROIT) – Wayne County Executive Warren C. Evans, Mayor Mike Duggan and Wayne County Treasurer Eric Sabree called on the state legislature to implement a sweeping new approach to assist tens of thousands of Detroiters and Wayne County residents who owe back property taxes avoid foreclosure. The plan builds on steps the City and County have already taken to reduce occupied home foreclosures by 94 percent since 2015.
Draft legislation for the “Pay as You Stay” (PAYS) plan, expected to be introduced this week by Rep. Wendell Byrd (D-Detroit), would help approximately 31,000 Detroit homeowners stay in their homes by dramatically reducing the amount they owe on their back taxes and lowering their monthly payments.
Here’s how the three-part plan works:
1. Once you enroll, all interest, penalties and fees would be eliminated.
2. To reduce an undue burden on homeowners, the balance due would be limited to back taxes only or 10% of a home’s taxable value – whichever is less.
3. The remaining balance would be paid back over three years at zero percent interest.
Homeowners who qualify for a full or partial Property Tax Exemption and enroll in future years would be eligible for the program. To be PTE-eligible, a household with 1 person could not make more than $19,303 per year; a household with 4 people could not make more than $28,671.
Find out more information here.
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