[Adopted 3-23-1999 by Ord. No. 239]
This article shall be known as the "Lexington Pointe at Ann
Arbor Tax Exemption Ordinance."
A.
It is acknowledged that it is a proper public purpose of the State
of Michigan and its political subdivisions to provide housing for
its citizens of low 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, MCL 125.1401 et seq.). The Township
is authorized by this Act to establish or change the service charge
to be paid in lieu of taxes by any or all classes of housing exempt
from taxation under this Act at any amount it chooses not to exceed
the taxes that would be paid but for this Act. It is further acknowledged
that such housing for persons of low income is a public necessity,
and as the Township will be benefited and improved by such housing,
the encouragement of the same by providing certain real estate exemption
for such housing is a valid public purpose; further, that the continuance
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.
B.
The Township acknowledges that Lexington Pointe at Ann Arbor (the
"sponsor") has offered, subject to receipt of a mortgage loan from
the Michigan State Housing Development Authority, to erect, own and
operate a housing development, identified as Lexington Pointe at Ann
Arbor, on the property hereinafter described, to serve persons of
low income, and that the sponsor has offered to pay the Township on
account of this housing development an annual service charge for public
services in lieu of all taxes.
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Property Description
A parcel of land being part of the northeast fractional 1/4
of Section 1, Township 3 South, Range 6 East, Pittsfield Charter Township,
Washtenaw County, Michigan, described as:
Commencing at the Northeast corner of Section 1, Township 3
South, Range 6 East, Pittsfield Charter Township, Washtenaw County,
Michigan; thence South 00 degrees 02’ 15” West 955.38
feet along the East line of said Section 1 and the centerline of Golfside
Road to the Point of Beginning; thence continuing along said East
line of Section 1, 339.57 (338.33 as recorded) feet; thence North
89 degrees 42’ 32” west 1328.99 (1329.67 as recorded)
feet; thence North 00 degrees 06’ 38” East 316.62 (316.66
as recorded) feet; thence North 89 degrees 18’ 04” East
1328.66 (1330.63 as recorded) feet to the Point of Beginning. EXCEPTING
the East 50 feet of the above parcel.
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As used in this article, the following terms shall have the
meanings indicated:
The State Housing Development Authority Act, being Act 346
of 1966, of the State of Michigan (MCL 125.1401 et seq.), as amended.
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 Michigan State Housing Development Authority.
A single person who is 55 years of age or older or a household
in which at least one person is 55 years of age or older and all 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 improves the quality of the development as
it relates to housing for persons of low income.
A loan to be made by the Authority, or the issuance of bonds
by the Authority, to the sponsor for the construction and/or permanent
financing of the housing development.
Persons or entities which have applied to the Authority for
a mortgage loan to finance a housing development.
The Charter Township of Pittsfield, Washtenaw County, Michigan.
Fuel, water, sanitary sewer service and/or electrical service,
which are paid by the housing development.
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 shall be elderly, which are financed
or assisted pursuant to the Act. It is further determined that Lexington
Pointe at Ann Arbor is of this class.
The housing development identified as Lexington Pointe at Ann
Arbor 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 the Authority 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 as established in
this article, and in consideration of the sponsor's offer, subject
to receipt of a mortgage loan from the Authority, 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 4% of the difference
between the annual shelter rents actually collected and utilities.
A.
Notwithstanding § 30-21, 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.
B.
The term
"low income persons or families" as used herein shall be the same
meaning as found in Section 15(a)(7) of the Act [MCL 125.1415a(7)].
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 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 service charge in lieu of taxes as determined under the
article shall be payable in the same manner as general property taxes
are payable to the Township, except the annual payment shall be paid
on or before March 31 of each year. A penalty of 3%, plus 1% per month
interest, will be applied to delinquent payments received after March
31.
This article shall remain in effect and shall not terminate
so long as the Authority's mortgage loan 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 this article.
