[Adopted 7-17-2017 by Ord. No. 127[1]]
[1]
Editor's Note: This ordinance also repealed former Art. III,
Ashton Ridge Apartments, adopted 3-11-1999 by Ord. No. 89.
This article shall be known and cited as the
"Blackman Charter Township Tax Exemption Ordinance - Ashton Ridge
Apartments Affordable Housing Project."
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 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 continuing economic viability of Ashton Ridge
Apartments (the "housing project") and for a determination of the
economic feasibility of the housing project in connection with the
anticipated sale of the housing project and its rehabilitation with
financing extended in reliance on such tax exemption.
[1]
Editor's Note: See the State Housing Development Authority
Act, MCLA § 125.1401 et seq.
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 acquire, rehabilitate, own and operate the housing project which
is located on Ashton Ridge Drive (see attached Exhibit A[2] for legal description) in the Township of Blackman which
serves low-income persons and families, and that the current owner
(as defined below) and the sponsor have offered to pay the Township
on account of the housing project an annual service charge for public
services in lieu of all ad valorem property taxes.
[2]
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 the housing project representing
rent or occupancy charges, exclusive of utilities.
The Michigan State Housing Development Authority.
Ashton Ridge Limited Dividend Housing Association Limited
Partnership, a Michigan limited partnership.
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
under Section 42 of the Internal Revenue Code of 1986, as amended.
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 rehabilitation, acquisition and/or permanent
financing of the housing project, and secured by a mortgage on the
housing project.
EPD Ashton Ridge Limited Dividend Housing Association, LP,
a Michigan limited partnership, its successors and assigns, and any
entity which may own the housing project and which 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 owner
of 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 Ashton Ridge Apartments, now owned
by the current owner and which might be owned by the sponsor, is of
this class.
The housing project identified as Ashton Ridge Apartments and
the property on which it is located shall be exempt from all ad valorem
property taxes from and after the enactment of this article. 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 recognition of the ongoing qualification of the current owner and
the housing project for exemption from ad valorem property taxes and
in consideration of the sponsor's offer to acquire and/or rehabilitate
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. The annual service charge shall be equal to
4% of the annual shelter rents actually collected by the owner of
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, the
current owner 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.
[1]
Editor's Note: See MCLA § 125.1415a(5).
Notwithstanding § 105-18, 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 and families shall be equal to the full amount of the taxes which would be paid on that portion of the housing project as 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, if repaid, such mortgage loan is replaced by a new mortgage loan
and the occupants of the housing project remain low-income persons
and families.
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 replaces
Ordinance 89, dated March 11, 1989.
This article shall become effective on August
24, 2017, as provided in the Township Charter.
