(a) Pursuant to Act 346, the class of housing developments set forth in Section 890.02 shall be exempt from all property taxes from and after the commencement of construction or rehabilitation and until all of the mortgage loans have been repaid.
(b) Clinton Township, acknowledging that the sponsor or owner has established the economic feasibility of a housing development in reliance upon the enactment and continuing effect of this subchapter and the qualification of the housing development for exemption from all property taxes and a payment in lieu of taxes as established in this chapter, and in consideration of the sponsor's offer, subject to receipt of a loan from HUD to purchase and rehabilitate and operate the housing development, agrees to accept payment of an annual service charge for public services in lieu of all property taxes from and after the start of rehabilitation. The annual service charge shall be equal to four percent of the annual contract rents. This provision shall remain in effect and shall not terminate so long as the mortgage loan or mortgage loans remain outstanding and unpaid or HUD has any interest in the property, provided that rehabilitation of a housing development pursuant to an approved rehabilitation plan must commence and be performed in accordance with the time schedules and deadlines set forth in the approved rehabilitation plan; otherwise the exemption from all property taxes shall terminate as provided herein.
(Ord. 285. Passed 7-30-90.)