(A)
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 to moderate income persons and families and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the Act. 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 of low to moderate income persons and families is a public necessity, and as the city will be benefitted and improved by such housing, the encouragement of the same by providing real estate tax exemption for such housing is a valid public purpose. It is further acknowledged that the continuance of the provisions of this subchapter for tax exemption and the service charge in lieu of all ad valorum taxes during the period contemplated in this subchapter are essential to the determination of economic feasibility of the housing projects that are constructed or rehabilitated with financing extended in reliance on such tax exemption.
(B) The city acknowledges that sponsor (as defined below) has offered, subject to receipt of an allocation under the Low Income Housing Tax Credit (LIHTC) Program by the Michigan State Housing Development Authority, to construct, own, and operate a housing development identified as Village North Apartments - Phase II on certain property located at 559, 565 and 569 Clendening Road, in the city to serve persons and families 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 ad valorem property taxes.
(Ord. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)