[Adopted 3-23-2015 by Ord. No. 122[1]]
[1]
Editor’s Note: This ordinance also repealed former Art.
II, Reflections Housing Development, adopted 6-21-1993 by Ord. No.
75.
This article shall be known and cited as the "Blackman Township
Tax Exemption Ordinance-Jackson Elderly Limited Dividend Housing Association
Limited Partnership."
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. 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 low-income persons and families is a public necessity, and as
the Township 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 project that is constructed or rehabilitated with financing
extended in reliance on such tax exemption.
B.
The Township 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 construct,
own and operate a housing project identified as Reflections Senior
Housing (Jackson LDHA LP) on certain property located at 2771 Airport
Road (see attached Exhibit A[1] for legal description) in the Township of Blackman to
serve low-income persons and families, and that the sponsor has offered
to pay the Township on account of this housing project an annual service
charge for public services in lieu of all ad valorem property taxes.
[1]
Editor's Note: Exhibit A is on file in the Township offices.
As used in this article, the following terms shall have the
meanings indicated:
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[1]) 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.
Jackson Elderly Limited Dividend Housing Association Limited
Partnership and any entity that receives or assumes a mortgage loan.
Charges for gas, electric, water, sanitary sewer, trash and
other utilities furnished to the occupants that are paid by the housing
project.
[1]
Editor's Note: See MCLA § 125.1411.
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 Reflections-Jackson Elderly LDHA LP, is of
this class.
The housing project identified as Reflections-Jackson Elderly
LDHA LP 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 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 construct and operate the housing project,
the 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 loan, the annual service charge shall be
equal to 5% of the annual shelter rents actually collected by the
housing project during each operating year.
Notwithstanding the provisions of Section 15(a)(5) of the Act[1] to the contrary, a contract between the Township and the
sponsor with the Authority and lender as third-party beneficiaries
under the contract, to provide tax exemption and accept payments in
lieu of taxes, as previously described, is effectuated by enactment
of this article.
[1]
Editor's Note: See MCLA § 125.1415a(5).
Notwithstanding § 105-8, 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 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 August
15 of the following year. Collection procedures shall be in accordance
with the provisions of the General Property Tax Act (1893 PA 206,
as amended; MCLA § 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 housing
project remains subject to income and rent restrictions under the
LIHTC program, or the housing project remains compliant with the income
and rent restrictions set forth in the LURA dated October 1, 1993,
and recorded at Liber 1384, page 1098, Jackson County, Michigan, irrespective
of whether such LURA has terminated or not, but not more than 35 years.
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.
All ordinances or parts of ordinances inconsistent or in conflict
with the provisions of this article are repealed to the extent of
such inconsistency or conflict.
This article shall replace/repeal Blackman Township Ordinance
No. 93-75, adopted on June 21, 1993, effective August 1, 1993, and
become effective on the later of 30 days after publication or as otherwise
provided in the Charter, or upon payoff and discharge of an existing
mortgage dated October 1, 1993, by and between Jackson Elderly LDHA
LP and the Michigan State Housing Development Authority.
