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The City of Hamtramck City Council and the Community & Economic Development Department (CED) implemented multiple Neighborhood Enterprise Zones (NEZ) with the goal to spur development and revitalization in particular City neighborhoods. The program provides a tax incentive for a period of 6-15 years for the development and rehabilitation of residential housing, and encourages owner-occupied housing and new investment in communities. A qualified local unit of government, such as the City of Hamtramck, may designate one or more areas as an NEZ within its boundary.
A Neighborhood Enterprise Zone (NEZ) is a designated area in the city that allows property owners to receive tax abatement for 1) building a new dwelling or 2) renovating their existing dwelling. The creation of NEZs by local governments is allowed under the provisions of the Michigan Neighborhood Enterprise Zone (NEZ) Act – Public Act 147 of 1992, as amended. For more information from the State of Michigan, view this document prepared for assessors and taxpayers: [Frequently Asked Questions – NEZ Act]
To check if your property is in an NEZ, please see the please see the Map of City of Hamtramck NEZs (2025)
Your property is valued at $146,959 or less (True Cash Value) in the 2025 Tax Year. This capped value increases based on the inflation rate each tax year. For the list of Inflation Rate Adjustments for NEZ Rehab Facilities, view the chart linked here: NEZ Act Inflation Rate Adjustment 2025
Currently, the City of Hamtramck has SEVEN (7) NEZs. They are located in the following areas/neighborhoods:
View the Map of City of Hamtramck NEZs, linked on this page, for exact boundaries of the NEZs above.
NO. If you are interested in tax abatement through the NEZ program, you MUST NOT pull permits or begin construction/rehabilitation on your dwelling until AFTER you are granted an NEZ Certificate by the State Tax Commission (STC). If you pull permits or begin work before you are approved by the STC you will be DISQUALIFIED from receiving tax abatement.
As a brief summary, applicants complete the following steps:
These steps are explained in more detail in the City of Hamtramck NEZ Guidelines & Procedures
An application for the Neighborhood Enterprise Zone (NEZ) Certificate can be found at the Michigan Department of Treasury website: www.michigan.gov/propertytaxexemptions. The application form and instructions document from the State of Michigan is linked here: 4775, Application for Neighborhood Enterprise Zone Certificate
Use the State of Michigan’s NEZ Application Checklist to guide you as you prepare your application: NEZ Exemption Application Checklist
Possibly. In order for your Certificate to be granted by the State Tax Commission, your apartment units must be: 1) rented or leased, or available for rent or lease, AND 2) located in a mixed use building with retail business space on the street level floor, AND 3) located in the DDA.
Disclaimer: the information provided on this page is offered as a general guide only for use by City of Hamtramck property owners and residents, and does not constitute a complete overview of the subject legislation.
Community and Economic Development Department – (313) 800-5233 ext. 818
Assessing Department – (313) 800-5233 ext. 820
City Clerk – (313) 800-5233 ext. 821