[HISTORY: Adopted by the Township Board of
the Township of Denton as indicated in article histories. Amendments
noted where applicable.]
[Adopted 4-1-1987 by Ord. No. 46]
This article shall be known and may be cited
as "Denton Township Tax Exemption Elimination Ordinance."
A.
The exemption from taxation granted by Section 16.114(15a)(1)
of the Michigan Statues Annotated, being MCLA § 125.1415a
of the Michigan Compiled Laws, to a housing project owned by a nonprofit
housing corporation, consumer housing cooperative or limited divided
housing corporation financed with a federally aided or a state housing
development aided mortgage or advance or grant from the State Housing
Development Authority shall be and is hereby terminated.
B.
Notwithstanding anything aforesaid, the Township Board
may, by the adoption of an appropriate ordinance, grant a tax exemption
to new housing projects proposed in the Township.
[Added 7-3-1996]
[Adopted 7-3-1996 by Ord. No. 59]
[Amended 9-5-2018]
It is acknowledged that it is a proper public purpose of the
State of Michigan and its political subdivisions to provide housing
for its citizens of low to moderate income and to encourage the development
of such housing by providing for a service charge in lieu of property
taxes in accordance with the State Housing Development Authority Act
of 1966 (1966 PA 346, as amended, MCL § 125.1401 et seq.).
The Township 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 persons of low to moderate
income is a public necessity, and as the Township will be benefited
and improved by such housing, the encouragement of the same by providing
certain 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 housing
developments which are constructed and financed in reliance on such
tax exemption.
[Amended 11-5-1997 by Ord. No. 61; 4-12-2005 by Ord. No. 67; 9-5-2018]
A.
The Township acknowledges that Huntington Place Limited Dividend
Housing Association Limited Partnership ("Huntington Place," or "sponsor")
has offered, subject to receipt of an allocation under the Low Income
Housing Tax Credit (LIHTC), to erect, own, and operate a housing development
identified as Huntington Place on certain property located at 1873,
1905, and 1907 West Nestel Road (being Lots 465-470, Deer Run Estates
#2) in the Township to serve persons of low to moderate income, and
that the sponsor has offered to pay to the Township on account of
this housing development an annual service charge for public services
in lieu of all ad valorem property taxes.
B.
The Township acknowledges that Emery Pines Limited Dividend Housing
Association, a Limited Partnership, ("Emery Pines," or "sponsor")
has offered, subject to receipt of an allocation under the LIHTC,
to erect, own, and operate a housing development identified as Emery
Pines Apartments on certain property located at Emery Road in the
Township to serve persons of low to moderate income, and that the
sponsor has offered to pay to the Township on account of this housing
development an annual service charge for public services in lieu of
all ad valorem property taxes.
C.
The Township acknowledges that Prudenville Apartments Limited Dividend
Housing Association Limited Partnership, a Limited Partnership, ("Maple
Grove Apartments," or "sponsor") has offered, subject to receipt of
an allocation under the LIHTC, to erect, own, and operate a housing
development identified as Maple Grove Apartments on certain property
located at 50 Maple Grove Avenue (Parcel Number 003-015-009-0120)
in the Township to serve persons of low to moderate income, and that
the sponsor has offered to pay to the Township on account of this
housing development an annual service charge for public services in
lieu of all ad valorem property taxes.
[Amended 9-5-2018]
As used in this article, the following terms shall have the
meanings indicated:
The State Housing Development Authority Act, being Public
Act 346 of 1966, as amended.[1]
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.
A development which contains a significant element of housing
for persons of low income and such elements of other housing, commercial,
recreational, industrial, communal, and educational facilities as
the Authority determines improve the quality of the development as
it relates to persons of low income.
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.
Any persons or entities 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.
[1]
Editor's Note: See MCLA § 125.1401 et seq.
It is determined that the class of housing developments
to which the tax exemption shall apply and for which a service charge
shall be paid in lieu of taxes shall be housing developments of elderly
persons and persons and families of low to moderate income which are
financed or assisted pursuant to the Act. It is further determined
that each of the properties included in this article is of this class.
[Amended 4-12-2005 by Ord. No. 66; 4-12-2005 by Ord. No. 67; 9-5-2018]
A.
The housing developments identified herein and the properties on
which they shall be constructed shall be exempt from all ad valorem
property taxes from and after the commencement of construction or
rehabilitation. The Township acknowledges that the sponsors and the
Authority have established the economic feasibility of the housing
development in reliance upon the enactment and continuing effect of
this article and the qualification of the housing development for
exemption from all property taxes and a payment in lieu of taxes as
established in this article. Therefore, in consideration of the sponsors'
offer to construct, own and operate the housing development, the Township
agrees to accept payment of an annual service charge for public services
in lieu of all ad valorem property taxes.
B.
Subject to the receipt of a mortgage loan, the annual service charge
for Huntington Place shall be equal to 8% of the annual shelter rents
actually collected.
C.
Subject to the receipt of a mortgage loan, the annual service charge
for Emery Pines shall be equal to 8% of the annual shelter rents actually
collected.
D.
Subject to the receipt of a mortgage loan, the annual service charge
for Maple Grove Apartments shall be equal to 8% of the annual shelter
rents actually collected.
[Amended 9-5-2018]
Notwithstanding § 280-7, the service charge to be paid each year in lieu of taxes for part of the housing development which is tax exempt and 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 development if the housing development were not tax exempt.
Notwithstanding the provisions of Section 15(a)(15)
of the Act, to the contrary, a contract between the Township and the
sponsor with the Authority as a 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.
[Amended 4-12-2005 by Ord. No. 66; 4-12-2005 by Ord. No. 67; 9-5-2018]
A.
For each sponsor described in this article, 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 Township
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 February 14 of each year. Each sponsor
shall submit a statement from an independent auditor, which shall
be acceptable by the sponsor and the Township, verifying the amounts
used to compute the payments are correct as reported. The statement
and supporting documents which may be from the sponsor's federal
tax return shall be due by February 28 following the tax year. Any
adjustment in payment shall be made on that date. Any claim for overpayment
will be adjusted in the next payment due.
B.
Payments not made in accordance with the above schedule shall be
subject to a 3% late charge plus 1% per month for as long as the payment
remains delinquent.
[Amended 4-12-2005 by Ord. No. 66; 4-12-2005 by Ord. No. 67; 10-3-2012; 9-5-2018]
A.
This article shall remain in effect for Huntington Place until December
31, 2027, 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.
B.
This article shall remain in effect for Emery Pines for a period
of 15 years after the certificate of occupancy is obtained from appropriate
officials, 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; provided that construction of the housing
development commences prior to December 31, 2007.
C.
This article shall remain in effect for Maple Grove Apartments for
a period of 20 years after the certificate of occupancy is obtained
from appropriate officials, 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; provided that construction or
rehabilitation of the housing development commences prior to December
31, 2020.
The Township of Denton may repeal and/or amend
this article subject to the provisions of the Act.
This article shall run with the land described
herein and be binding upon the successors and/or assigns of the sponsor
of the housing development.
[Amended 9-5-2018]
Notwithstanding anything contained herein to the contrary, should a sponsor fail to pay the final adjusted service charge in lieu of taxes granted hereunder, fail to provide the verification of the calculations used to make the payment in accordance with § 280-10 of this article, or fail to commence construction or rehabilitation of a housing development as specified in § 280-11 of this article, the service charge in lieu of taxes granted by this article shall automatically be terminated, at which point the Township will notice of termination to the sponsor of the housing development and the Authority by certified mail. Any such termination shall be retroactive to January 1 of the year in which it occurred.
The Township hereby acknowledges receipt of
documentation from the Authority indicating that the Authority's participation
with the housing development is limited solely to the allocation of
tax credits under the Low Income Housing Tax Credit Program.
