Poverty Exemption Income Guidelines
March 12, 2024
The guidelines shall include but not be limited to the specific income and asset levels of the claimant and all persons residing in the residence.
To be eligible, a person shall do all of the following on an annual basis:
- Be an owner of and occupy as a principal residence the property for which an exemption is requested.
- File a claim with the City Assessor or Board of Review, accompanied by Federal and State Income tax returns for all persons residing in the residence, or a form 4988, if applicable.
- Produce a valid driver’s license or other form of positive identification if requested.
- Produce a deed, land contract, or other evidence of ownership of the property for which an exemption is requested if requested.
- Meet the Federal poverty income guidelines as defined and determined annually by the United States Office of Management and Budget (or its successor).
- Total household assets, except for the principal residence being claimed, essential household goods, and one motor vehicle, may not exceed one quarter (25%) of the Federal poverty guideline for the entire household. Assets include, but are not limited to real estate, motor vehicles, recreational vehicles and equipment, time shares, certificates of deposit, savings accounts, checking accounts, stocks, bonds, life insurance, retirement funds, antiques and collectibles, etc. Assets do not include basic essential household goods such as furniture, appliances, dishes and clothing. The value of assets will not be reduced by the amount of any indebtedness owed on such assets, or any indebtedness otherwise owed by the applicant or members of the household.
- File forms 5737, Application for MCL 211.7u Poverty Exemption, and 5739, Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty.
The Board of Review shall follow the above stated policy and Federal guidelines in granting or denying an exemption. Updated 2/13/2024
Federal Poverty Level (FPL)
Family size | 2023 income numbers | |
For individuals | $14,580 | |
For a family of 2 | $19,720 | |
For a family of 3 | $24,860 | |
For a family of 4 | $30,000 | |
For a family of 5 | $35,140 | |
For a family of 6 | $40,280 | |
For a family of 7 | $45,420 | |
For a family of 8 | $50,560 | |
For a family of 9+ | Add $5,140 for each extra person |
Potential income and asset sources are (non-inclusive):
Income from all sources Interest and Dividends
Salaries & wages before deductions Pensions
Net receipts from self-employment Supplemental Security Income
Veteran payments Net rental income
Royalties Scholarships & grants
Unemployment compensation Insurance
Worker’s compensation Retirement accounts
Alimony Child support
General assistance IRA/Keogh annuities
Social Security New or reverse mortgages
Cash Stocks and bonds
Checking & savings accounts Investments
Money market accounts Gifts
Assets in trust accounts Deferred compensation
Links to Required State of Michigan Forms:
Form 5737 – Application for MCL 211.7u Poverty Exemption 5737, Application for MCL 211.7u Poverty Exemption (michigan.gov)
Form 5739 – Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty Affirmation of Ownership and Occupancy to Remain Exempt by Reason (michigan.gov)
Form 4988 – Poverty Exemption Affidavit Form 4988, Poverty Exemption Affidavit (michigan.gov)