[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:
The Michigan State Housing Development Authority.
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.
The Low-Income Housing Tax Credit Program administered by
the Authority under Section 42 of the Internal Revenue Code of 1986,
as amended.
Persons and families eligible to move into a housing project.
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.
PK Bramblewood LDHA LP and any entity that receives or assumes
a mortgage loan.
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:
The Michigan State Housing Development Authority.
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.
The Low-Income Housing Tax Credit Program administered by
the Authority under Section 42 of the Internal Revenue Code of 1986,
as amended.
Persons and families eligible to move into a housing project.
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.
PK Perry Acres 24 LDHA LP and any entity that receives or
assumes a mortgage loan.
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.
