[11-13-2023 by Ord. No. 23-007]
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 City of Port Huron 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 City of Port Huron 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 division
for tax exemption and the service charge in lieu of all ad valorem
taxes during the period contemplated in this division are essential
to the determination of economic feasibility of the housing projects
that is constructed or rehabilitated with financing extended in reliance
on such tax exemption.
The City of Port Huron 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 acquire, rehabilitate, own and operate a housing project identified
as Lincoln Avenue Lofts on certain property located in the City of
Port Huron, St. Clair County, Michigan and commonly known as 1003,
1011, 1013, 1019, 1023, 1027 Erie Street and 805, 807, 811 Rawlins
Street, and 810, 814 Lincoln Avenue (further described below) to serve
low-income persons and families, and that the Sponsor has offered
to pay the City on account of this housing project an annual service
charge for public services in lieu of all ad valorem property taxes.
Described for tax purposes as follows:
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Tax Legal Description: S 27 FT OF N 63 FT LOT 8 BLK 20 SUBDIVISION
OF THE FORT GRATIOT MILITARY RESERVATION
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Common Address: 1011 Erie Street
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Tax ID: 74-06-365-0226-000
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Tax Legal Description: N 36 FT LOT 8 BLK 20 SUBDIVISION OF THE
FORT GRATIOT MILITARY RESERVATION
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Common Address: 1013 Erie Street
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Tax ID: 74-06-365-0222-000
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Tax Legal Description: S 1/3 LOTS 1 & 2 BLK 20 SUBDIVISION
OF THE FORT GRATIOT MILITARY RESERVATION
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Common Address: 1019 Erie Street
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Tax ID: 74-06-365-0214-000
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Tax Legal Description: S 1/2 OF N 2/3 LOTS 1 & 2 BLK 20
SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION
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Common Address: 1023 Erie Street
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Tax ID: 74-06-365-0213-000
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Tax Legal Description: N 1/3 LOT 1 & N 1/3 OF E 12 FT LOT
2 BLK 20 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION
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Common Address: 1027 Erie Street
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Tax ID: 74-06-365-0212-000
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Tax Legal Description: N 1/3 OF W 38 FT LOT 2 BLK 20 SUBDIVISION
OF THE FORT GRATIOT MILITARY RESERVATION
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Common Address: 810 Lincoln Avenue
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Tax ID: 74-06-365-0215-000
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Tax Legal Description: LOT 3 BLK 20 SUBDIVISION OF THE FORT
GRATIOT MILITARY RESERVATION
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Common Address: 814 Lincoln Avenue
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Tax ID: 74-06-365-0216-000
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Tax Legal Description: S 23 FT LOT 8 BLK 20 SUBDIVISION OF THE
FORT GRATIOT MILITARY RESERVATION
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Common Address: 805 Rawlins Street
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Tax ID: 74-06-365-0224-000
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Tax Legal Description: LOT 7 BLK 20 SUBDIVISION OF THE FORT
GRATIOT MILITARY RESERVATION
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Common Address: 807 Rawlins Street
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Tax ID: 74-06-365-0221-000
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Tax Legal Description: LOT 6 BLK 20 SUBDIVISION OF THE FORT
GRATIOT MILITARY RESERVATION
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Common Address: 811 Rawlins Street
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Tax ID: 74-06-365-0220-000
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Tax Legal Description: N 23.5 FT OF S 46.5 FT LOT 8 BLK 20 SUBDIVISION
OF THE FORT GRATIOT MILITARY RESERVATION
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Common Address: 1003 Erie Street
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Tax ID: 74-06-365-0223-000
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[11-13-2023 by Ord. No. 23-007]
The following definitions are applicable to this Division 10 of Chapter 16.
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 Michigan State Housing Development Authority.
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.
CHN Lincoln Limited Dividend Housing Association Limited
Partnership 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.
[11-13-2023 by Ord. No. 23-007]
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 Lincoln Avenue Lofts is of this class.
[11-13-2023 by Ord. No. 23-007]
The housing project identified as Lincoln Avenue Lofts and the
real property on which it will be located shall be exempt from all
ad valorem property taxes from and after the commencement of construction
or rehabilitation. The City 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
division, 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 division. Therefore, in consideration of the
Sponsor's offer to construct/rehabilitate Lincoln Avenue Lofts
and operate the housing project, the City 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 7% of the annual shelter rents
actually collected by the housing project during each operating year,
exclusive of charges for gas, electric, water, sanitary sewer, and
other utilities furnished to the occupants that are paid by the housing
project.
[11-13-2023 by Ord. No. 23-007]
Notwithstanding the provisions of Section 15(a)(5) of the Act
to the contrary, a contract between the City 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 division.
[11-13-2023 by Ord. No. 23-007]
Notwithstanding § 15-563, 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.
[11-13-2023 by Ord. No. 23-007]
The annual service charge in lieu of taxes as determined under
this division shall be payable in the same manner as general property
taxes are payable to the City 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, except
that the annual service charge shall be paid in one annual payment,
which annual payment shall be paid to the City on or before July 1
of each year for the previous calendar year. In addition to the payment
of the service charge the Sponsor shall provide to the City a copy
of the annual audit or other financial information reasonably requested
by the City to verify the amount of the service charge. Collection
procedures shall be in accordance with the provisions of the General
Property Tax Act (1893 PA 206, as amended; MCL 211.1 et seq.).
[11-13-2023 by Ord. No. 23-007]
This division shall remain in effect and shall not terminate so long as a mortgage loan remains outstanding and unpaid, the housing project remains subject to income and rent restrictions under the LIHTC Program, or a land use restriction for affordable housing remains on the property; provided that construction of the housing development identified as Lincoln Avenue Lofts commences within three years from the effective date of this division; and provided further that in no event shall the exemption granted under § 16-563 continue for more than 30 years. In the event that Lincoln Avenue Lofts fails to meet the requirements in this section, then this division may be amended at the sole discretion of the City of Port Huron Council.
[Adoptedx 11-13-2023 by Ord. No. 23-007]
The various sections and provisions of this division shall be
deemed to be severable, and should any section or provision of this
division be declared by any court of competent jurisdiction to be
unconstitutional or invalid the same shall not affect the validity
of this division as a whole or any section or provision of this division,
other than the section or provision so declared to be unconstitutional
or invalid.
[11-13-2023 by Ord. No. 23-007]
All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this division are repealed to the extent of
such inconsistency or conflict. Provided, this division shall not
be deemed to conflict or be inconsistent with Divisions 1 through
9 of this article.
