[HISTORY: Adopted by the Village Council of the Village of Vicksburg as indicated in article histories. Amendments noted where applicable.]
[Adopted 8-7-2000 by Ord. No. 237]
As used in this article, the following terms shall have the meanings indicated:
ACT
The State Housing Development Authority Act, being Public Act 346 of 1966 of the State of Michigan, as amended, MCLA § 125.1401 et seq., as amended.
ANNUAL SHELTER RENT
The total collections during an agreed annual period from all occupants of a housing development representing rent or occupancy charges, exclusive of charge for gas, electric, or other utilities furnished the occupants.
AUTHORITY
The Michigan State Housing Development Authority.
HOUSING DEVELOPMENT
A development which contains a significant element of housing for persons of low- or moderate-income and such elements of other housing, commercial, recreational, industrial, communal and educational facilities as the Authority determines to improve the quality of the development as it relates to housing for persons of low- or moderate-income.
LOW-INCOME PERSONS AND/OR FAMILIES
Households which are at or below 60% of the area median income, adjusted for family size.
MORTGAGE LOAN
A loan to be made by the Authority to the sponsor for the construction and/or permanent financing of a housing development.
SPONSOR
Persons or entities who or which have applied to the Authority for a mortgage loan to finance a housing development. "Sponsor" includes all transferees, successors, assigns and heirs.
The housing development, identified as a portion of the project commonly known as the "Sawmill Creek Apartments," consisting of 24 dwelling units to be constructed in 1998, and the property on which it shall be constructed, shall be exempt from all property taxes from and after the date when construction of the project was commenced. The Village, 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 herein, and in consideration of the Authority's offer to the sponsor to make a mortgage loan to finance the sponsor's construction of the housing development, subject to the satisfaction of all the terms and conditions of its loan commitment to the sponsor, hereby agrees to accept payment of a service charge of public services in lieu of all property taxes from the sponsor. The annual payment in lieu of taxes shall be established at an amount equal to 4% of annual shelter rent in year one through year nine, then increasing each year by 1/4% to a maximum of 5 3/4% of annual shelter rent in year 16 and remaining at 5 3/4% of the annual shelter rents for the named project as long as this article is in effect. However, the annual payment in lieu of taxes shall never be less than $5,595. The annual service charge shall be the applicable percentage of the annual shelter rents or the tax on the property on which the project is located for the tax year before the date construction commenced, whichever is greater. Sponsor shall pay the annual service charge for a period of 16 years of operation, beginning at commencement of construction of the project.
The service charge in lieu of taxes, as determined according to this article, shall be payable in the same manner as general property taxes are payable to the Village.
[Amended 6-4-2001 by Ord. No. 238]
This article shall remain in effect and shall not terminate so long as a mortgage loan remains outstanding and unpaid or the State Housing Development Authority has any interest in the property, provided that construction of the housing development commences within one year of the original effective date of this article. Upon satisfaction in full of the Authority mortgage loan, this article shall automatically terminate.
[Adopted 6-18-2001 by Ord. No. 239 (Ch. 18, Art. III, of the 1995 Village Code)]
As used in this article, the following terms shall have the meanings indicated:
ACT
The State Housing Development Authority Act, being Public Act 346 of 1966 of the State of Michigan, as amended.
ANNUAL SHELTER RENT
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.
AUTHORITY
The Michigan State Housing Development Authority.
CONTRACT RENTS
As defined by the U.S. Department of Housing and Urban Development in regulations promulgated pursuant to the U.S. Housing Act of 1937, as amended.
HOUSING DEVELOPMENT
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.
MORTGAGE LOAN
A loan to be made by the Authority to the sponsor for the construction and/or permanent financing of the housing development.
RESERVED
For definition of class (i.e., elderly, family, handicapped, etc., to which this article shall apply).
SPONSOR
Person(s) or entities which have applied to the Authority for a mortgage loan to finance a housing development.
UTILITIES
Fuel, water, sanitary sewer service and/or electrical service which are paid by the housing development.
It is determined that this exemption is project specific and is multifamily residential, which is a type of project financed or assisted pursuant to the Act. It is further determined that Saw Mill Creek Apartments Phase II is a project which is within the Act.
The housing development identified as Saw Mill Creek Apartments Phase II and the property on which it shall be constructed shall be exempt from all property taxes from and after the commencement of construction. The Village of Vicksburg, 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 annual shelter rent in year one through year nine, then increasing each year by 1/4% to a maximum of 5 3/4% of annual shelter rent in year 16 and remaining at 5 3/4% of the annual shelter rents for the named project as long as this article is in effect. However, the annual payment in lieu of taxes shall never be less than $5,595. The annual service charge shall be the applicable percentage of the annual shelter rents or the tax on the property on which the project is located for the tax year before the date construction commenced, whichever is greater.
Notwithstanding § 417-10, 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.
Notwithstanding the provisions of Section 15(a)(5) of the Act to the contrary, a contract between the Village of Vicksburg 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 Village of Vicksburg, except that the annual payment shall be paid on or before September 14 of each year.
This article shall remain in effect and shall not terminate so long as the mortgage loan 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 the effective date of this article.