[Ord. No. 712; Ord. No. 764]
There is hereby established a service charge in lieu of taxes
against projects for elderly persons of low and moderate income, financed
or assisted with a mortgage loan insured by the United States Government
through the Department of Housing and Urban Development (HUD) or assisted
pursuant to the provisions of the state Housing Development Act of
1966, being Act No. 346 of the Public Acts of 1966, as amended (MCLA
§ 125.1401 et seq.).
[Ord. No. 712; Ord. No. 764]
For the purposes of this article, the following words and phrases
shall have the meanings respectively ascribed to them by this section:
The state Housing Development Authority Act, being Act No.
346 of the Public Acts of 1966 of the State of Michigan, as amended.
The State Housing Development Authority.
The rent payable to the owner of a qualified housing project
under the owner's contract for the same including the portion of the
rent payable by the tenant as well as that payable under any governmental
subsidy.
Those persons 62 years of age or older or who otherwise qualify
pursuant to the rules and regulations or practices of the HUD or the
Authority for residency in an elderly housing project.
A specific parcel of property, or divisible portion thereof,
improved for rental to a low or moderate income individual which qualifies
as an elderly housing project under the rules and regulations or standard
practices of HUD or the Authority to the extent it is occupied by
the elderly or held for rental exclusively to the elderly. The unit
occupied by a development manager or caretaker shall be excluded from
the tax abatement granted herein unless the manager or caretaker would
otherwise qualify as a low or moderate income individual under the
rules and regulations or standard practices of HUD or the Authority.
A loan made by the Authority or insured by HUD to the sponsor
for the construction and permanent financing of an elderly housing
project.
Persons or entities which have applied to the Authority or
HUD for a mortgage loan to finance an elderly housing project.
Fuel, public water, public sanitary sewer service and electrical
service.
[Ord. No. 712]
It is hereby determined that the class of housing projects to which the tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be senior citizens' housing for elderly persons as defined in Section 33.1-2 above.
[Ord. No. 712; Ord. No. 764]
That portion of an elderly housing project exclusively and especially
designated for and occupied by elderly persons of low and moderate
income developed and constructed upon a parcel of land within the
City sufficient for the operation of such project (but no larger)
shall be exempt from all property taxation beginning in the year following
commencement of construction and continuing as long as the mortgaged
loan insured by HUD or assisted or financed by the Authority remains
outstanding and unpaid and as long as HUD or the Authority has an
interest in such property, and shall be subject to a service charge
in lieu of such property taxes in an amount equal to 4% of contract
rents of the preceding calendar year, exclusive of utility charges
paid by tenants or the project.
Notwithstanding the foregoing, in no event shall the service
charge, at any time, be less than the property taxes upon the subject
property for the tax year prior to the date when construction was
commenced.
The service charge in lieu of taxes as determined hereunder
shall be payable in the same manner as general property taxes are
payable in the City; except, that the annual payment shall be paid
on or before July 1 of each year. The entire tax collection procedure
provided by the General Property Tax Act[1] shall be effective with respect to such payment including,
but not by way of limitation, the provisions providing for interest
and penalties on late payments, return of delinquent taxes and the
sale of lands for delinquent taxes.
[1]
Editor's Note: See MCLA § 211.1 et seq.
Notwithstanding the provisions of Section 15(a)(5) of the Act[1] to the contrary, the City shall adopt a resolution between
the City and a sponsor of an elderly housing project establishing
a contract to provide tax exemption and accept payments in lieu thereof
naming HUD or the Authority as a third-party beneficiary to such contract.
[1]
Editor's Note: See MCLA § 125.1415a(5).
