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:
ACT
The State Housing Development Authority Act, being Public
Act No. 346 of 1966 (MCL 125.1401 et seq.).
ANNUAL SHELTER RENT
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. Housing assistance payments
are deemed not to be rent or an occupancy charge.
AUTHORITY
The State Housing Development Authority.
ELDERLY
A family where the head of the household is 62 years of age
or older or a single person who is 62 years of age or older.
FEDERALLY AIDED FINANCING
Financing with the assistance of §
30-6 housing assistance funds and tax-exempt financing provided under the U.S. Housing Act of 1937.
HANDICAPPED
As defined in the National Housing Act (12 U.S.C. § 1701
et seq.).
HOUSING DEVELOPMENT
A development that 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.
SPONSOR
Persons or entities, their successors and assigns, which
have applied to HUD and others for assistance in construction and
permanent financing of a housing development.
UTILITIES
Fuel, water, sanitary sewer service and/or electrical service
paid by the development.
It is determined that the class of housing development to which
a tax exemption shall apply and for which a service charge shall be
paid in lieu of such taxes shall be limited to housing for the elderly
and the handicapped, which are financed or assisted pursuant to the
Act. It is further determined that Carpenter Place is of this class.
The housing development identified as Carpenter Place and the
property on which it shall be constructed shall be exempt from all
property taxes from and after the commencement of construction. The
Township, acknowledging that the sponsor and HUD have established
the economic feasibility of the housing development in reliance upon
the enactment and continuing effect of this article and the qualification
of the housing development for exemption from all property taxes and
a payment in lieu of taxes are established in this article, and in
consideration of the sponsor's offer, subject to receipt of federally
aided financing, 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
equal to 10% of the annual shelter rent.
Notwithstanding the provisions of Section 15(a)(5) of the Act
[MCL 125.1415a(5)] to the contrary, a contract between the Township
and the sponsor, contractors and permanent lenders and the Authority
as third party beneficiaries, to provide tax exemption and accept
payments in lieu thereof is effected by enactment of this article.
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 March 31 of each year.
This article shall remain in effect and shall not terminate
so long as the federally aided financing remains outstanding and unpaid
or the Authority has any interest in the property; provided that construction
of the housing development commences within one year from September
20, 1979.