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 income and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the Michigan State Housing Development Authority (MSHDA) Act of 1966 (1966 PA 346, as amended, MCLA Section 125.1401 et seq.). The City is authorized by this Act to establish or change the service charge to be paid in lieu of ad valorem property 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 preservation of existing housing for persons of low income is a public necessity, and because the City will be benefited 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 provisions of this Article for tax exemption and the service charge in lieu of taxes during the period contemplated in this Article are essential to the determination of economic feasibility of housing developments that are constructed, renovated and/or financed in reliance on such tax exemption.
The City acknowledges that the Newaygo County Community Services (NCCS) Center for Nonprofit Housing (CNH) has, on its own behalf, created a new ownership entity named the "Meadow Hills Limited Dividend Housing Association-Limited Partnership" also known as the "Meadow Hills LDHA-LP" for short (hereinafter the "Sponsor"). The Sponsor has offered, subject to receipt of an allocation under the federal Low Income Housing Tax Credit (LIHTC) program and both the assumption of an existing and receipt of a supplemental Mortgage Loan from USDA Rural Development to renovate, own and operate a housing development identified as the Meadow Hills North Family Apartment Development (48 units) on certain property located at 106 Meadow Hills Lane in the City of Fremont to serve citizens of low income. CNH shall be the General Partner and the LIHTC investors represented by the syndicator, Great Lakes Capital Fund for Housing Limited Partnership, shall be the Limited Partners. The Sponsor has offered to pay the City of Fremont on account of this housing development an annual service charge for public services in lieu of property taxes. (Ord. O-07-06, 11-19-07)