(A) (1) It is acknowledged that it is a proper purpose of the State of Michigan and its political subdivisions to provide housing for its citizens of low and moderate 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 (1966 Public Act 346, as amended, M.C.L.A. §§ 125.1401 et seq.; M.S.A. §§ 116.114(1) et seq.). The city is authorized by this Act to establish or change the service charge to be paid lieu of taxes by any or all class of housing exempt from taxation under this Act. It is further acknowledged that the housing for persons of low and moderate income is a public necessity, and as the city will be benefit and improved by the housing the encouragement of the same by providing certain real estate tax exemption for such 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 periods contemplated in this ordinance are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance of the ordinance and service charge.
(2) The city acknowledges that Blackberry Creek Village Limited Dividend Housing Association Limited Partnership (“Sponsor”) has been offered, subject to receipt of HUD § 221(d)(4) insurance, to erect, own, and operate a housing development identified as "Blackberry Creek" on certain real property located on South Center Road and 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: beginning at a point distant S. 01°47'06" E. (recorded as S. 00°45'00" E.), 984.87 feet (recorded as 985.00 feet) along the west line of the Section 34 and N. 88°19'19" E. (recorded as N. 89°22'11" E.), 60.00 feet to a point of the Easterly right-of-way line of Center Road (120 ft. R,O.W.); thence N. 88°19'19' E. (recorded as N. 89°
(a) S. 01°46'51" E. (M), S. 00°44'44" E. (R), 1124,00 feet (M), 1123.87 feet (R);
(b) S. 88°12'58" W. (M), S. 89°15'04" W. (R), 299.90 feet (M), 300.00 feet (R);
(c) S. 01.'47'06" E. (M), S. 00°44'44" E. (R), 299.85 feet (M), 300.00 feet (R);
(d) S. 88°12'24" W. (M), S. 89°15'04" W. (R), 478.96 feet (M), 478.93 feet (R); thence N. 01°47'06" W. (M), N. 00°45'00" W. (R), 470.64 feet; thence S. 88°19'19" W., 340.00 feet; thence N. 01°47'06" W. 400.00 feet along the right-of-way line of Center Road to the point of beginning. Parcel contains 24.83 acres.
(B) The following definitions shall apply:
ACT. The State Housing Development Authority Act, being Public Act 346 of 1966, of the State of Michigan, as amended.
ANNUAL RENTS. The total collections during a calendar year from all occupants of a housing development representing rent or occupancy charges, exclusive of 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.
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.
HUD. The Department of Housing and Urban Development of the United States Government.
MARKET RENTS. Defined by the U.S. Department of Housing and. Urban Development in regulations promulgated pursuant to § 221(d)(4) of the U.S. Housing Act of 1937, as amended.
MORTGAGE LOAN. A construction and permanent mortgage loan insured by HUD.
PERSONS OF LOW AND MODERATE INCOME. Persons and families eligible to move into a housing development.
SPONSOR. Persons or entities. which have applied to either the Authority for a mortgage-loan to finance housing development or to another governmental entity for a federally-aided loan, as defined by the Act. The sponsor is Blackberry Creek Limited Dividend Housing Association Limited Partnership, a Michigan Limited Partnership.
UTILITIES. Fuel, water, sanitary sewer service and/or electrical services which are paid by the Housing Development and not the tenants of 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 multiple dwellings for persons of low and moderate income, which are financed or assisted pursuant to the Authority or which are federally aided, as defined by the Act. It is further determined that “Blackberry Creek Village” is of this class.
(D) The Housing Development identified as “Blackberry Creek Village” and the property on which it shall be constructed shall be exempt from all property taxes commencing on the December 31 following the certificate of occupancy. The city, acknowledging that the sponsor and HUD, in the case of a sponsor receiving a federally-aided mortgage loan from HUD, have established the economic feasibility of the Housing Development in reliance upon the enhancement and continuing effect of this ordinance and the qualification of the housing development for exemption from all property taxes and a payment in lieu of taxes as established in this ordinance, will accept payment of an annual service charge for public services in lieu of all property taxes. The annual service charge shall be equal to 5% of the difference between annual rents and utilities for federally aided housing developments. The sponsor shall provide the city with a “Verification of Eligibility for Tax Exemption” form from the Authority to commence the annual service charge.
(E) (1) The service charge in lieu of taxes as determined under the ordinance shall be payable in the same manner as general property taxes are payable to the city, except that the annual payment shall be paid on or before April of each year for the prior year. Sponsor shall provide an audited financial statement and calculation of the service charge along with the annual payment. Sponsor shall also provide on an annual basis a “Verification of Continuing Eligibility of Exemption” form from the Authority.
(2) Notwithstanding the provisions of § 15(a)(5) of the Act, to the contrary, and ordinance adopted by the city with HUD as third party beneficiary under the ordinance to provide tax exemption and accept payments in lieu of taxes as previously described will be effectuated by enactment of the ordinance by the City Council.
(F) (1) This ordinance shall remain in effect and shall not terminate so long as the federally-aided mortgage loan for the housing development remains outstanding or unpaid, or for such period as HUD as any interest in the property through its insurance program; provided, the construction of the Housing Development commences within 1 year from the effective date of this ordinance.
(2) The sponsor shall cause the Authority to provide an annual certification of same as of December 1 of each year.
(3) The lender shall provide the itemized balance of each escrow account.