§ 18-4.1.1 PAYMENT SCHEDULE.

   The payment formula for the Court Street Village West Housing Development, which will ensure payment to the City over the life of the project an amount equal to an annual service charge of four percent (4%) of the difference between the contract rents actually collected as set forth in Exhibit A, attached to Ord. 3215, passed September 14, 1992.

(Ord. 3215, passed 9-14-1992)

§ 18-4.2 SAME — DEFINITIONS.

   For the purpose of §§ 18-4.1 through 18-4.8 hereof, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

   ACT. The State Housing Development Act, being Public Act 346 of 1966, of the State of Michigan, as amended.

   AUTHORITY. The Michigan State Housing Development Authority.

   CONTRACT RENTS. As defined by the U.S. Department of Housing and Urban Development in regulations promulgated pursuant to the U.S. Housing Act of 1937, as amended by the Housing and Community Development Act of 1974. In the event a project is not assisted by the HUD Section 8 Program, this term shall mean the total of all rents collected from or paid on behalf of the tenants of the project.

   HOUSING DEVELOPMENT. A development which contains a significant element of housing for persons of low 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 persons of low income.

   HUD. The United States Department of Housing and Urban Development.

   SPONSOR. Persons or entities which have applied to the authority or HUD for a mortgage loan or mortgage loan insurance or other assistance so as to qualify such a loan as an Authority-added mortgage or a federally-added mortgage as defined in the Act.

   UTILITIES. Fuel, water, sanitary sewer service, and/or electrical service which are paid by the development.

   [RESERVED FOR DEFINITION OF CLASS]. Elderly, family, handicapped, etc. to which §§ 18-4.1 through 18-4.8 hereof shall apply.

(Ord. 2621, passed 1-23-1978; Ord. 3010, passed 10-13-1986; Ord. 3808, passed 11-28-2011)

Statutory reference:

   State Housing Development Authority Act of 1966, see MCLA 125.1401 et seq.

§ 18-4.3 SAME — CLASS OF HOUSING DEVELOPMENT.

   It is hereby 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 housing developments of multiple dwellings for elderly persons of low income and persons of low income:

   (a)   Which are financed or assisted pursuant the Act or by HUD.

   (b)   Which are or were located in economically depressed urban renewal project areas;

   (c)   Which are not economically feasible absent the City’s allowing a service charge in lieu of taxes;

   (d)   Which the Authority or HUD will not finance absent the City providing this tax benefit;

   (e)   Which will not provide new jobs; and

   (f)   Whose sponsor negotiates a service charge with the City when the housing development is in the planning stage, prior to the start of construction or renovation.

(Ord. 2621, passed 1-23-1978; Ord. 3010, passed 10-13-1986; Ord. 3055, passed 4-25-1988; Ord. 3118, passed 11-13-1989; Ord. 3809, passed 11-28-2011)

§ 18-4.4 SAME — NEGOTIATION AND ESTABLISHMENT OF ANNUAL SERVICE CHARGE.

   The housing developments described in § 18-4.1 above shall be exempt from all property taxes from and after commencement of construction. The City, acknowledging that the sponsor and the Authority or HUD have established the economic feasibility of the housing developments in reliance upon the enactment and continuing effect of §§ 18-4.1 through 18-4.8 hereof and the qualification of the housing development for exemption from all property taxes and payment of a service charge in lieu of taxes as established herein, and in consideration of the sponsor’s offer, subject to receipt of a mortgage loan from the authority or a federally aided mortgage to construct, own and operate said housing developments, hereby agrees to accept payment of an annual service charge for public services in lieu of all property taxes. The annual service charge for each housing development shall be negotiated between the City and the sponsor and shall be set at a rate which will make the housing development economically feasible, and the rate shall be embodied in an ordinance.

(Ord. 2621, passed 1-23-1978; Ord. 3010, passed 10-13-1986)

§ 18-4.5 SAME — CONTRACTUAL EFFECT.

   Notwithstanding the provisions of Section 15(a)(5) of the act, to the contrary, a contract between the City and the Sponsor with the Authority or HUD, as third party beneficiary thereunder, to provide tax exemption and accept payments in lieu thereof as previously described is in effect by enactment of this ordinance.

(Ord. 2621, passed 1-23-1978; Ord. 3810, passed 11-28-2011)

§ 18-4.6 SAME — PAYMENT OF SERVICE CHARGE.

   The service charge in lieu of taxes as determined hereunder 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 June 1 of each year.

(Ord. 2621, passed 1-23-1978)

§ 18-4.7 SAME — DURATION.

   This ordinance, Sections §§ 18-4.1 through 18-4.7, shall remain in effect and shall not terminate so long as the Authority-aided or federally-aided mortgage loan remains outstanding and the unpaid or HUD mortgage insurance is still operative or the Authority or HUD have any interest in the property; provided, that construction or renovation of a housing development commences within one year from the effective date of this ordinance. The tax incentive provided in §§ 18-4.1 through 18-4.7 shall remain in effect and shall not terminate with respect to any particular housing development so long as the Authority-aided or federally-aided mortgage loan remains outstanding and unpaid for that particular housing development or for so long as HUD or the Authority shall have any interest in the property of a particular housing development. Provided, with respect to the River Village Project. Provided further, that construction or renovation of the housing project commences on or before February 28, 2012. Provided further, that with respect to Court Street Village, construction of the housing project commences on or before October 30, 1990; and that, with respect to Avon Park, that construction of the housing project commences on or before October 30, 1994.

(Ord. 2621, passed 1-23-1978; Ord. 3010, passed 10-13-1986; Ord. 3118, passed 11-13-1989; Ord. 3240, passed 7-26-1993; Ord. 3257, passed 11-22-1993; Ord. 3811, passed 11-28-2011)

§ 18-4.8 SAME — INAPPLICABLE HOUSING DEVELOPMENTS; REVOCATION OF TAX EXEMPTION.

   The tax exemption provided for in MCLA § 125.1415a(1) shall not apply to any housing developments within the boundaries of the City of Flint unless a determination is made, by ordinance, that a particular housing development fits within the same class as described in § 18-4.3 to the extent, if any, that any housing development other than the housing developments described in § 18-4.1 should be construed to be granted a tax exemption and a service charge in lieu of taxes, that the tax exemption is hereby revoked on December 31, 1986, pursuant to MCLA § 125.1415a(5).

(Ord. 3010, passed 10-13-1986)

ARTICLE II. ASSESSMENTS