Neighborhood Enterprise Zone

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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.

What is a Neighborhood Enterprise Zone (NEZ)?

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: NEZ Act FAQ

How do I know if my property is within in an NEZ?

To check if your property is in an NEZ, please see the Map of City of Hamtramck NEZs (2025)

How do I know if my property qualifies for an NEZ Certificate/tax abatement for rehabilitation?

Your property is valued at $120,000 per less.

What neighborhoods/areas in the City of Hamtramck are within an NEZ?

Currently, the City of Hamtramck has THREE (3) NEZs. They are located in the following areas/neighborhoods:

Dyar-Dequindre neighborhood (West of I-75)
DDA District (Central Business District properties with Joseph Campau addresses)
Oliver-Dorothy-Miller (East of Conant)

The following site(s) are proposed NEZs that City Council will vote to adopt in April 2025, following a duly-noticed public hearing:

Site 2 (Geimer Street, Wyandotte Street, Hewitt Street, Faber Street, Goodson Street, Danforth Street, Andrus Street, Grayling Street, Alice Street, and Denton Street)
Site 3 (Portions of Trowbridge Street and Belmont Street west of Brombach Street)
Site 4 (Portions of Trowbridge Street and Belmont Street east of Buffalo Street)
Site 5 (Roosevelt Street and Goodson Street)

View the Map of City of Hamtramck NEZs, linked on this page, for exact boundaries of the NEZs above.

I live and/or own property in an NEZ. Do I automatically receive a tax abatement?

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.

What do I need in order to receive a tax abatement?

As a brief summary, applicants complete the following steps:

Create a plan for construction/rehabilitation. Must have an accurate project cost and scope of project.
Submit complete application to City Clerk for City staff review.
Attend City Council meeting when application is presented (optional).
If approved by City Council, wait for approval from State Tax Commission.
AFTER receiving approval from the State Tax Commission, pull permits and complete construction.
When construction is completed, file Certificate of Occupancy with the Building Department and receive a mandatory inspection of the property.
Submit Certificate of Occupancy to State Tax Commission, for final review and release of your NEZ certificate.
If approved by the State Tax Commission, your tax abatement begins.

These steps are explained in more detail in the City of Hamtramck NEZ Guidelines & Procedures

How do I apply for an NEZ Certificate?

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 for your convenience: 4775, Application for Neighborhood Enterprise Zone Certificate

Can I receive an NEZ Certificate to build new apartment(s)?

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.