This article shall be known and cited as the "City of Roseville Tax Exemption Ordinance – The Meadows."
[Adopted 10-14-2025 by Ord. No. 1347]
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.[1] The City of Roseville 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 Roseville 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 is constructed or rehabilitated with financing extended in reliance on such tax exemption.
[1]
Editor's Note: See MCL 125.1401 et seq.
B.
The City of Roseville 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 and rehabilitate, own and operate a housing project identified as The Meadows on certain property located at 31860 Nardelli Lane, Roseville, Michigan 48066 in the City of Roseville to serve low income persons and families, and that the sponsor has offered to pay the City of Roseville on account of this housing project an annual service charge for public services in lieu of all ad valorem property taxes.
Means the Michigan State Housing Development Authority.
Means 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.
Means the Low Income Housing Tax Credit Program administered by the authority under Section 42 of the Internal Revenue Code of 1986, as amended.
Means persons and families eligible to move into a housing project.
Means a loan that is state or 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.
Means standard communities, and any of its affiliates, successors or assigns that own the housing project and receive or assume a mortgage loan.
Means 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 The Meadows is of this class.
A.
The housing project identified as The Meadows 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 City of Roseville 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 City of Roseville 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 a percentage of the contract rents actually collected by the housing project during each operating year, in accordance with the following schedule:
Operating Years | Rate of Annual Service Charge |
|---|---|
1-15 | 8.77% |
16-25 | 9% |
26-30 | 10% |
B.
An administrative fee equal to 1% of the annual service charge shall be due and payable to the City of Roseville on an annual basis for each year that an annual service charge is due under this article, which shall be paid at the same time and in the same manner as the annual service charge.
Notwithstanding the provisions of Section 15(a)(5) of the Act to the contrary, a contract between the City of Roseville 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 § 304-12, 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 City of Roseville 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 June 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; MCL 211.1 et seq.).
This article shall remain in effect for a period of 30 years and shall not terminate so long as a mortgage loan remains outstanding. However, commencing in the 16th year of after sponsor completes the rehabilitation of the housing project, the City of Roseville shall have the right to terminate this article only if: a) the housing project has received three or more written citations from the City of Roseville in a single calendar year due to violations of the City of Roseville's building code; (b) the City of Roseville has issued a written notice of termination to sponsor due to such citations in such calendar year; and (c) sponsor (or any notice party, who shall be permitted to cure any such violation on behalf of sponsor) shall have failed to cure such violations within a period of 30 days following the date of such termination notice, unless the nature of such violation reasonably requires a period of longer than 30 days to cure in which case sponsor (or any notice party) shall be deemed to have cured such violation provided that it commences such cure within the initial thirty-day period after receiving the termination notice and diligently pursues the same to completion. A "notice party" within the meaning of this subsection shall mean any investor, lender, member, partner or affiliate of sponsor that delivers written notice to the City of Roseville that it desires to receive a copy of any termination notice issued by the City of Roseville pursuant to this subsection.