[HISTORY: Adopted by the Township Board of the Township of Grosse Ile as indicated in article histories. Amendments noted where applicable.]
[Adopted 3-13-2000 by Ord. No. 282]
The Township acknowledges that it has the authority under the provisions of P.A. 346 of 1966, as amended, to establish a service charge to be paid in lieu of taxes by any class of housing exempt from taxation under this Act. Further, the continuation of the provisions of this article for tax exemption and the service charge in lieu of taxes during the effective period of this article are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance of such tax exemption.
The Township acknowledges that Oakwood Construction Company dfb/a The Oakwood Companies (the "sponsor") has offered, subject to receipt of an allocation under the Low Income Housing Tax Credit (LIHTC), to erect, own, and operate a housing development on certain real property in the Township of Grosse Ile to serve senior persons, and that the sponsor has offered to pay the Township on account of this development an annual service charge in lieu of taxes for that part of the development that meets the criteria established in the Act.
All terms shall be defined as set forth in the State Housing Authority Development Act of 1966, being Public Act 346 of 1966, of the State of Michigan, as amended, except as follows:
- The State Housing Development Authority Act, being Public Act 346 of 1966, as amended.
- ANNUAL SHELTER RENT
- The total collections during an agreed annual period from all occupants of a housing development representing rent or occupancy charge, exclusive of charges for gas, electricity, heat, or other utilities furnished to the occupants.
- The Michigan State Housing Development Authority.
- HOUSING DEVELOPMENT
- A development which contains a significant element of housing for senior persons of low or moderate income and such elements of other housing, commercial, recreational, industrial, communal and educational facilities as the Authority determines improve the quality of the development as it relates to housing for senior persons of low income.
- HOUSING FOR SENIORS
- Housing occupied by a single person who is 55 years of age or older, or housing occupied by a family and/or household in which at least one member is 55 years of age or older and all other members are 50 years of age or older.
- NET SHELTER RENT
- Annual shelter rent minus utility costs.
- A single person who is 55 years of age or older, or a household in which at least one member is at 55 years of age or older, and all other members are 50 years of age or older.
- SENIOR PERSONS OF LOW OR MODERATE INCOME
- Senior persons who meet the eligibility criteria set by the Authority and/or the federal government.
- Persons or entities which have applied to the Authority for, or previously received from the Authority, a mortgage loan to finance a housing development, and includes any successors or assigns of the original sponsor.
- Those costs for fuel, electricity, water, sanitary sewer, and those other expenses which are paid by the housing development.
It is determined that the class of housing developments to which the tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be housing for seniors, which are financed or assisted pursuant to the Act. It is further determined that the project proposed by the sponsor is of this class.
The housing development proposed by sponsor and the property on which it shall be constructed shall be exempt from ad valorem property taxes commencing on the December 31 following the issuance of the certificate of occupancy. The Township, acknowledging that the sponsor and the Authority have established the economic feasibility of the housing development in reliance upon the enactment and continuing effect of this article and the qualification of the housing development for exemption from all ad valorem property taxes and a payment in lieu of taxes as established in this article, and in consideration of the sponsor's offer, subject to the receipt of a mortgage loan from the Authority, to construct, own, an operate the housing development, agrees to accept payment of an annual service charge in lieu of all property taxes. The annual service charge shall be equal to 6% of the gross shelter rents for as long as the sponsor is exempt from taxation under the Act, but never more than 50 years.
Notwithstanding the provisions of § 244-4, the service charge to be paid each year in lieu of taxes for the part of the housing development which is tax exempt and which is occupied by other than low-income persons or families shall be equal to the full amount of taxes which would be paid on that portion of the housing development if the housing development were not tax exempt. The total number of apartments in the development shall not exceed 50, of which not more than 40 apartments will house senior persons of low or moderate income.
[Amended 4-7-2001 by Ord. No. 299]
This article shall remain in effect and shall not terminate so long as the original mortgage remains outstanding and unpaid or the Authority retains any interest in the property, provided that the construction of the Housing Development commences by December 31, 2001, and further provided that the owner is not in default of the terms of this article or any other obligation to the Township. The owner shall be given written notification of any default, along with a thirty-day period in which to correct the default.
The annual service charge in lieu of taxes as determined under this article shall be payable in the same manner as general property taxes to the Township, except that the annual payment shall be paid on or before April 1 of each year.