[Adopted 1-17-2000 by Ord. No. 90; amended
in its entirety 9-5-2000]
This article shall be known and cited as the
"Blackman Township Tax Exemption Ordinance."
A.
It is acknowledged that it is a proper public purpose
of the State of Michigan and its political subdivisions to provide
housing of its citizens of low 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, MCLA § 125.1401 et seq.,
MSA Section 116.114(1) et seq.]. The Township of Blackman 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 income is a public necessity, and as the
Township of Blackman will be benefitted 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; further, that
the continuance of the provisions of this article for tax exemption
and the service charge in lieu of 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.
B.
The Township of Blackman acknowledges that Maple Ridge
Limited Dividend Housing Association Limited Partnership (the "sponsor")
has offered, subject to receipt of a mortgage loan from the Michigan
State Housing Development Authority, or other lender, to erect, own
and operate a housing development identified as Maple Ridge on certain
property located at and more particularly described as:
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That part of the NE 1/4, Section 36, T2S, R1W,
Blackman Township, Jackson County, Michigan, described as: Commencing
at the E 1/4 corner of Section 36, thence N00°00'00" E 313.24
feet along the East line of said NE 1/4; thence S71°16'00" W 390.30
feet along the centerline of East Michigan Avenue; thence N00°04'45"
E 330.67 feet to the PLACE OF BEGINNING of this description; thence
S86°16'29" W 289.59 feet; thence N00°12'00" W 157.02 feet
to the SW corner of Lot 24, Block 4, Maple Ridge Subdivision, according
to the recorded plat thereof, said point being the NW corner of the
SE 1/4, of the SE 1/4, of the NE 1/4, Section 36; thence N00°04'02"
E 185.48 feet along the West line of said Block 4 to the NW corner
of Lot 23, Block 4; thence N89°49'07" E 188.97 feet along the
Northerly line of Lots 20, 21, 22, 23 to the NE corner of Lot 20,
Block 4; thence S00°23'49" E 18.90 feet along the West line of
Lot 16 to the SW Corner of Lot 16, Block 4; thence N89°25'54 E
171.73 feet along the South line of Lot 16, Block 4 to the SW corner
of Lot 11, Block 3 of Maple Ridge Subdivision; thence N00°00'53"
W 42.73 feet along the West line of Lot 11 to the NW corner of Lot
11; thence N 89°58'48" E 131.93 feet along the North line of Lot
11 to the NE corner of Lot 11; thence S00°34'29" W 8.02 feet along
the East line of Lot 11; thence N89°44'47" E 131.92 feet along
a line which is 8.00 feet Southerly and parallel with the North line
of Lot 4, Block 3; thence S00°04'29" E 227.73 feet along the West
R.O.W. line of Dettman Road; thence S89°55'31" W 113.00 feet;
thence S71°16'00" W 34.96 feet; thence S00°04'45" W 39.08
feet to the place of beginning. Subject to easements of record. This
parcel contains 4.083 Acres.
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C.
In the Township of Blackman to serve persons of low
income, and that the sponsor has offered to pay the Township of Blackman
on account of this housing development an annual service charge for
public services in lieu of all taxes.
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, of the State of Michigan, as amended.[1]
The total collections during an agreed annual period from
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.
As defined by the U.S. Department of Housing and Urban Development
in regulations promulgated pursuant to the U.S. Housing Act of 1937,
as amended. (Delete if inapplicable.)
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 to improve the quality of the development
as it relates to housing for persons of low income.
A loan to be made by the Authority to the sponsor for the
construction and/or permanent financing of the housing development.
A household composed of one or more persons at least one
of whom is 55 years of age or more at the time of initial occupancy.
Person(s) or entities which have applied to the Authority
for mortgage loan to finance a housing development.
Fuel, water, sanitary sewer service and/or electrical service
which are paid by the housing development.
[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 such taxes shall be multiple dwellings for
senior citizens which are located in Blackman Charter Township and
which are financed or assisted pursuant to the Act. It is further
determined that Maple Ridge is of this class.
The housing development identified as Maple
Ridge and the property on which it shall be constructed shall be exempt
from all property taxes from and after the commencement of construction.
The Charter Township of Blackman, acknowledging that the sponsor 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, and in consideration of the sponsor's
offer, subject to receipt of a mortgage loan from the Authority, to
construct, own and operate the housing development, agrees to accept
payment of an annual service charge for public services in lieu of
all property taxes. The annual service charge shall be equal to 7%
of the difference between annual shelter rents actually collected
and utilities.
A.
Notwithstanding § 105-31, the service charge to be paid each year in lieu of taxes for the 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 was not tax exempt.
The 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 Charter Township of Blackman except
that the annual payment shall be paid on or before August 31 of each
year.
Those housing projects which are currently exempt
from taxation and are already making payment in lieu of tax (PILOT)
payments shall not be affected, nor shall the terms of the tax exemption
and PILOT payments for those housing projects be changed by reason
of the passage of this article.
This article shall remain in effect and shall
not terminate so long as the mortgage loan remains outstanding and
unpaid or the Authority has any interest in the property; provided
that construction of the housing development commences within one
year from the effective date of this article, and provided further
exemption shall not exceed 35 years from the date of the first payment
towards amortization of the mortgage loan.
Notwithstanding the provisions of Section 15(a)(5)
of the Act[1] to the contrary, a contract between the Charter Township
of Blackman 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).
