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The housing development identified as Shelterhouse Homes 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 acknowledging 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 subchapter, and in consideration of the sponsor's offer, to 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 15% of the annual shelter rents actually collected. This subchapter shall have no retroactive effect and applies to subsequent tax years only.
(Ord. 297, passed 6-2-08)
(A) Notwithstanding § 35.49, 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 portion 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. 297, passed 6-2-08)
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. 297, passed 6-2-08)
The service charge in lieu of taxes as determined under this subchapter shall be payable in the same manner as general property taxes except that the annual payment shall be paid on or before February 28 of each year. The sponsor shall submit a statement from its independent auditor verifying the amounts used to compute the payment are correct as reported. The statement and supporting documents may be from the sponsor's federal tax return.
(Ord. 297, passed 6-2-08)
This subchapter shall remain in effect and shall not terminate so long as the mortgage loan remains outstanding and unpaid or the authority has any interest in the property; provided, that occupancy of the housing development commences within one year from the effective date of this subchapter.
(Ord. 297, passed 6-2-08)
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. 297, passed 6-2-08)
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