[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
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 the 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 therefor 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.
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
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 total collections during an agreed annual period from
all occupants of a qualified housing project representing rent or
occupancy charges, exclusive of charges for gas, electric, or other
utilities furnished the occupants as well as any amount payable under
any governmental subsidy.
The Michigan State Housing Development Authority.
Those persons:
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 the Authority to the extent it is occupied
by the elderly or held for rental exclusively to the elderly.
A person who has a disability, as the term is defined pursuant
to the Persons with Disabilities 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,[2] or the Americans with Disabilities Act.[3]
An elderly person whose household income does not exceed
the definition of a "low-income individual" under the statutes, rules,
and regulations or standard practices of HUD or the Authority.
An elderly person whose household income does not exceed
the definition of a "moderate-income individual" under the statutes,
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.
Fuel, public water, public sanitary sewer service and/or
electrical service.
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
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 January 1, 2013. Article I of Chapter 33.1 shall apply to all elderly housing projects constructed prior to December 1, 1991. Article II of Chapter 33.1 shall apply to all elderly housing projects constructed prior to January 1, 2005. Article III of Chapter 33.1 shall apply to all elderly housing projects constructed after January 1, 2005, and prior to December 31, 2012.
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
(a)
That portion of an elderly housing project exclusively and especially designated for and occupied by elderly or disabled 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 for the term specified in Section 33.1-38.7. Notwithstanding the foregoing, an elderly housing project, including units occupied by the disabled, shall be subject to a service charge in lieu of property taxes in the amounts hereinafter set forth which shall be applied against annual shelter rent of the preceding calendar year, exclusive of utility charges paid by tenants based upon the following schedule:
(b)
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.
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
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.
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
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).
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
The duration of the service charge in lieu of taxes and the
exemption established by this article shall continue as long as a
mortgage loan remains outstanding and unpaid, or the Authority has
any interest in the property, but, in no event, later than 37 years
after the issuance of a certificate of occupancy for the operation
of the project.
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
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.
[8-21-2013 by Ord. No.
1615; 9-18-2013 by Ord. No. 1617]
This article shall become effective immediately upon its adoption
as an emergency ordinance pursuant to Section 5.4 and 5.5 of the Holland
City Charter. All ordinances or parts of ordinances in conflict herewith
are hereby repealed.
