[Code 1992, § 28-201; 11-10-1997 by Ord. No. 1138]
The City acknowledges that Partnership 16 Limited Dividend Housing
Association Limited Partnership (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 identified as Golden
Crest Apartments on certain property located in the block bound by
Cleveland, 22nd, Nern and 24th Streets in the City to serve persons
of low income and that the sponsor has offered to pay the City on
account of this housing development an annual service charge for public
services in lieu of all taxes.
[Code 1992, § 28-202; 11-10-1997 by Ord. No. 1138]
All terms used in this division shall be defined as set forth
in the State Housing Development Authority Act of 1966, Public Act
No. 346 of 1966, except that the following words, terms and phrases,
when used in this division, shall have the meanings ascribed to them
in this section, except where the context clearly indicates a different
meaning:
The State Housing Development Authority Act, Public Act No.
346 of 1966 (MCL 125.1401 et seq.).
The total collections during an agreed annual period from
all occupants of a housing development representing rent or occupancy
charges, exclusive of charges for gas, electricity, heat, or other
utilities furnished to the occupants.
The State Housing Development Authority.
A single person who is 55 years of age or older or a 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.
A development which contains a significant element of housing
for persons of low 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 persons of low income.
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.
Fuel, water, sanitary sewer and/or electrical services which
are paid by the housing development.
[Code 1992, § 28-203; 11-10-1997 by Ord. No. 1138]
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 pursuant to this division shall be housing
for families, which are financed or assisted pursuant to the Act.
It is further determined that Gold Crest Apartments is of this class.
[Code 1992, § 28-204; 11-10-1997 by Ord. No. 1138]
The housing development identified as Gold Crest Apartments
and the property on which it shall be constructed shall be exempt
from all property taxes from and after the commencement of construction.
The City, 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 division and the qualification
of the housing development for exemption from all property taxes and
a payment in lieu of taxes as established in this division and in
consideration of the sponsor's offer, subject to receipt of an allocation
under the LIHTC program, to construct, own and operate the housing
development, agrees to accept payment of an annual service charge
for public services in lieu of all property taxes. The annual service
charge shall be 6 1/2% of the annual shelter rents from the first
year in which the housing development is subject to such service charge
through the 10th year. The annual service charge shall be 10% of the
annual shelter rents in the 11th and subsequent years.
[Code 1992, § 28-205; 11-10-1997 by Ord. No. 1138]
(a)
Notwithstanding § 16-489, 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 the taxes which would be paid on that portion of the housing development if the housing development were not tax exempt.
[Code 1992, § 28-206; 11-10-1997 by Ord. No. 1138]
Notwithstanding the provisions of Section 15a(5) of the Act
[MCL 125.1415a(5)] to the contrary, a contract between the City and
the sponsor, with the Authority as third party beneficiary under the
contract, to provide tax exemption and accept payments in lieu of
taxes, as described, is effectuated by enactment of the ordinance
from which this division is derived.
[Code 1992, § 28-207; 11-10-1997 by Ord. No. 1138]
The service charge in lieu of taxes as determined under this
division shall be payable in the same manner as general property taxes
are payable to the City, except that the annual payment shall be paid
on or before March 15 of each year.
[Code 1992, § 28-208; 11-10-1997 by Ord. No. 1138]
This division shall remain in effect and shall not terminate
so long as the Authority's mortgage remains outstanding and unpaid
or the Authority has any interest in the property or the housing development
remains subject to income and rent restrictions pursuant to Section
42 of the Internal Revenue Code of 1986, as amended, provided that
construction of the housing development commences within one year
from the effective date of the ordinance from which this division
is derived.
[Code 1992, § 28-210; 11-10-1997 by Ord. No. 1138]
The City hereby acknowledges receipt of documentation from the
Authority indicating that the Authority's participation with the housing
development pursuant to this division is limited solely to the allocation
of tax credits under the low-income housing tax credit program.
