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This subchapter authorizes and approves an annual service charge in lieu of taxes for residential housing developments that:
(A) Serve low income or moderate income persons (as defined in the State Housing Development Authority Act, Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499, s amended, and this subchapter);
(B) Are financed or assisted by USDA-RD or the Authority in accordance with Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499;
(C) Are located within the city; and
(D) Comply with this subchapter.
(Ord. 334, passed 2-13-2012)
(A) It is acknowledged that it is a proper public purpose of the state and its political subdivisions to provide housing for low income citizens and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499. The city is authorized by Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499 and this subchapter to establish or change the annual service charge to be paid in lieu of taxes by any and all classes of housing exempt from taxation under Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499 at any amount it chooses not to exceed the taxes that would be paid but for Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499. It is further acknowledged that housing for low 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 certain real estate tax exemptions 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 Venture Willow Haven LDHA LP (the “sponsor” as defined in § 30.48) has committed to construct, own, and operate a housing development identified as “Venture Willow Haven LDHA LP” on certain property located on 815 S. Bridge within the city which is legally described in the definition for “housing development” in § 30.48, to serve low income or moderate income persons, and that the sponsor has offered to pay and will pay to the city, on account of the housing development, an annual service charge for public services in lieu of all taxes.
(Ord. 334, passed 2-13-2012)
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ACT. The State Housing Development Authority Act, being Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499, as amended.
ANNUAL SHELTER RENT. The total actual collections during each calendar year from all occupants of a housing development representing rents or occupancy charges, which rental amounts shall be exclusive of charges for gas, electricity, heat, or other utilities furnished to the occupants.
AUTHORITY. The State Housing Development Authority.
CLASS. The Housing Development known as Venture Willow Haven LDHA LP for low income or moderate income persons.
CONTRACT RENTS. As defined by the U.S. Department of Housing and Urban Development in regulations promulgated pursuant to the U.S. Housing Act of 1937, as amended.
FEDERALLY-AIDED MORTGAGE. Any of the following:
(1) A below market interest rate mortgage insured, purchased, or held by the Secretary of the Department of Housing and Urban Development (“HUD”) or United States Department of Agriculture - Rural Development (“USDA-RD”);
(2) A mortgage receiving interest reduction payments provided by the HUD or USDA-RD;
(3) A housing development to which the Authority allocates low income housing tax credits under § 22b of the Act, being M.C.L.A. §§ 125.1404 through 125.1499; or
(4) A mortgage receiving special benefits under other federal law designated specifically to develop low and moderate income housing, consistent with the Act, being M.C.L.A. §§ 125.1404 through 125.1499.
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 to improve the quality of the development as it relates to housing for persons of low income. For the purposes of this subchapter, HOUSING DEVELOPMENT means Venture Willow Haven LDHA LP located on the property legally described as: part of the northeast 1/4 of the northwest 1/4 of Section 29, T5N, R6E, City of Linden, Genesee County, Michigan, being more particularly described as follows: commencing at the north 1/4 corner of Section 29; thence north 89°04’22” west, 1,334.51 feet, along the north line of Section 29, thence south, 196.41 feet, along the west 1/8 line of Section 29 to the point of beginning of the parcel to be described, thence south 88°54’00” east, 550.00 feet; thence south, 108.72 feet parallel with the west 1/8 line of Section 29; thence north 88°54’00” west, 161.45 feet; thence south 49°59’54” west, 221.87 feet; thence 87.66 feet along a curve to the right, said curve having a radius of 217.09 feet, a delta angle of 23°08’12” and a chord of north 71°04’02” west, 87.07 feet; thence 145.79 feet along a curve to the left, said curve having a radius of 290.63 feet, a delta angle of 28°44’29” and a chord of north 70°21’29” west, 144.27 feet to the west 1/8 line of Section 29; thence north, 182.92 feet along the west 1/8 line of Section 29 to the point of beginning. Containing 2.20 acres, more or less.
LOW INCOME OR MODERATE INCOME PERSONS. As defined in the Act, being M.C.L.A. §§ 125.1404 through 125.1499, as amended.
SPONSOR. Person(s) or entities which have applied to the Authority for the tax credits to finance a housing development. For the purposes of this subchapter, the SPONSOR is Venture Willow Haven LDHA LP, a state limited partnership.
TAX CREDITS. The low income housing tax credits made available by the Authority to the sponsor for construction of the housing development by the sponsor in accordance with the Low Income Housing Tax Credit Program administered by the Authority under I.R.C., 26 U.S.C. § 42, as amended.
USDA-RD. The United States Department of Agriculture, Rural Services Division.
UTILITIES. Fuel, water, sanitary sewer service, and/or electrical service, which are paid by the housing development.
(Ord. 334, passed 2-13-2012)
This subchapter shall apply only to the housing development to the extent that the housing development provides housing for low income and moderate income persons and is financed or assisted by USDA-RD or the Authority pursuant to the Act, being M.C.L.A. §§ 125.1404 through 125.1499.
(Ord. 334, passed 2-13-2012)
(A) The city acknowledges that the sponsor and USDA-RD and/or 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 payment of an annual service charge in lieu of taxes in an amount established in accordance with this section. In consideration of the sponsor’s offer 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 that would otherwise be assessed to the housing development under state law.
(B) Effective upon the adoption of this subchapter and subject to the receipt by the city of the “notification of exemption” (or such other similar notification) by the sponsor and/or the Authority, the annual service charge shall be equal to 4% of annual shelter rent.
(C) The housing development, and the property on which it shall be constructed, shall be exempt from all property taxes from and after the commencement of construction of the housing development by the sponsor under the terms of this subchapter.
(Ord. 334, passed 2-13-2012)
Notwithstanding § 30.50, if any portion of the housing development is occupied by other than low income and moderate income persons, the full amount of the taxes that would be paid on those units of the housing development if the housing development were not tax exempt shall be added to the service charge in lieu of taxes.
(Ord. 334, passed 2-13-2012)
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