(a) Intent.
(1) This article shall be known and cited as the “City of Wayne Tax Exemption Ordinance for Attwood Gardens.” It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for its low-income seniors 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 of Wayne 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 for low income persons and families is a public necessity, and as the City of Wayne will be benefited 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 article for tax exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this article are essential to the determination of economic feasibility of the housing projects that is constructed or rehabilitated with financing extended in reliance on such tax exemption.
(2) The City of Wayne acknowledges that the Sponsor (as defined below) has offered, subject to receipt of an allocation under the LIHTC Program by the Michigan State Housing Development Authority, to construct, own and operate a housing project identified as Attwood Gardens on certain property located on the campus at 5454 Venoy Road in the City of Wayne to serve low-income seniors, and that the Sponsor has offered to pay the City on account of this housing project an annual service charge for public services in lieu of all ad valorem property taxes.
(b) Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them, except where the context clearly indicates a different meaning:
(1) “Authority” means the Michigan State Housing Development Authority.
(2) “Annual Shelter Rent” means the total collections during an agreed annual period from or paid on behalf of all occupants of a housing project representing rent or occupancy charges, exclusive of utilities.
(3) “LIHTC Program” means the Low-Income Housing Tax Credit program administered by the Authority under Section 42 of the Internal Revenue Code of 1986, as amended.
(4) “Low Income” means persons and families eligible to move into a housing project.
(5) “Mortgage Loan” means 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.
(6) “Senior(s)” means individuals who are at least 55 years of age.
(7) “Sponsor” means The Senior Alliance and Wallick Communities and any entity that receives or assumes a mortgage loan.
(8) “Utilities” means charges for gas, electric, water, sanitary sewer and other utilities furnished to the occupants that are paid by the housing project.
(Ord. 2018-07. Passed 9-4-18; Ord. 2020-01. Passed 2-4-2020.)