[HISTORY: Adopted by the Township Board of Trustees of the
Township of Lawrence 1-29-2013; amended in its entirety by 3-12-2015 (Ord. No. 24 of the 2005 Code). Subsequent
amendments noted where applicable.]
This chapter authorizes and approves an annual service charge
in lieu of taxes for residential housing developments that serve low-income
or moderate-income persons (as defined in the State Housing Development
Authority Act, Act 346 of the Public Acts of Michigan of 1966,[1] as amended, and this chapter); are financed or assisted
by USDA-RD or the Authority in accordance with Act 346; are located
within the Township; and comply with this chapter.
[1]
Editor's Note: See MCLA § 125.1401 et seq.
This chapter shall be known and cited as the "Township of Lawrence
Tax Exemption Ordinance."
A.Â
It is acknowledged that it is a proper public purpose of the State
of Michigan and its political subdivisions to provide housing for
low-income citizens and to encourage the development of such housing
by providing for a service charge in lieu of property taxes in accordance
with Act 346. The Township is authorized by Act 346 and this chapter
to establish or change the annual service charge to be paid in lieu
of taxes by any and all classes of housing exempt from taxation under
Act 346 at any amount it chooses, not to exceed the taxes that would
be paid but for Act 346. It is further acknowledged that housing for
low-income persons and families 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 tax exemptions for such
housing is a valid public purpose; further, that the continuance of
the provisions of this chapter for tax exemption and the service charge
in lieu of taxes during the period contemplated in this chapter are
essential to the determination of economic feasibility of housing
developments which are constructed and financed in reliance on such
tax exemption.
B.Â
The Township acknowledges that the Woda Lawrence Downs Limited Dividend Housing Association Limited Partnership (the "sponsor" as defined in § 24-4 of this chapter) has committed to rehabilitate, own and operate a housing development identified as "Lawrence Downs Apartments" on certain property located 599 South Paw Paw Street within the Township of Lawrence, Michigan, which is legally described in § 24-4 of this chapter, to serve low-income or moderate-income persons, and that the sponsor has offered to pay and will pay to the Township, on account of the housing development, an annual service charge for public services in lieu of all taxes.
The terms used within this chapter shall have the following
meanings:
The State Housing Development Authority Act, being Act 346
of the Public Acts of Michigan of 1966,[1] as amended.
The total actual collections during each calendar year from
all occupants of a housing development representing rents or occupancy
charges, which rental amounts shall be exclusive of charges for gas,
electricity, heat, or other utilities furnished to the occupants.
The Michigan State Housing Development Authority.
The housing development known as "Lawrence Downs Apartments"
for low-income or moderate-income persons.
Any of the following:
"HUD") or United States Department of Agricultureary of the Department of Housing and Urban Development ("HUD") or United States Department of Agriculture - Rural Development ("USDA-RD");
A mortgage receiving interest credit reduction payments provided
by the HUD or USDA-RD;
A housing development to which the Authority allocates low-income
housing tax credits under Section 22b of the Act[2]; or
A mortgage receiving special benefits under other federal law
designated specifically to develop low- and moderate-income housing,
consistent with the Act.
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 to improve the quality of the development
as it relates to housing for persons of low income. For the purposes
of this chapter, "housing development" means Lawrence Downs Apartments,
located on the property legally described as:
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Situated in the Township of Lawrence, Van Buren County, Michigan:
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Beginning at a point found by commencing at the Northwest corner
of Section 15, Town 3 South, Range 15 West and running thence South
00°14'30" West, 297.00 feet along the West line of said Section
to the point of beginning of this description; thence South 89°36'11"
East, 841.50 feet; thence South 00°14'30" West, 225.76 feet; thence
North 89°42'10" West parallel with the South line of the Northwest
quarter of the Northwest quarter of said Section 15, 608.50 feet;
thence North 00°14'30" East, 176.82 feet parallel with said West
line of Section 15; thence North 89°36'11" West parallel with
said North line 233.00 feet to the West line of said Section; thence
North 00°14'30" East along said Section line, 50.00 feet to the
point of beginning.
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Van Buren County ID: 80-44-455-007-00
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Also
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Beginning at a point found by commencing at the Northwest corner
of Section 15, Town 3 South, Range 15 West and running thence South
00°14'30" West, 347.00 feet from the Northwest corner of said
Section to the point of beginning of this description; thence South
89°36'11" East parallel with the North line of said Section 233.00
feet; thence South 00°14'30" West, 176.82 feet; thence North 89°42'10"
West parallel with the South line of the Northwest quarter of the
Northwest quarter of said Section 15, 233.00 feet to the West line
of said Section; thence North 00°14'30" East along said West line,
177.23 feet to the point of beginning, except Paw Paw Street right-of-way.
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Van Buren County ID: 80-44-455-008-00
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Persons and families eligible to move into the housing development
and as defined in the Act, as amended.
Person(s) or entities which have applied to the Authority
for the tax credits to finance a housing development. For the purposes
of this chapter, the sponsor is Woda Lawrence Downs Limited Dividend
Housing Association Limited Partnership.
The low-income housing tax credits made available by the
Authority to the sponsor for rehabilitation of the housing development
by the sponsor in accordance with the Low Income Housing Tax Credit
Program administered by the Authority under Section 42 of the Internal
Revenue Code of 1986, as amended.
The United States Department of Agriculture, Rural Services
Division.
Fuel, water, sanitary sewer service and/or electrical service,
which are paid by the housing development.
This chapter shall apply only to the housing development to
the extent that the housing development provides housing for low-income
or moderate-income persons and is financed or assisted by USDA-RD
or the Authority pursuant to the Act.
A.Â
The Township acknowledges that the sponsor and USDA-RD and/or the
Authority have established the economic feasibility of the housing
development in reliance upon the enactment and continuing effect of
this chapter and the qualification of the housing development for
exemption from all ad valorem property taxes and payment of an annual
service charge in lieu of taxes in an amount established in accordance
with this section. In consideration of the sponsor's offer to rehabilitate,
own and operate the housing development, the Township agrees to accept
payment of an annual service charge for public services in lieu of
all ad valorem property taxes that would otherwise be assessed to
the housing development under Michigan law.
(1)Â
Subject to the receipt by the Township of the notification of exemption
(or such other similar notification) by the sponsor and/or the Authority,
the annual service charge shall be equal to $19,200, plus the legal
and other expenses of the Township relative to the preparation of
this chapter and the exemption provided herein and any future extensions
or modification thereof; said costs to include, but not be limited
to, the cost for attorney review, publication costs and the cost of
special meetings, if any. In addition to such costs and expenses,
in the event the Township, village or school district should adopt
a special assessment from and after the date of this agreement, the
housing development shall pay the special assessment in addition to
the annual service charge.
(2)Â
Each year, but no later than January 31, the sponsor shall provide
the Township Assessor with documentation regarding the low-income
status of the individuals or families residing in the development.
In no event shall the documentation reveal any confidential or private
information about the residents that is prohibited from release pursuant
to either applicable state or federal law.
B.Â
The housing development, and the property on which it shall be constructed,
shall be exempt from all property taxes beginning in the calendar
year from and after the completion of rehabilitation of the housing
development by the sponsor under the terms of this chapter. The exemption
shall begin when the sponsor shall have received certificates of occupancy
from the Village.
Notwithstanding § 24-6, if any portion of the housing development is occupied by other than low-income or moderate-income persons, the full amount of the taxes that would be paid on those units of the housing development if the housing development were not tax exempt shall be added to the service charge in lieu of taxes.
Notwithstanding the provisions of Section 15(a)(5) of the Act[1] to the contrary, and subject to the terms of this chapter, including, but not limited to, § 24-11 herein, this chapter constitutes a contract between the Township and the sponsor and the housing development to provide an exemption from ad valorem property taxes and to accept the payment of an annual service charge in lieu of such taxes, as previously described in this chapter. It is expressly recognized that the Authority and USDA-RD are third-party beneficiaries to this chapter.
[1]
Editor's Note: See MCLA § 125.1415a(5).
The service charge in lieu of taxes shall be payable to the
Township in the same manner as ad valorem property taxes are payable,
except that the annual payment shall be paid on or before January
31 of each year for the previous calendar year.
This chapter shall remain in effect and shall not terminate
so long as the housing development remains subject to a federally
aided mortgage and so long as the housing development submits the
required annual notification of exemption pursuant to MCLA § 125.1415a(1),
as amended, but in any event not more than 18 years from the date
of completion of the rehabilitation.
The various sections and provisions of this chapter shall be
deemed to be severable, and should any section or provision of this
chapter be declared by any court of competent jurisdiction to be unconstitutional
or invalid, the same shall not affect the validity of this chapter
as a whole or any section or provision of this chapter, other than
the section or provision so declared to be unconstitutional or invalid.
All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this chapter are repealed to the extent of
such inconsistency or conflict.
This chapter shall become effective the day following its publication
or the day following publication of a summary of its provisions in
a newspaper of general circulation in the Township.
