Charter Township of Meridian
Ingham County
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Cross references: Any ordinance levying, imposing or otherwise relating to taxes saved from repeal, § 1-12(a)(13); any ordinance granting a tax exemption for specific property saved from repeal, § 1-12(a)(14); administration, ch. 2; finance, § 2-81 et seq.; licenses, permits, and miscellaneous regulations, ch. 38.
State law reference: General Property Tax Act, MCL 211.1 et seq.
[1]
State law reference: Tax exemption for certain projects, MCL 125.1415a.
[Code 1974, § 114-1; Ord. No. 2003-03, 2-4-2003; Ord. No. 2003-06, 4-15-2003]
The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
ANNUAL SHELTER RENTS
The total collections during an agreed annual period from all occupants of a housing project representing rent or occupancy charges exclusive of charges for gas, electricity, heat or other utilities furnished to the occupants.
AUTHORITY-AIDED MORTGAGE
A mortgage made, held, purchased, or assisted by the authority.
AUTHORITY
The state housing development authority.
ELDERLY
A single person whose age is within the limits as specified in § 11 of the Michigan State Housing Development Authority Act of 1966, being MCL § 125.1411.
ELDERLY PERSONS OF LOW AND MODERATE INCOME
Elderly persons who meet the eligibility criteria set by the Authority and/or the federal government.
FEDERALLY AIDED MORTGAGE
A below-market-interest-rate mortgage insured, purchased, or held by the secretary of the department of housing and urban development; a market interest rate mortgage insured by the secretary of the department of housing and urban development and augmented by a program of rent supplements; a mortgage receiving interest reduction payments provided by the secretary of the department of housing and urban development; a mortgage on a housing project to which the authority allocates low income housing tax credits under § 22b of Public Act No. 346 of 1966 (MCL § 125.1422b); or a mortgage receiving special benefits under other federal law designated specifically to develop low and moderate income housing, consistent with Public Act No. 346 of 1966 (MCL § 125.1411 et seq.).
HOUSING DEVELOPMENT
A development that contains a significant element of housing for persons of low or moderate income and elements of other housing, commercial, recreational, industrial, communal, and educational facilities that the authority determines improve the quality of the development as it relates to housing for persons of low or moderate income.
HOUSING PROJECT
Any of the following:
(1) 
Residential real property developed or to be developed or receiving benefits under Public Act No. 346 of 1966 (MCL § 125.1411 et seq.).
(2) 
A specific work or improvement either for rental or for subsequent sale to an individual purchaser undertaken by a nonprofit housing corporation, consumer housing cooperative, limited dividend housing corporation, mobile home park corporation, or mobile home park association pursuant to or receiving benefits under Public Act No. 346 of 1966 (MCL § 125.1411 et seq.) to provide dwelling accommodations, including the acquisition, construction, or rehabilitation of lands, buildings, and improvements.
(3) 
Social, recreational, commercial, and communal facilities that the authority finds necessary to serve and improve a residential area in which housing pursuant to subsection (1) or (2) of this section is located or is planned to be located, thereby enhancing the viability of the housing.
HUD
The Department of Housing and Urban Development of the United States Government.
LIMITED DIVIDEND HOUSING CORPORATION
A corporation incorporated or qualified pursuant to the corporation laws of this state and Chapter 6 of the State Housing Development Authority Act of 1966, being MCL § 125.1481 through 125.1486 and a limited dividend housing association organized and qualified pursuant to Chapter 7 of the State Housing Development Authority Act of 1966, being MCL § 125.1491 through 125.1496, and any future amendments or replacements.
LOW INCOME OR MODERATE INCOME PERSONS
Families and persons who meet the eligibility criteria defined in § 11 of the State Housing Development Authority Act of 1966, being MCL § 125.1411 or as defined by the authority on the basis of specific conditions in Meridian Township.
MORTGAGE LOAN
A loan to be made by the authority or farmers home administration or the United States Department of Housing and Urban Development to the sponsor for the construction and permanent financing of the housing development or a mortgage loan insured by HUD.
NONPROFIT HOUSING CORPORATION
A nonprofit corporation incorporated under the corporation laws of this state and Chapter 4 of the State Housing Development Authority Act of 1966, being MCL § 125.1461 through 125.1465, and any future amendments or replacements.
SPONSOR
Persons or entities which have applied to either the authority for a mortgage loan to finance a housing development or to another governmental entity for a federally aided loan, as defined by Public Act No. 346 of 1966 (MCL § 125.1411 et seq.).
UTILITIES
Fuel, water, sanitary sewer services, and/or electrical services which are paid by the housing development.
The above terms and any other terms used in this article shall be as defined, amended, or established from time to time by § 11 of Public Act No. 346 of 1966 (MCL § 125.1411).
Cross reference: Definitions generally, § 1-2.
[Code 1974, § 114-2; Ord. No. 2003-06, 4-15-2003]
The tax exemption provided to an owner of a housing project financed with a federally-aided or authority-aided mortgage or advance or grant from the authority, pursuant to the terms of Subsection 15a(1) of the Michigan State Housing Development Authority Act of 1966, being MCL § 125.1415a(1), shall not apply to any housing project, or portion thereof, located within the boundaries of the Township, which is owned by a consumer housing cooperative, mobile home park corporation, or mobile home park association, as defined in § 11 of the Michigan State Housing Development Authority Act of 1966, being MCL § 125.1411.
[Code 1974, § 114-3; Ord. No. 2003-03, 2-4-2003; Ord. No. 2003-06, 4-15-2003; amended by Ord. No. 2019-14, 9-17-2019]
The tax exemption shall apply to and a service charge shall be paid in lieu of taxes by a housing project financed with a federally aided or authority-aided mortgage or advance or grant from the authority for elderly low-income or moderate-income persons or other low-income or moderate-income persons when:
(1) 
The housing project is owned by a nonprofit housing corporation or limited dividend housing corporation; and
(2) 
The housing development is, prior to initial occupancy, subject to covenants running with the land which require that it be maintained as housing for elderly low- or moderate-income persons or other low-income or moderate-income persons the remainder of its economic life.
[Code 1974, § 114-4; Ord. No. 2003-06, 4-15-2003]
The class of housing projects described in § 66-28 and the property on which they will be constructed shall be exempt from all ad valorem property taxes from and after the commencement of construction. In lieu of such taxes the owner of the housing project shall pay to the Charter Township of Meridian an annual service charge for public services. Except as provided herein, the annual service charge shall be equal to 5% of the annual shelter rents obtained from the project. The service charge shall not exceed the ad valorem taxes that would have been paid on the property on which the project is located for the tax year before the date when construction or rehabilitation of the project was commenced.
[Code 1974, § 114-5; Ord. No. 2003-06, 4-15-2003; amended by Ord. No. 2019-14, 9-17-2019]
A resolution of the Township Board granting tax exempt status, as provided in this article, shall be adopted for a housing project qualified under the terms and provisions of this article. Payment of a service charge in lieu of tax exemption will be effectuated by adoption of a resolution by the Township Board.
[Code 1974, § 114-6]
The service charge in lieu of taxes as determined under this article shall be payable in the same manner as general property taxes are payable to the Township except that the annual payment shall be paid on or before July 1 of each year.
[Code 1974, § 114-7; Ord. No. 2003-06, 4-15-2003]
Tax exempt status granted by the Township Board shall be forfeited unless construction of the housing project to which such status is granted is commenced within one year from the effective date of the Township Board resolution approving that status. The tax exempt status of a housing project approved by resolution of the Township Board shall remain in effect and shall not terminate while the federally-aided or authority-aided mortgage or advance or grant from the authority is outstanding.