[2-12-2007 by Ord. No.
1274]
The City acknowledges that American Community Developers, Inc.
("sponsor") has offered, subject to receipt of an allocation under
the low income housing tax credit ("LIHTC") laws, to own and operate
a senior, rent-subsidized housing development identified as Grandview
Tower on certain property located in the block bound by 7th, Pine,
6th, and Wall Streets, in the City to serve senior citizens of low-
and moderate-income, and that the sponsor has offered to pay the City
on account of this housing development an annual payment for public
services in lieu of all taxes.
[2-12-2007 by Ord. No.
1274]
All terms used in this division shall be defined as set forth
in the Act, 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 346
of 1966 (MCL 125.1401 et seq.).
The total collections during an agreed annual period from
or on behalf of all low income occupants of a housing development
representing rent or occupancy charges, exclusive of the portion of
said charges attributable to gas, electricity, heat or other utilities
furnished to the occupants by the sponsor.
The Michigan State Housing Development Authority.
The City of Port Huron, St. Clair County, Michigan.
The existing senior, Section 8 rent-subsidized housing development
known as Grandview Tower located in the City of Port Huron, St. Clair
County, Michigan, on land owned by the City located in the block bound
by 7th, Pine, 6th, and Wall Streets, with a legal description that
will be forthcoming upon completion of the survey for the property
commonly known as 1016-7th Street.
The meaning set forth in the Section 8 regulations so long
as the Section 8 subsidies continue and thereafter as provided in
the Act.
A development which contains a significant element of housing
for persons of low income and such elements of other housing, commercial,
recreational, communal and education facilities as the Authority has
determined improves the quality of development as it relates to housing
for persons of low income.
The U.S. Department of Housing and Urban Development.
Those persons and families whose income at the time of move
in is 60% or less of area median income as adjusted for family size
and who are determined to be eligible to move into the development
under the provisions of Section 42. The units shall be rent restricted
pursuant to the requirements of Section 42.
Section 42 of the Internal Revenue Code of 1986, as amended
("Code").
Fuel, water, sanitary sewer service and/or electrical service
which are paid by the development.
[2-12-2007 by Ord. No.
1274]
It is determined that the class of housing developments to which
the tax exemption under this division shall apply and for which a
payment shall be paid in lieu of such taxes shall be Section 42 Housing
Developments for the Elderly which have received an LIHTC allocation
from the Authority pursuant to Section 42. Based on representations
and warranties of the sponsor, it is determined that the development
is a housing development eligible for tax exemption provided by Section
15(a) of the Act.
[2-12-2007 by Ord. No.
1274]
The development and the property on which it is situated shall
be exempt from all property taxes commencing with the first January
1st following the later of: (1) the transfer of title to the building
and execution of the ground lease and (2) compliance by the sponsor
with all requirements imposed on the "owner" by Subsection (1) of
Section 15(a) of the Act. The City, acknowledging that the sponsor
and the Authority have established the economic feasibility of the
development in reliance upon the enactment and continuing effect of
this division and the qualification of the 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 LIHTC allocation from the authority, agrees to accept
an annual payment for public services in lieu of all property taxes.
The annual payment shall be 4.0% of the annual shelter rents
collected during the period from January 1 through December 31 of
each year.
[2-12-2007 by Ord. No.
1274]
Notwithstanding the provisions of Section 15(a) of the Act 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 previously
described, is effectuated by enactment of the ordinance from which
this division is derived.
[2-12-2007 by Ord. No.
1274]
The annual payment 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.
[2-12-2007 by Ord. No.
1274]
The benefits of the tax exemption granted pursuant to this division
shall be allocated by the sponsor exclusively to low-income persons.
The sponsor shall, at the request of the City, submit to the City
such evidence and documentation as may be reasonably necessary to
verify sponsor's compliance with this requirement.
[2-12-2007 by Ord. No.
1274]
This division shall remain in effect and shall not terminate
so long as any Authority mortgage or HUD insured mortgage remains
outstanding and unpaid or the Authority has any interest in the property
(including, without limitation, any liens, regulatory agreement or
use restrictions) or the housing development remains subject to income
and rent restrictions pursuant to Section 42 of the Code.
[2-12-2007 by Ord. No.
1274]
Subject to any limitations imposed by law, the sponsor shall
provide to the City such accounting records, audits and financial
reports as the City shall reasonably require to verify the computation
of the annual payment in lieu of taxes as provided by this division.
Subject to limitations imposed by law, the books and records of the
sponsor pertaining to the development shall be available for review
and audit by the City at all reasonable times.
[2-12-2007 by Ord. No.
1274]
Annual payment payable pursuant to this division shall be a
lien on the development, and, if delinquent, shall be collected and
enforced in the same manner as general property taxes.
