(A) (1) The city acknowledges that it has the authority under the provisions of Public Act 346 of 1966, as amended, to establish a service charge to be paid in lieu of taxes by any class of housing exempt from taxation under this Act. It is further acknowledged that the housing for the elderly low and moderate income is a public responsibility, and the city will benefit and be improved by the housing; and that under provisions of the Act certain real estate tax exemptions for the housing is a valid public purpose. Further, the continuation of the provisions of this ordinance for tax exemption and the service charge in lieu of taxes during the effective period of this ordinance are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance of the tax exemption.
(2) The city acknowledges that Meadowview Gardens Limited Dividend Housing Association Limited Partnership (“Sponsor”) has been offered, subject to receipt of a federally-aided mortgage (as defined below) to erect, own, and operate a housing development identified as “Meadowview Gardens” on certain real property located on South Center Road to serve elderly persons of low and moderate income, and that the sponsor has offered to pay the city on account of this development an annual, service charge in lieu of taxes.
(3) The property is legally described as: the north ½ of the southwest 1/4 of the northwest 1/4 except the north 336 feet. Also except the East 8 rods. Section 22, T7N R7E. The Parcel Identification Numbers are 59-22-100-009 and 59-22100-010.
(B) All terms shall be defined as set forth in the State Housing Authority Development Act of 1966, being Public Act 346 of 1966, of the State of Michigan as amended, except as follows:
ACT. The State Housing Development Authority Act, being Public Act 346 of 1966, as amended.
ANNUAL SHELTER RENT. The total collections during a calendar year from all occupants of a housing development representing rent or occupancy charges, exclusive or charges for gas, electricity, heat, or other utilities furnished to the occupants.
AUTHORITY. The Michigan State Housing Development Authority.
CALENDAR YEAR. The consecutive 12 month period which ends on December 31 of the year immediately preceding the year in which the service charge is to be paid.
ELDERLY. A single person who is 55 years of age or older, or a household in which at least 1 member is at 55 years of age or older, and all other members are 50 years of age or older.
ELDERLY PERSONS OF LOW AND MODERATE INCOME. Elderly persons who meet the eligibility criteria set by the Authority to move into a housing development.
FEDERALLY-AIDED MORTGAGE. Any of the following:
(a) A below market interest rate mortgage insured, purchased, or held by the Secretary of the Department of Housing and Urban Development.
(b) A market interest rate mortgage insured by the Secretary of Housing and Urban Development and augmented by a program of rent subsidies.
(c) A mortgage receiving interest reduction payments provided by the Secretary of the Secretary of the Department of Housing and Urban Development.
(d) A mortgage on a housing development to which the Authority allocates low income housing tax credits under § 22b.
(e) A mortgage receiving special benefits under other federal law designated specifically to development low and moderate-income housing, consistent with the Act.
HOUSING DEVELOPMENT. A development which contains a significant element of housing for elderly person of low and moderate income and such elements of other housing commercial, recreational, industrial, communal and educational facilities as the Authority determines improve the quality of the development as it relates to housing for elderly persons of low and moderate income.
HOUSING FOR THE ELDERLY. Housing occupied by a single person who is 55 years of age or older, or housing occupied by a family and/or household in which at least one member is at 55 years of age or older, and all other members are 50 years of age or older.
NET SHELTER RENT. Annual shelter rent minus utility costs.
SPONSOR. Meadowview Gardens Limited Dividend Housing Association Limited Partnership, 30100 Telegraph Road, Suite #426, Bingham Farms, MI 48025, its successors in interest, which has applied to the Authority for a Mortgage Loan to finance Housing Development.
UTILITIES. Those costs for fuel, electricity, water, sanitary sewer, and those other expenses which are paid by the Housing Development.
(C) It is determined that the class of housing developments to which the tax exemption shall apply and for which a service charge shall be paid in lieu of the taxes shall be housing for elderly persons of low and moderate income, which are financed or assisted pursuant to the Act. It is further that “Meadowview Gardens” is of this class.
(D) The Housing Development identified as “Meadowview Gardens” and the property on which it shall be constructed shall be exempt from ad valorem property taxes commencing on the December 31 following the issuance of the certificate of occupancy. The city, acknowledging that the sponsor and the authority have established the economic feasibility of the Housing Development in reliance upon the enactment and continuing effect of this ordinance and the qualification of the Housing Development for exemption from all ad valorem property taxes and a payment in lieu of taxes as established in this ordinance, and in consideration of the sponsor’s offer, subject to the receipt of a mortgage loan from the Authority, to construct, own, and operate the housing development, agrees to accept payment of an annual service charge in lieu of all property taxes. The annual service charge shall be equal to 5% of the net shelter rents.
(E) The sponsor agrees to provide transportation for the residents of Meadowview Gardens.
(F) This ordinance shall remain in effect and shall not terminate so long as the original mortgage remains outstanding and unpaid or the Authority retains any interest in the property.
(G) The annual service charge in lieu of taxes as determined under the section shall be payable in the same manner as general taxes to the city, except that the annual payment shall be paid on or before April 1 of each year.