The Michigan Supreme Court issued a ruling July 16 in *Jackson v. Southfield Neighborhood Revitalization Initiative*, a class action lawsuit that challenged tax foreclosure procedures and alleged constitutional violations by municipal entities in Southfield.
Louis Jackson, Michael C. Birac and other property owners filed the class action in Oakland Circuit Court against multiple defendants including the Southfield Neighborhood Revitalization Initiative (SNRI), Oakland County, the city of Southfield, and the Southfield Non-Profit Housing Corporation (SNPHC).
The plaintiffs owned real property in Southfield and became delinquent on their property taxes between 2012 and 2014. The Oakland County Treasurer, acting as the foreclosing governmental unit under state law, foreclosed on the plaintiffs' properties under Michigan's General Property Tax Act.
The property owners alleged that the actions of the governmental entities violated their constitutional rights on multiple grounds. Specifically, they claimed violations of procedural due process, substantive due process, and equal protection under both the Michigan and United States Constitutions. The plaintiffs also asserted that the defendants' actions violated the Takings Clauses of both the Michigan Constitution and the Fifth Amendment to the U.S. Constitution.
The case centers on the intersection of municipal tax collection powers, property rights, and constitutional protections for property owners facing foreclosure. Tax foreclosure cases have become increasingly significant in Michigan communities as local governments seek to recover unpaid property taxes while property owners face financial hardship.
The General Property Tax Act provides the statutory framework for how counties can foreclose on properties when owners fail to pay property taxes. Under this law, the county treasurer acts as the foreclosing governmental unit and has authority to initiate foreclosure proceedings against delinquent properties.
The involvement of multiple entities in the case reflects the complex web of organizations involved in municipal revitalization efforts. The Southfield Neighborhood Revitalization Initiative appears to be a key player in local housing policy, while the Southfield Non-Profit Housing Corporation represents the nonprofit sector's role in community development.
Constitutional challenges to tax foreclosure procedures have become more common as property owners argue that the process violates their fundamental rights. Due process claims typically focus on whether property owners received adequate notice and opportunity to be heard before losing their properties. Equal protection arguments often center on whether the foreclosure process treats similarly situated property owners differently.
Takings Clause challenges represent another avenue for property owners to contest foreclosures. These claims argue that the government has taken private property for public use without just compensation, which is prohibited under both state and federal constitutions.
The case was argued on application for leave to appeal on April 10, 2025, before being decided in July. This procedural posture indicates that the case reached the Michigan Supreme Court through the appellate process, suggesting lower courts had previously ruled on the matter.
The Michigan Supreme Court's current composition includes Chief Justice Megan K. Cavanagh and Justices Brian K. Zahra, Richard H. Bernstein, Elizabeth M. Welch, Kyra H. Bolden, Kimberly A. Thomas, and Noah P. Hood. The court's decision in this case will likely provide important guidance for similar disputes throughout Michigan.
The timing of the case is significant given ongoing discussions about property tax policy and municipal finance in Michigan. Local governments rely heavily on property tax revenue to fund essential services, while property owners facing economic hardship may struggle to keep current on tax obligations.
The class action nature of the lawsuit suggests that multiple property owners in Southfield faced similar circumstances regarding tax delinquency and foreclosure proceedings between 2012 and 2014. This period coincided with economic recovery efforts following the 2008 financial crisis, when many property owners struggled with tax payments.
Neighborhood revitalization initiatives have become common tools for municipalities seeking to address blight and promote community development. These programs often involve partnerships between local government, nonprofits, and community organizations to improve housing conditions and economic opportunities.
The case highlights the tension between municipal powers to collect taxes and enforce property maintenance standards versus individual property rights and constitutional protections. Courts must balance the legitimate governmental interests in tax collection and community development against property owners' fundamental rights.
The Michigan Supreme Court's decision in *Jackson* will likely influence how similar cases are handled throughout the state and may prompt legislative or administrative changes to tax foreclosure procedures. The ruling could affect the rights of property owners facing foreclosure and the powers of local governments and revitalization organizations.
Property owners, municipal officials, and housing advocates will closely watch how this decision impacts future tax collection and community development efforts. The case represents an important test of the balance between government authority and individual constitutional rights in the context of local property tax enforcement.