Village of New Haven, MI
Macomb County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Village Council of the Village of New Haven as indicated in article histories. Amendments noted where applicable.]
[Adopted 3-10-2020 by Ord. No. 371]
This article shall be known and cited as the "Village of New Haven Tax Exemption Ordinance Bramblewood." The purpose of this article is to provide for a service charge in lieu of taxes for a housing project for low-income persons and families to be financed with a federally aided mortgage loan pursuant to the provisions of the State Housing Development Authority Act of 1966 (1966 PA 346, as amended; MCLA 125.1401 et seq) (the "Act").
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 low-income persons and families and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the Act. The Village of New Haven 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 low-income persons and families is a public necessity, and as the Village will be benefited and improved by such housing, the encouragement of the same by providing real estate tax exemption for such housing is a valid public purpose. It is further acknowledged that the continuance of the provisions of this article for tax exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this article are essential to the determination of economic feasibility of the housing projects that are constructed or rehabilitated with financing extended in reliance on such tax exemption.
B. 
The Village acknowledges that the Sponsor (as defined below) has offered, subject to receipt of an allocation under the LIHTC Program by the Michigan State Housing Development Authority, to rehabilitate, own, and operate a housing project identified as Bramblewood Apartments on certain property located at 31950 Clark Street, New Haven, MI 48048 in the Village of New Haven to serve low-income persons and families, and that the Sponsor has offered to pay the Village on account of this housing project an annual service charge for public services in lieu of all ad valorem property taxes.
As used in this article, the following terms shall have the meanings indicated:
AUTHORITY
The Michigan State Housing Development Authority.
ANNUAL SHELTER RENT
The total collections during an agreed annual period from or paid on behalf of all occupants of a housing project representing rent or occupancy charges, exclusive of utilities.
LIHTC PROGRAM
The Low-Income Housing Tax Credit Program administered by the Authority under Section 42 of the Internal Revenue Code of 1986, as amended.
LOW INCOME PERSONS AND FAMILIES
Persons and families eligible to move into a housing project.
MORTGAGE LOAN
A loan that is federally aided (as defined in Section 11 of the Act) or a loan or grant made or to be made by the Authority to the Sponsor for the construction, rehabilitation, acquisition and/or permanent financing of a housing project, and secured by a mortgage on the housing project.
SPONSOR
PK Bramblewood LDHA LP and any entity that receives or assumes a mortgage loan.
UTILITIES
Charges for gas, electric, water, sanitary sewer and other utilities furnished to the occupants that are paid by the housing project.
It is determined that the class of housing projects to which the tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be housing projects for low-income persons and families that are financed with a mortgage loan. It is further determined that Bramblewood Apartments is of this class.
The housing project identified as Bramblewood Apartments and the property on which it is located shall be exempt from all ad valorem property taxes from and after the commencement of construction or rehabilitation. The Village acknowledges that the Sponsor and the Authority have established the economic feasibility of the housing project in reliance upon the enactment and continuing effect of this article, and the qualification of the housing project for exemption from all ad valorem property taxes and a payment in lieu of taxes as established in this article. Therefore, in consideration of the Sponsor's offer to rehabilitate and operate the housing project, the Village agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes. Subject to receipt of a mortgage loan, the annual service charge shall be equal to 10% of the annual shelter rents actually collected by the housing project during each operating year.
Notwithstanding the provisions of Section 15(a)(5) of the Act to the contrary, a contract between the Village 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.
Notwithstanding § 460-5, the service charge to be paid each year in lieu of taxes for the part of the housing project that is tax exempt but 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 project if the housing project were not tax exempt.
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 and distributed to the several units levying the general property tax in the same proportion as prevailed with the general property tax in the previous calendar year. The annual payment for each operating year shall be paid on or before July 1 of the following year. Collection procedures shall be in accordance with the provisions of the General Property Tax Act (1893 PA 206, as amended; MCLA 211.1 et seq).
This article shall remain in effect and shall not terminate so long as a mortgage loan remains outstanding and unpaid and the housing project remains subject to income and rent restrictions under the LIHTC Program.
The various sections and provisions of this article shall be deemed to be severable, and should any section or provision of this article be declared by any court of competent jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this article as a whole or any section or provision of this article, 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 article are repealed to the extent of such inconsistency or conflict.
This article shall become effective on the date of publication as provided in MCLA 66.1.
[Adopted 3-10-2020 by Ord. No. 372]
This article shall be known and cited as the "Village of New Haven Tax Exemption Ordinance Perry Acres." The purpose of this article is to provide for a service charge in lieu of taxes for a housing project for low-income persons and families to be financed with a federally aided mortgage loan pursuant to the provisions of the State Housing Development Authority Act of 1966 (1966 PA 346, as amended; MCLA 125.1401 et seq) (the "Act").
[Amended 5-12-2020 by Ord. No. 373]
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 low-income persons and families and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with the Act. The Village of New Haven 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 low-income persons and families is a public necessity, and as the Village will be benefited and improved by such housing, the encouragement of the same by providing real estate tax exemption for such housing is a valid public purpose. It is further acknowledged that the continuance of the provisions of this article for tax exemption and the service charge in lieu of all ad valorem taxes during the period contemplated in this article are essential to the determination of economic feasibility of the housing projects that are constructed or rehabilitated with financing extended in reliance on such tax exemption.
B. 
The Village acknowledges that the Sponsor (as defined below) has offered, subject to receipt of an allocation under the LIHTC Program by the Michigan State Housing Development Authority, to rehabilitate, own, and operate a housing project identified as Perry Acres Apartments on certain property located at 32560 James Curtin (Curtain) Drive, New Haven, MI 48048 in the Village of New Haven to serve low-income persons and families, and that the Sponsor has offered to pay the Village on account of this housing project an annual service charge for public services in lieu of all ad valorem property taxes.
As used in this article, the following terms shall have the meanings indicated:
AUTHORITY
The Michigan State Housing Development Authority.
CONTRACT RENTS
The total contract rents (as defined by the U.S. Department of Housing and Urban Development in regulations promulgated pursuant to Section 8 of the U.S. Housing Act of 1937, as amended) received in connection with the operation of a housing project during an agreed annual period, exclusive of utilities.
LIHTC PROGRAM
The Low-Income Housing Tax Credit Program administered by the Authority under Section 42 of the Internal Revenue Code of 1986, as amended.
LOW-INCOME PERSONS AND FAMILIES
Persons and families eligible to move into a housing project.
MORTGAGE LOAN
A loan that is federally aided (as defined in Section 11 of the Act) or a loan or grant made or to be made by the Authority to the Sponsor for the construction, rehabilitation, acquisition and/or permanent financing of a housing project, and secured by a mortgage on the housing project.
SPONSOR
PK Perry Acres 24 LDHA LP and any entity that receives or assumes a mortgage loan.
UTILITIES
Charges for gas, electric, water, sanitary sewer and other utilities furnished to the occupants that are paid by the housing project.
It is determined that the class of housing projects to which the tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be housing projects for low-income persons and families that are financed with a mortgage loan. It is further determined that Perry Acres Apartments is of this class.
The housing project identified as Perry Acres Apartments and the property on which it is located shall be exempt from all ad valorem property taxes from and after the commencement of construction or rehabilitation. The Village acknowledges that the Sponsor and the Authority have established the economic feasibility of the housing project in reliance upon the enactment and continuing effect of this article, and the qualification of the housing project for exemption from all ad valorem property taxes and a payment in lieu of taxes as established in this article. Therefore, in consideration of the Sponsor's offer to rehabilitate and operate the housing project, the Village agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes. Subject to receipt of a mortgage loan, the annual service charge shall be equal to 10% of the annual contract rents actually collected by the housing project during each operating year.
Notwithstanding the provisions of Section 15(a)(5) of the Act to the contrary, a contract between the Village 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.
Notwithstanding § 460-17, the service charge to be paid each year in lieu of taxes for the part of the housing project that is tax exempt but 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 project if the housing project were not tax exempt.
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 and distributed to the several units levying the general property tax in the same proportion as prevailed with the general property tax in the previous calendar year. The annual payment for each operating year shall be paid on or before July 1 of the following year. Collection procedures shall be in accordance with the provisions of the General Property Tax Act (1893 PA 206, as amended; MCLA 211.1 et seq).
This article shall remain in effect and shall not terminate so long as a mortgage loan remains outstanding and unpaid and the housing project remains subject to income and rent restrictions under the LIHTC Program.
The various sections and provisions of this article shall be deemed to be severable, and should any section or provision of this article be declared by any court of competent jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this article as a whole or any section or provision of this article, 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 article are repealed to the extent of such inconsistency or conflict.
This article shall become effective on the date of publication as provided in MCLA 66.1.