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(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)
(A) Subject to the provisions of this article, the housing rehabilitation project and the housing rehabilitation location shall be exempt from all property taxes for the period specified in § 64-29. The city acknowledges that the sponsor and the authority have established the economic feasibility of the housing rehabilitation project in reliance upon the enactment and continuing effect of this agreement and qualification of the housing rehabilitation project for the exemption from all property taxes and a payment in lieu of taxes as established in this article. Therefore, in consideration of the sponsor’s offer to rehabilitate, own and operate the housing rehabilitation project, the city has agreed to accept payment of an annual service charge, as defined below, for public services in lieu of all ad valorem property taxes as provided for in § 64-25(C) provided the sponsor furnishes proof, on an annual basis upon request by the city, that the number of qualified low income units in the housing rehabilitation project have not increased, decreased, or been altered in any material form unless the city has otherwise amended the provisions of this article.
(B) The sponsor of the housing rehabilitation project eligible for exemption, or the city as appropriate and necessary, shall file with the local assessing officer a certified notification of the exemption, which shall be in an affidavit form by either the authority, the city and/or the sponsor as appropriate. The completed affidavit form first shall be submitted to the authority for certification by the authority that the housing development project is eligible for the exemption. The sponsor and/or the city shall file or cause to be filed the certified notification of the exemption with the local assessing officer as soon as practically possible.
(C) The annual service charge shall be equal to 10% of the difference between the annual shelter rent actually collected and utilities (the “service charge.”)
(Ord. 2022-09, passed 1-3-2023)
Notwithstanding § 64-25, the service charge to be paid each year in lieu of taxes for any part of the housing development which is tax exempt and occupied by other than low income persons shall be equal to the full amount of the taxes which would be due and payable on that portion of the housing development project if the project were not tax exempt.
(Ord. 2022-09, passed 1-3-2023)
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. 2022-09, passed 1-3-2023)
The service charge in lieu of taxes as determined under the 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 rehabilitation 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. 2022-09, passed 1-3-2023)
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