[Adopted 2-25-2015 by Ord. No. 317 as Ch. 30, Art. II, of the 2015 Pittsfield
Charter Township Code]
All terms shall be defined as set forth in the Act, except as
follows:
The State Housing Development Authority Act, being Public
Act 346 of 1966, of the State of Michigan (MCL 125.1401 et seq.),
as amended.
The total collections during a calendar year from all occupants
of Heritage Place representing rent or occupancy charges, exclusive
of charges attributable to gas, electricity, heat or other utilities
furnished to the occupants by the sponsor.
The Michigan State Housing Development Authority.
The proposed Heritage Place at Blossom Trail housing development.
A development which contains a significant element of housing
for persons of low income and such elements of other housing and commercial,
recreational, industrial, communal and educational facilities that
the Authority has determined improve the quality of the development
as it relates to housing for persons of low or moderate income.
Low-income housing tax credits pursuant as defined in Section
42.
Those persons and families whose income is 60% or less of
area median income as adjusted for family size and who are determined
to be eligible to move into Heritage Place under the provisions of
Section 42, the units of whom shall be rent restricted.
Section 42 of the Internal Revenue Code of 1986, as amended
(26 U.S.C. § 1 et seq.).
A household composed of one or more persons at least one
of whom is 55 years of age or more at the time of initial occupancy.
Heritage Place at Blossom Trail Limited Dividend Housing
Association Limited Partnership.
Anyone currently residing in the Township or anyone currently
working or notified that they are hired to work in the Township.
Fuel, water, sanitary sewer service and/or electrical service
which are paid by the sponsor.
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 taxes shall be senior citizen Section 42 housing
developments 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 Heritage Place is a housing development
eligible for tax exemption provided by Section 15a of the Act (MCL
125.1415a) upon its allocation award of LIHTC from MSHDA.
A.
Heritage Place shall be exempt from all property taxes commencing
with the first January 1st following the commencement of construction.
Until the first January after Heritage Place is approved for occupancy,
Heritage Place shall be subject to an annual service charge which
shall be the total real estate taxes which would otherwise be assessed
against the property on which Heritage Place is to be built if it
remained in an unimproved condition. After Heritage Place is approved
for occupancy, the annual service charge shall be 8% of the collections
from the total annual shelter rents.
B.
The Township, acknowledging that the sponsor and the Authority have
established the economic feasibility of Heritage Place in reliance
upon the enactment and continuing effect of this article and the qualification
of Heritage Place for exemption from all property taxes and a payment
in lieu of taxes as established in this article, and in consideration
of the sponsor's offer, subject to receipt of a mortgage loan and
a LIHTC allocation from the Authority, to construct, own and operate
Heritage Place, agrees to accept payment of an annual service charge
for public services in lieu of all property taxes.
C.
For 2004 and 2005 the annual service charge shall be the total real
estate taxes which would otherwise be assessed against the lands and
premises on which Heritage Place is to be built if they remained in
an unimproved condition. Thereafter, the annual service charge shall
be of 8% of the collections from the total annual shelter rents.
D.
Notwithstanding the foregoing, for all years during which this section
is operative, the annual service charge shall be no less than the
total real estate taxes which would otherwise be assessed against
the lands and premises on which Heritage Place is to be built if they
remained in an unimproved condition.
Notwithstanding the provisions of Section 15a of the Act (MCL
125.1415a) to the contrary, a contract between the Township 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 this article.
The annual 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 sponsor shall pay
the annual service charge not later than the 30th day after the end
of a calendar year.
To the extent permissible under federal, state or local fair
housing laws, the sponsor shall give preference for occupancy of Heritage
Place to qualified applicants who are Township residents.
The benefits of the tax exemption granted pursuant to this article
shall be allocated by the sponsor exclusively to the low-income persons
or families of Heritage Place in the form of reduced rent. The sponsor
shall, at the request of the Township, submit to the Township such
evidence and documentation as may be reasonably necessary to verify
sponsor's compliance with this requirement.
This article shall remain in effect from its effective date
and will not terminate so long as the federally-aided or MSHDA-aided
mortgage or advance or grant from the MSHDA is outstanding with regard
to Heritage Place but, in any event, not more than 50 years.
Following the 15th day after the end of each calendar year,
upon request therefor, the sponsor shall provide the Township with
records showing the basis for the annual service charge and showing
that the development meets the occupancy requirements of this article.
The Township may request and review such additional records for verification
purposes as it may deem reasonably necessary.
Annual service charges payable pursuant to this article shall
be a lien on Heritage Place, and, if delinquent, may be collected
and enforced in the same manner as general property taxes.
