(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 C.K. Gardens Limited Dividend Housing Association Limited Partnership (“Sponsor”) has been offered, subject to receipt of a Mortgage Loan from the Michigan State Housing Development Authority (the “Authority”) and an allocation under the Low Income Housing Tax Credit (“LIHTC”) to erect, own, and operate a housing development identified as “C.K. Gardens Senior Apartment on certain real property located South of Lippincott Boulevard, east of Christner Street and west of 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: parcel of land beginning at the northwest corner of Lot 40 Frost Manor, thence S 2 deg 46 min 21 sec E to the southeast corner of Lot 40, thence S 87 deg 11 min 18 sec W 62.77 ft. to the southwest corner of Lot 41, thence S 2 deg 50 min E 737.87 ft., thence N 87 deg 12 min 22 sec E 514.23 ft., thence N 2 deg 48 min 03 sec W 222.03 ft., thence N 87 deg 12 min 23 sec E 427.95 ft., thence N 2 deg 48 min W 156.03 ft, .thence S 87 deg 12 min 14 sec W 427.96 ft., thence N 2 deg 48 min 03 sec W 262.92 ft. to an intermediate traverse line along the south side of Robinson Drain, the point being S 2 deg 48 min 03 sec E 30.11 ft. from the centerline of the drain and a Point “A”, thence along the intermediate traverse line of Robinson Drain on the next 4 courses N 87 deg 47 min 35 sec W 55.16 ft. and N 50 deg 22 min 23 min W 136.09 ft. and N 28 deg 01 min 31 sec W 112.81 ft and N 2 deg 11 min W 105.68 ft. to the north plat line of Frost Manor being S 87 deg 48 min 08 sec W 30 ft. from the centerline of the drain and a point “B”, thence S 87 deg 48 min 08 sec W 249.47 ft. to the point of beginning. The above described parcel contains all of the land encompassed between the intermediate traverse line and the centerline of the Robinson Drain running from Point “A” to Point “B", containing 11.54 acres more or less.
(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.
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.
MORTGAGE LOAN. A loan to be made by the Authority to the sponsor for the construction and/or permanent financing of the Housing Development.
NET SHELTER RENT. Annual Shelter Rent minus utility costs.
SPONSOR. C.K. Gardens Limited Dividend Housing Association Limited Partnership, its successors in interest, which has applied to the Authority for a Mortgage Loan and for an allocation under the LIHTC Program 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 “C.K. Gardens” is of this class.
(D) The Housing Development identified as “C.K. 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, and an allocation under the LIHTC program, 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) 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 or the Housing Development remains subject to income and rent restrictions pursuant to § 42 of the Internal Revenue Code of 1986, as amended, provided that the construction of the Housing Development commences within 1 year from the effective date of the ordinance.
(F) The annual service charge in lieu of taxes as determined under the ordinance shall be payable in the same mariner as general taxes to the city, except that the annual payment shall be paid on or before April 1 of each year.
(G) Not withstanding the provisions of § 15(a)(5) of the Act, to the contrary, a contract between the city and the sponsor with the authority as third party beneficiary under the contract, to provide tax exemption and accept payments in lieu of taxes, as previously described is effectuated by enactment of this ordinance.