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 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. The city is authorized by said 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 the Act at any amount not exceeding the taxes that would be paid but for the Act. It is further acknowledged that Suntree - Oxford Associates, Limited Dividend Housing Association for persons of low 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 therefor 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 taxes during the period hereinafter contemplated are essential to the determination of economic feasibility of the Housing Development herein referenced which is constructed and financed in reliance thereon. It is further acknowledged that Suntree Oxford Associates, Limited Dividend Housing Association, has offered to pay the city on account of the elderly portion of the housing development an annual service charge for public services in lieu of all taxes on that portion. The city reserves the right to establish an annual service charge for public services in lieu of all taxes for the family portion of the housing development.
(1990 Code, § 1.232)