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 of Fremont 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 the preservation of existing housing for persons of low income is a public necessity, and because the City of Fremont 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 of Fremont acknowledges that the Werth Investments, LLC has, on its own behalf, created a new ownership entity named the JPS Fremont Limited Dividend Housing Association Limited Partnership also known as JPS Fremont 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 the assumption of an existing Mortgage Loan from USDA Rural Development to renovate, own and operate housing developments identified as:
1) Apple Ridge Family Apartments, 318 Dewitte Ave., Fremont, MI (32 units) (62-13-34-300-042)
2) Greenfield Manor Apartments, 228 Dewitte Ave., Fremont, MI (26 units) (62-13-34-300-041)
3) Oak Creek Village Apartments, 1101 & 1103 W. Main St., Fremont, MI (32 units) (62-13-34-400-037)
4) Peachtree Village Apartments, 1100, 1102 & 1104 State St., Fremont, MI (20 units) (62-13-34-400-036)
in the City of Fremont to serve citizens of low income. Werth Investements, LLC shall be the General Partner. 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-11-06, 7-18-11)