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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:
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. With respect to this subchapter, HOUSING DEVELOPMENT is a 49 unit project, contained in three buildings, together with associated grounds, parking and related facilities.
LIHTC PROGRAM. The Low Income Housing Tax Credit program administered by the Authority under Section 42 of the Internal Revenue Code of 1986, as amended.
LOW TO MODERATE INCOME PERSONS AND FAMILIES. Persons and families eligible to move into a housing project.
MORTGAGE LOAN. A loan that is federally-aided (as defined in Section 11 of the Act) or a loan or grant made or to be made by the Authority to the sponsor for the construction, rehabilitation, acquisition and/or permanent financing of a housing project, and secured by a mortgage on the housing project.
SPONSOR. DeShano Development Corporation and any entity which have applied to the authority for an allocation under the Low Income Housing Tax Credit Program to finance the housing development.
UTILITIES. Fuel, water, sanitary sewer and electrical service which are paid by the housing development.
(Ord. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)
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- Phase II is of this class.
(Ord. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)
The housing development identified as Village North Apartments - Phase II and the property on which it shall be constructed shall be exempt from all ad valorem 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 ad valorem property taxes and a payment in lieu of taxes as established in this subchapter. Therefore, 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, the city agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes. The annual service charge shall be equal to 9% of the Annual Shelter Rents actually collected by the housing development during each operating year.
(Ord. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)
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. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)
(A)
Notwithstanding § 35.64, the service charge to be paid each year in lieu of taxes for part of the housing development which is tax exempt but 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. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)
The annual 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. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)
This subchapter shall remain in effect for a period of 15 years after the certificate of occupancy is obtained from the appropriate officials, so long as the housing development remains subject to income and rent restriction pursuant to Section 42 of the Internal Revenue Code of 1986, as amended.
(Ord. 336, passed 9-18-17; Am. Ord. 342, passed 3-4-19)