(A) It is a proper public purpose of the state and its political subdivisions to provide housing for citizens of low and 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 (Public Act 346 of 1966) as amended, being M.C.L.A. §§ 125.1401 et seq. The city is authorized pursuant to the Act to establish, prohibit, or change a service charge to be paid in lieu of taxes by any or all classes of housing exempt from taxation under the Act at any amount it chooses, not to exceed the taxes that would be paid but for the Act. Such housing for persons of low and 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 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 the Housing Development identified in this subchapter.
(B) Olde Mill Limited Dividend Housing Association Limited Partnership (the “Sponsor”) has proposed, subject to receipt of an allocation under the Low Income Housing Tax Credit Program (LIHTC) from the state Housing Development Authority, to renovate, restore, own, and operate a housing development identified as Olde Mill Apartments on property located at 712 N. Maple in the city (the “Project”), to serve persons of low and moderate income, and has offered to pay the city on account of this housing development an annual service charge for public services in lieu of taxes on that part of the development designed for and occupied by persons of low and moderate income.
(Ord. 110613-1, passed 6-13-11)