[Adopted 12-18-2017 by Ord. No. 130[1]]
[1]
Editor's Note: This ordinance also repealed former Art.
I, Park Forest Development, adopted 7-21-1975 by Ord. No. 31.
This article shall be known and cited as the "Blackman Township
Tax Exemption Ordinance — Park Forest Apartments 2017."
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. Blackman Charter 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 low-income persons and families is a public necessity,
and as Blackman Charter Township will be benefited and improved by
such housing, the encouragement of the same by providing a 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.
Blackman Charter Township acknowledges that the "sponsor" (as defined
below) has offered, subject to receipt of a mortgage loan from the
Michigan State Housing Development Authority, or a federally aided
mortgage loan, to acquire and rehabilitate, own and operate a housing
project identified as Park Forest on certain property located at Airport
and Springport Roads with the attached legal description in Blackman
Charter Township to serve low-income persons and families, and that
the sponsor has offered to pay Blackman Charter Township 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 State Housing Development Authority Act, Public Act 346
of 1966, as amended (MCL 125.1401 et seq.; MSA 16.114(1) et seq.).
The total collections during an agreed annual period from
or paid on behalf of all occupants of a housing development representing
rent or occupancy charges, exclusive of charges for gas, electricity,
heat, or other utilities furnished to the occupants.
The Michigan State Housing Development Authority.
Any person or family whose head, spouse, or sole member is
a person with disabilities as defined in 24 CFR 5.403.
Any a person who is 62 years of age or older, or a family
with the head of the household being 62 years of age or older, or
a disabled person as defined above to the extent that such person(s)
is eligible under federal law and regulations to live in a residential
development, such as Park Forest Apartments, which is assisted under
Section 8.
The housing project identified as Park Forest Apartments
located at Airport and Springport Roads, with the attached legal description.[1]
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 housing project, and secured by a mortgage on the
housing project.
That portion of the housing development that is set aside
for elderly persons and families of low and medium income.
FHC Fifteen Park Forest 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.
[1]
Editor's Note: Said legal description is included as
an attachment to this chapter.
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 developments for persons
and families of low and moderate income of which a portion is set
aside for elderly persons and families of low and moderate income
which projects are financed with a mortgage loan by the Authority
or another federally aided mortgage. It is further determined that
Park Forest is of this class.
Park Forest Apartments and the property on which it is located
shall be exempt from all ad valorem property taxes from and after
the acquisition of the housing development. Blackman Charter Township
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, Blackman Charter Township 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, the annual
service charge for the set-aside portion of the housing development
shall be equal to 4% of the difference between annual shelter rents
actually collected and utilities for the set-aside portion of the
housing development. The annual service charge for the remainder of
the housing development shall be equal to the amount that would be
charged in the event that portion of the housing development was subject
to ad valorem real estate taxation.
Notwithstanding the provisions of § 15(a)(5) of the
Act to the contrary, a contract between Blackman Township 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.
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 Blackman Charter 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 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 and shall not terminate
so long as a mortgage loan remains outstanding and unpaid, or the
Authority or HUD has any interest in the property, provided that acquisition
of the housing development commences within two years of the effective
date of this article.
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.
