(A) It is acknowledged that it is a proper public purpose of the state, and its political subdivisions, to provide housing for its citizens of low income, and to encourage the development of the housing, by providing for a service charge in lieu of property taxes, in accordance with the State Housing Development Authority Act of 1966 (Public Act 346 of 1966, as amended, being M.C.L.A. §§ 125.1401 et seq.).
(B) The city is authorized by the Act to establish or change the service charge to be paid in lieu of taxes by any or all classes of housing exempt from taxation under the Act at any amount it chooses not to exceed the taxes that would be paid but for the Act.
(C) It is further acknowledged that the housing for persons of low income is a public necessity, and as the city will be benefitted and improved by the housing the encouragement of the same by providing certain real estate tax exemption therefore is a valid public purpose. Further, that the continuance of the provisions of this subchapter for tax exemption and the service charge in lieu of taxes during the periods hereinafter contemplated are essential to the determination of economic feasibility of housing developments which are constructed and/or rehabilitated and financed in reliance thereon.
(Ord. 174, passed 4-11-2011)