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Notwithstanding 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 article.
(Ord. 2017-01, passed 2-27-2017; Ord. 2020-09, passed 12-14-2020)
The service charge in lieu of taxes as determined under this article shall be payable in the same manner as general property taxes are payable to the city except that the annual payment will be paid on or before June 30 of the year following the calendar year upon which such service charge is calculated and shall be distributed to the several units levying ad valorem property taxes in the same proportion as for said taxes. Failure to pay the service charge on or before June 30 of each year shall result in the service charge being subject to 1% interest per month until paid. If any amount of the annual service charge or accrued interest shall remain unpaid as of December 31 of any year, the amount unpaid shall be a lien upon the real property constituting the housing development project upon the City Treasurer filing a certificate of non-payment of the service charge, together with an affidavit of proof of service of the certificate of non-payment upon the sponsor with the Eaton County Register of Deeds, and proceedings may then be had to enforce the lien as provided by law for the foreclosure of tax liens upon real property.
(Ord. 2017-01, passed 2-27-2017; Ord. 2020-09, passed 12-14-2020)
This article shall remain in effect and shall not terminate so long as the housing development project continues to be used for low income persons as provided in this article, but not to exceed 50 years; provided, however, if construction of the housing development project does not commence within one year of the Authority's LIHTC April 1, 2017 funding round award date, which is anticipated to be on or about July 1, 2017, or if the sponsor materially changes the scope or purpose of the housing development project with the consent of the city, by and through its representatives, and in accordance with the requirements of law, this article shall automatically expire, terminate and be of no further effect.
(Ord. 2017-01, passed 2-27-2017; Ord. 2020-09, passed 12-14-2020)
The various sections and provisions of this article shall be deemed to be severable, and should any section or provision of this article be declared by any court of competent jurisdiction to be unconstitutional or invalid the same shall not affect the validity of the article as a whole or any section or provision of this article other than the section or provision so declared to be unconstitutional or invalid. It is hereby amplified that it is the city's intent to accept a payment in lieu of taxes only for the purpose of a senior development. If the property is ever used for another purpose, or if this article is unacceptable to any state agencies, this article is declared null and void.
(Ord. 2017-01, passed 2-27-2017; Ord. 2020-09, passed 12-14-2020)
ARTICLE III. BUTTERNUT CREEK PRESERVATION LDHA FAMILY HOUSING DEVELOPMENT
AT 535 LANSING STREET
AT 535 LANSING STREET
This division shall be known and cited as the "City of Charlotte Tax Exemption Ordinance for the Butternut Creek MI Limited Dividend Housing Association Limited Partnership family housing development at 535 Lansing Street.”
(Ord. 2022-09, passed 1-3-2023; Ord. 2023-03, passed 4-3-2023)
(A) It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for its citizens of low to moderate income and to encourage the development of such 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 of 1966, being M.C.L.A. §§ 125.1401 et seq., as amended. The city is authorized by this 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 this Act at any amount it chooses not to exceed the taxes that would be paid but for this Act. It is further acknowledged that such housing is a public necessity, and as the city will be benefitted and improved by such housing, the encouragement of the same by providing certain real estate tax exemption for such housing is a valid public purpose; further, that the continuance of the provision of the chapter, for tax exemption and the service charge in lieu of taxes during the period contemplated in this chapter are essential to the determination of economic feasibility of housing developments which are constructed, rehabilitated and financed in reliance on such tax exemption.
(B) The city acknowledges that the sponsor, as defined in this article, is a limited dividend housing association limited partnership and has offered, subject to receipt of an allocation under the Low Income Housing Tax Credit (LIHTC) Program and a Housing Assistance Payment Contract with the Federal Department of Housing and Urban Development to rehabilitate, own and operate the proposed Housing Rehabilitation Project at 535 Lansing Street in the city to serve low income persons, as defined herein, and that the sponsor has offered to pay the city on account of this housing rehabilitation an annual service charge for public services in lieu of all ad valorem property taxes.
(Ord. 2022-09, passed 1-3-2023)
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