The NEZ program has been very successful in assisting the City with its neighborhood revitalization goals.  With the NEZ incentive and other programs in place, the City was able to stimulate the construction of new homes in old neighborhoods.  In 1992, people were reluctant to build a new house at a cost of approx $160,000 in an area of $40,000-$50,000 homes.  The NEZ program provided an incentive to people willing to risk building a new house in an old neighborhood.  This incentive, combined with aggressive code enforcement, acquisition of substandard housing, and other investments in parks and streets, had a dramatic “ripple effect.”  As the eyesore properties were eliminated, the remaining lots were either sold for new homes or to adjacent property owners for larger side yards and off-street parking.  Better maintenance and new homes, less density and more open space, all led to greater investments.  And as the NEZ program improved in popularity and the neighborhoods improved, the sale prices for City lots increased, as did the quality of new homes.   Some specific program highlights are as follows: 

• The NEZ incentive reduces the property tax millage on a homestead property from the City’s homestead millage rate of 48 mills to approximately 17 mills (1/2 of the statewide homestead millage).  On a $200,000 home, the program reduces property taxes from $4,800 annually to $1,700 annually (a savings of  $3,100 to the homeowner).
   

• As of May 2004, a total of 100 new homes have been constructed in the three areas with NEZ certificates (with more than 150 homes being demolished). 

For additional information on the City’s NEZ program,
please click on the following link: Neighborhood Revitalization Programs