[Ord. No. 1033, 12-4-1991]
It is acknowledged that it is a proper public purpose of the
State of Michigan and its political subdivisions to provide housing
for its elderly persons of low and moderate 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 (1966 PA 346, as amended, MCLA § 125.1401
et seq.) ("Act"). The City is authorized by said Act to establish
or charge a 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
it chooses not to exceed the taxes that would be paid but for the
Act.
It is further acknowledged that such housing for elderly persons
of low or moderate income is a public necessity, and as the City will
be benefited and improved by such housing, the encouragement of the
same by providing certain real estate tax exemption therefore is a
valid public purpose; further, that the continuation of the provisions
of this article for tax exemption and the service charge in lieu of
taxes during the period contemplated in this article are essential
to the determination of economic feasibility of housing developments
which are constructed and financed in reliance on such tax exemption.
[Ord. No. 1033, 12-4-1991; Ord. No. 1176, 7-17-1996]
For 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 Public
Act 346 of 1966, of the State of Michigan, as amended.
The Michigan 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.
A person who has a handicap or disability, as the term is
defined pursuant to the Michigan Handicappers' Civil Rights Act (Act
220 of the Public Acts of 1976)[1] as existing or hereafter amended, or such federal acts
as may define such term, as existing or hereafter amended, including
but not limited to Section 504 of the Rehabilitation Act of 1972,
the Federal Fair Housing Act, or the American Disabilities Act.
An elderly person whose household income does not exceed
80% of area median gross income for Ottawa County, Michigan.*
An elderly person whose household income does not exceed
95% of median income for Ottawa County, Michigan.*
A loan made by the Authority or insured by HUD to the sponsor
for the construction and permanent financing of an elderly housing
project.
Fuel, public water, public sanitary sewer service and/or
electrical service.
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*
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Note—Pursuant to Ord. No. 1176, adopted July 17, 1996,
household income and area median gross income shall be determined
in a manner consistent with the determinations of household income
and area median gross income under Section 8 of the U.S. Housing Act
of 1937, as amended (the "program"), and if the program is terminated,
under the program regulations as in effect immediately before termination.
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[1]
Editor's Note: See MCLA § 37.1101 et seq., the Persons
with Disabilities Civil Rights Act.
[Ord. No. 1033, 12-4-1991]
It is determined that the class of housing projects to which the exemption set forth in Section 33.1-24 shall apply, and for which a service charge shall be paid in lieu of taxes, shall be elderly housing projects, which are constructed and established pursuant to the Act, after December 1, 1991. Article I of Chapter 33.1 shall apply to all elderly housing projects constructed prior to December 1, 1991.
[Ord. No. 1033, 12-4-1991]
That portion of an elderly housing project exclusively and especially
designated for and occupied by elderly or handicapped 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 mortgage loan insured by HUD or assisted or financed by
the Authority remains outstanding and unpaid and as long as HUD or
the Authority has any interest in such property. Notwithstanding the
foregoing, an Elderly Housing Project, including units occupied by
the handicapped, shall be subject to a service charge in lieu of property
taxes in the amounts hereinafter set forth which shall be applied
against contract rents of the preceding calendar year, exclusive of
utility charges paid by tenants or by the project;
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Years 1—8:
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2.0%
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Years 9—13:
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3.0%
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Years 14 — thereafter:
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4.5%
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Notwithstanding the foregoing, in no event shall the service
charge, at any time, be less than the property taxes upon the land
only without improvements for the tax year prior to the date when
construction was commenced.
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[Ord. No. 1033, 12-4-1991]
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 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.
[Ord. No. 1033, 12-4-1991]
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).
[Ord. No. 1033, 12-4-1991]
The various sections and provisions of this article shall be
deemed to be severable, and should any section or provision of this
article be declared by any court of competent jurisdiction to be unconstitutional
or invalid, the same shall not affect the validity of this article
as a whole or any section or provision hereof other than the section
or provision so declared to be unconstitutional or invalid.
[Ord. No. 1033, 12-4-1991]
This article shall become effective immediately upon its adoption
and publication by the City Council. All ordinances or parts of ordinances
in conflict herewith are hereby repealed.
