(A) The village 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 chapter 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 rehabilitate, own and operate the housing development, the village 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 Michigan law.
(1) Effective upon the adoption of Ordinance No. 216 and subject to the receipt by the village 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 5% percent of annual shelter rents plus the legal and other expenses of the village relative to the preparation of this chapter and the exemption provided herein and any future extensions or modification thereof.
(2) The sponsor shall report its annual shelter rents by March 1 of each year. The sponsor shall pay its annual service charge by March 31 of each year.
(B) 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 rehabilitation of the housing development by the sponsor under the terms of this chapter.
(Ord. 216, passed 5-7-12)