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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)
For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ACT. The State Housing Development Authority Act, being Public Act 346 of 1966 of the State of Michigan, being M.C.L.A. §§ 125.1401 et seq., as amended.
ANNUAL SHELTER RENT. The total collections during an agreed annual period from or paid on behalf of all low-income persons, as defined herein of the housing development project representing rent or occupancy charges, exclusive of charges for utilities, as defined herein.
AUTHORITY. The Michigan State Housing Development Authority.
CITY. The City of Charlotte, a Michigan municipal corporation.
COMMENCEMENT OF CONSTRUCTION. The commencement of the housing rehabilitation, as defined herein.
HOUSING REHABILITATION PROJECT. The project being rehabilitated at the housing rehabilitation location, consisting of multiple buildings to include qualified low-income residential apartment units including approximately 100 units reserved for low income persons and such recreational, industrial, communal and educational facilities as the sponsor and/or authority determine will improve the quality of the housing rehabilitation project as it relates to housing for low income persons.
HOUSING REHABILITATION LOCATION. 535 Lansing Street, Parcel No. 200-0007-400-081-00, legally described as Com 810.89 ft S of center Sec.7, N 35 deg 26 min 21 sec E 410.00 ft, S 54 deg 33 min 39 sec E 383.98 ft, S 63 deg 20 min 20 sec E 123.78 ft, S 35 deg 26 min 21 sec W 174.89 ft, S 54 deg 33 min 39 sec E 429 ft, SWLY on C/L Lansing Rd 238 ft, N 54 deg 33 min 39 sec W 429 ft, S 35 deg 26 min 21 sec W 16 ft, N 54 deg 33 min 39 sec W 506.31 ft to beg. Sec.7, T2N, R4W, City of Charlotte 1980.
LOW INCOME PERSONS. Persons eligible to move into the housing rehabilitation project pursuant to the Act and the authority.
SPONSOR. Butternut Creek MI Limited Dividend Housing Association Limited Partnership.
UTILITIES. Fuel, water, heat, sanitary sewer service and/or electrical service furnished to the occupants which are paid by the Housing Development Project.
(Ord. 2022-09, passed 1-3-2023; Am. Ord. 2023-03, passed 4-3-2023)
It is determined that the class of housing development to which the tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be family housing which are financed or assisted pursuant to the Act. It is further determined that the proposed sponsor project at this location is of this class.
(Ord. 2022-09, passed 1-3-2023; Am. Ord. 2023-03, passed 4-3-2023)
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