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§ 35.27 DEFINITIONS.
   All terms shall be defined as set forth in the State Housing Development Authority Act of 1966, of the State of Michigan, as amended, except as follows.
   ACT. The State Housing Development Authority Act, being Public Act 346 of 1966, of the State of Michigan, as amended.
   ANNUAL SHELTER RENT. The total collections during a calendar year from all occupants of a housing development representing rent for occupancy charges, exclusive of charges for gas, electricity, heat or other utilities furnished to the occupants.
   AUTHORITY. The Michigan State Housing Development Authority.
   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 persons of low income.
   ELDERLY. A single person who is 55 years of age or older or a household in which at least one member is 55 years of age and all other members are 50 years of age or older.
   SPONSOR. Persons or entities which have applied to the Authority for an allocation under the Low Income Housing Tax Credit Program to finance a Housing Development.
   UTILITIES. Fuel, water, sanitary sewer and electrical service which are paid by the Housing Development.
(Ord. 237, passed 11-16-98)
§ 35.28 CLASS OF HOUSING DEVELOPMENTS.
   It is determined that the class of housing developments to which the tax exemption shall apply and for which a service charge shall be paid in lieu of taxes shall be housing developments for elderly persons and persons and families of low to moderate income, which are financed or assisted pursuant to the Act. It is further determined that Village North Apartments is of this class.
(Ord. 237, passed 11-16-98)
§ 35.29 ESTABLISHMENT OF ANNUAL SERVICE CHARGE.
   The housing development identified as Village North Apartments and the property on which it shall be constructed shall be exempt from all property taxes from and after the year the project is placed in service as evidenced by a certificate of occupancy from the appropriate public officials. The city acknowledges that the sponsor and the authority have established the economic feasibility of the 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 an allocation under the LIHTC program, to construct, own and operate the housing development, agrees to accept payment of an annual service charge for public services in lieu of all property taxes. The annual service charge shall be equal to 8% of the annual shelter rents actually collected through the calendar year 2013, and 9% of the annual shelter rents actually collected for any year subsequent to 2014.
(Ord. 237, passed 11-16-98; Am. Ord. 325, passed 4-7-14)
§ 35.30 LIMITATION ON THE PAYMENT OF ANNUAL SERVICE CHARGE.
   (A)   Notwithstanding § 35.29, the service charge to be paid each year in lieu of taxes for part of the housing development which is tax exempt and which is occupied by other than low income persons or families shall be equal to the full amount of the taxes which would be paid on that protion of the Housing Development if the Housing Development were not tax exempt.
   (B)   The term "low income persons or families" as herein shall be the same meaning as found in Section 15 (a)(7) of the Act.
(Ord. 237, passed 11-16-98)
§ 35.31 CONTRACTUAL EFFECT OF SUBCHAPTER.
   Notwithstanding the provisions of Section 15 (a)(15) of the Act, to the contrary, a contract between the city and the sponsor with the authority as a 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 subchapter.
(Ord. 237, passed 11-16-98)
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