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§ 35.34 TERMINATION.
   Notwithstanding anything contained herein to the contrary, should the sponsor fail to pay the service charge in lieu of taxes granted hereunder or fail to provide the verification of the calculations used to make the payment, the city shall file a certificate of nonpayment upon the sponsor of the housing development and the authority by certified mail, with the Register of Deeds of Gladwin County. Following the expiration of 60 days after service of a certificate of nonpayment upon the sponsor and the authority, if payment and supporting documentation has not been made, the service charge in lieu of taxes granted by this subchapter shall automatically be terminated, retroactive to January 1 of the year for which the service charge in lieu of taxes applies.
(Ord. 237, passed 11-16-98)
§ 35.35 ACKNOWLEDGMENT.
   The city hereby acknowledges receipt of documentation from the authority indicating that the authority's participation with the housing development is limited solely to the allocation of tax credits under the Low Income Housing Tax Credit Program.
(Ord. 237, passed 11-16-98)
TAX EXEMPTION FOR SHELTERHOUSE HOMES AS PROVIDED BY STATE HOUSING DEVELOPMENT ACT
§ 35.45 PURPOSE.
   This subchapter is to provide for a service charge in lieu of taxes for a dwelling project for persons of low to moderate income to be financed or assisted pursuant to the provisions of the State Housing Development Authority Act of 1966, as amended. This subchapter shall be known as the "Affordable Housing Alliance Tax Exemption Ordinance."
(Ord. 297, passed 6-2-08)
§ 35.46 PREAMBLE.
   (A)   It is acknowledged that it is a proper public purpose of the state and its political subdivisions to provide housing for its citizens of low to moderate income and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the State Housing Development Authority Act of 1966 (1966 PA 346, as amended, M.C.L.A. § 125.1401 et seq., M.S.A. § 16.114 (1) et seq.) The city is authorized by this Act to establish or change the service charge to be paid in lieu of 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 housing for persons of low to moderate income is a public necessity, and as the city will be benefitted 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 continuance of the provisions of this subchapter for tax exemption and the service charge in lieu of taxes during the period contemplated in this subchapter are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance on such tax exemption.
   (B)   The city acknowledges that Affordable Housing Alliance (the "Sponsor") has offered, to own and operate a housing development identified as "Shelterhouse Homes" on certain property located at 201 East Grout Street and 415 Beech Street, in the city to serve persons of low to moderate income, and that the sponsor has offered to pay to the city on account of this housing development an annual service charge for public services in lieu of all taxes. The legal description of the specific properties subject to this subchapter is set forth as Attachment A to Ordinance 297.
(Ord. 297, passed 6-2-08)
§ 35.47 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 62 years of age or older or a household in which at least one member is 62 years of age.
   MORTGAGE LOAN. A loan to be made by the authority or Farmers Home Administration or the Department of Housing and Urban Development to the sponsor for the construction and permanent financing the housing development or a mortgage loan insured by HUD.
   PERSONS OF LOW INCOME. Persons and families eligible to move into a housing development.
   SPONSOR. Persons or entities which have applied to the authority for a mortgage loan to finance a housing development or to another governmental entity for a federally-aided loan, as defined by the Act.
   UTILITIES. Fuel, water, sanitary sewer and electrical service which are paid by the housing development.
(Ord. 297, passed 6-2-08)
§ 35.48 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 Shelterhouse Homes is of this class.
(Ord. 297, passed 6-2-08)
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