The City of Detroit is working to educate faith-based organizations and other nonprofits on how to secure property tax exemptions and avoid foreclosure.
Detroit’s Deputy CFO and Assessor Alvin Horhn said most nonprofits and churches are eligible for property tax exemptions, but must first complete the online application process to secure them.
Among the eligibility requirements, organizations must:
- Own, currently occupy and use the property for the exempt purposes
- Be considered a 501(c)(3) by the Internal Revenue Service
- Pay all back taxes
- Follow state guidelines
Horhn described scenarios where nonprofit organizations have assumed they are exempt from property taxes, ignored bills, and risked foreclosure as a result.
“We (the city) discovered there were a number of nonprofits, specifically churches, that were facing foreclosure in the county,” Horhn told BridgeDetroit. “When we started doing our outreach to them, we realized a lot of them simply thought they were already exempt, they didn’t realize that there was a process that they had to follow to get the exemption.”
While the City of Detroit is responsible for current year property tax billing, if a property tax bill is not paid by the Feb. 28 deadline, the bill is sent to the Wayne County Treasurer’s Office for collection, according to the assessor’s office. If an organization receives both a current year tax bill from the city and a delinquent tax bill from the county, they are not eligible for property tax exemption.
The city is making efforts, Horhn said, to help nonprofits avoid accumulating back taxes so they can remain eligible for the exemption application process. The exemption only applies to property taxes; it does not cover inspection fees or apply for delinquent water charges. Water bills that remain unpaid ultimately transfer to the Wayne County Treasurer for collection.
The tax exemption process and requirements are among the topics being covered at a June 10 Non-Profit Community Summit from 10 a.m. to noon at the Northwest Activities Center, 18100 Myers Rd. The summit is geared toward all nonprofits — from churches, to organizations that deal with veteran support, drug rehabilitation and more. The event will also serve as an opportunity for nonprofits to talk to the city’s Department of Appeals and Hearings to discuss topics such as blight tickets or water bills to avoid collections by the state or county treasurer.
This summit is a follow up to a similar event held in December 2025, and the city hopes to continue holding these events in the future.
“We want to encourage nonprofits because they do a lot of the heavy lifting for people in the strong communities and we want to do everything we can to encourage and help them do that work,” Horhn said. “If you are thinking about opening a nonprofit in the city, we want you to understand that it’s still a business, and there are things that you need to know to make that business successful, and we’re here to walk you through those steps.”
Nonprofits can register for the event here.