[2-26-2024 by Ord. No. 24-001]
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 the 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 the Act at any amount it chooses, not to exceed the taxes that
would be paid but for the 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 Editor's Note: g 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 are 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 rehabilitate, own and operate a housing project identified as North
Port Village on certain property located in the City of Port Huron,
St. Clair County, Michigan and commonly known as 2601 and 2631 Krafft
Road (further described below) (the "Project") 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. The Project
is described for tax purposes as follows:
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Tax Legal Description: PART OF SEC 27 BEG AT PT DIST S 89-33-49
E 1455.00 FT FROM NW COR SEC 27, TH S 89-33-49 E 300.00 FT, TH S 00-43-30
W 500.00 FT, TH N 89-33-49 W 300 FT, TH N 00-43-30 E 500.00 FT TO
BEG EX KRAFFT ROAD ROW SEC 27 T7N R17E
| |
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Common Address: 2631 Krafft Road
| |
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Tax ID: 74-06-027-3001-022
| |
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Tax Legal Description: PART OF SEC 27 BEG AT PT DIST S 89-33-49
E 1755.00' FROM NW COR SEC 27, TH S 89-33-49 E 251.97',
TH S 00-38-27 W 1524.91', TH N 46-35-04 W 753.99', TH N
00-43-30 E 510.90', TH S 89-33-49 E 300.00', TH N 00-43-30
E 500.00' TO BEG EX KRAFFT ROAD ROW SEC 27 T7N R17E O RR ROW,
SELY BY LAKE HURON-BLACK RIVER CANAL, NELY BY CL OF HOWE DRAIN &
NWLY BY A LINE BEG AT PT DIST S 89-33-49 E 1305.0', TH S 00-43-30
W 1054.20', TH S 46-35-04 E 663.85 FT FROM NW COR SEC 27, TH
S 43-24-56 W 935' MORE OR LESS TO NWLY ROW LINE OF FORMER C &
O RAILROAD FT, CHORD BEARS N 37-33-37.5 W DIST OF 547.13', TH
N 43-05-17 W 1022.0', TH N 46-54-43 E 439.0', TH N 54-47-14
E 73.83', TH N 61-09-09 E 73.75', TH N 68-16-37 E 73.13',
TH N 68-07-18 E 185.27', TH S 89-33-49 E 93.95', TH N 00-43-30
E 895.0' TO POE EX KRAFFT RD ROW & EX THAT PART OF C &
O RAILROAD ROW LYING SELY OF A PT 1502' SELY FROM NW COR OF LOT
31 RONEYS HERCULES PLAT ADJ T7N R17E FRAC SEC 27 INFO PLATE ONLY NOW
KNOWN AS OAKHILLS CONDOMINIUMS #1-5 PART OF SEC 27 BEG AT PT DIST
S 89-33-49 E 1455.00 FT FROM NW COR SEC 27, TH S 89-33-49 E 300.00',
TH S 00-43-30 W 500.00', TH N 89-33-49 W 300', TH N 00-43-30
E 500.00' TO BEG EX KRAFFT ROAD ROW SEC 27 T7N R17E BEG AT PT
DIST S 89-33-49 E 1205.00', TH S 00-43-30 W 895.0', TH N
89-33-49 W 93.95', TH S 68-07-18 W 185.27', TH S 68-16-37
W 73.13', TH S 61-09-09 W 73.75', TH S 54-47-14 W 73.83',
TH S 46-54-43 W 225.97' FROM NW COR SEC 27, TH S 46-54-43 W 213.03',
TH S 43-05-17 E 147.00', TH N 46-54-43 E 152.02', TH ALG
CURVE TO RIGHT 164.07', RAD 210.0 FT, CHORD BEARS N 19-53-12
W 159.93' TO POB FRAC SEC 27 BEG AT PT DIST N 26-56-00 W 35.48',
TH N 84-37-00 E 163.76', TH N 26-56-00 W 180.75', TH N 67-44-00
E 6.85' FROM INT OF CL OF HOLLAND AVE & ELY LINE OF PINE
GROVE AVE, TH N 28-18-13 W 180.97', TH N 60-37-33 E 126.54',
TH S 32-06-30 E 181.14', TH S 60-37-33 W 138.56' TO POB
FRAC SEC 27 COMBINED WITH OAKWOOD CONDOMINIUM #1 COMM 1989 COMBINED
WITH OAKWOOD CONDOMINIUM #2 1991 BEG AT PT DIST S 89-33-49 E 1205.0',
TH S 00-43-30 W 895.0' FROM NW COR SEC 27, TH ALG CURVE TO LEFT
294.29', RAD 356.41', CHORD BEARS S 22-55-47 E 286.0',
TH S 46-35-04 E 259.56', TH S 43-24-56 W 390.67', TH N 43-05-17
W 738.01', TH N 46-54-43 E 19.11', TH N 54-47-14 E 73.83',
TH N 61-09-09 E 73.75', TH N 68-16-37 E 73.13', TH N 68-07-18
E 185.27', TH S 89-33-49 E 93.95' TO BEG BEING PART OF SEC
27 COMBINED WITH OAKWOOD CONDOMINIUM #2 COMM 1990 COMB WITH OAKWOOD
CONDOMINIUM #1 COMM 1989
| |
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Common Address: 2601 Krafft Road
| |
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Tax ID: 74-06-027-3001-020
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[2-26-2024 by Ord. No. 24-001]
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.
All of the persons and families permitted to move into the
Project pursuant to the terms of the 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 the Project, and secured by a mortgage on the
Project.
North Port Preservation Limited Dividend Housing Association
LLC and any successor that acquires the Project and 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 Project.
[2-26-2024 by Ord. No. 24-001]
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 the Project is of this class.
[2-26-2024 by Ord. No. 24-001]
The Project 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 construction or rehabilitation of the Project in reliance upon
the enactment and continuing effect of this division, and the qualification
of the 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
the Project and operate the 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 4% of the annual shelter rents
actually collected from the Project during each operating year, exclusive
of utilities.
[2-26-2024 by Ord. No. 24-001]
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.
[2-26-2024 by Ord. No. 24-001]
Notwithstanding § 16-583, the service charge to be paid each year in lieu of taxes for the part of the Project that is tax exempt but which is occupied by other than low-income persons and families shall be equal to the full amount of the taxes which would be paid on that portion of the Project if the Project were not tax exempt.
[2-26-2024 by Ord. No. 24-001]
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). If not
timely paid, the annual service charge in lieu of taxes provided for
herein shall be subject to the same late fees, costs and penalties
applicable to property taxes which are not timely paid.
[2-26-2024 by Ord. No. 24-001]
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 pursuant to the LIHTC Program, or a land use restriction for affordable housing remains on the property; provided that rehabilitation of the Project commences within three years from the effective date of this division; and provided further that in no event shall the exemption granted under § 16-583 continue for more than 40 years. In the event that the Project 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.
[2-26-2024 by Ord. No. 24-001]
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.
[Adoptedx 2-26-2024 by Ord. No. 24-001]
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
10 of this article.
