This article shall be known and cited as the
"Blackman Township Tax Exemption Ordinance."
As used in this article, the following terms
shall have the meanings indicated:
ACT
The State Housing Development Authority Act, being Public
Act 346 of 1966, of the State of Michigan, as amended.
ANNUAL SHELTER RENT
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.
AUTHORITY
The Michigan State Housing Development Authority.
CONTRACT RENTS
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.)
HOUSING DEVELOPMENT
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.
MORTGAGE LOAN
A loan to be made by the Authority to the sponsor for the
construction and/or permanent financing of the housing development.
SENIOR CITIZEN
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.
SPONSOR
Person(s) or entities which have applied to the Authority
for mortgage loan to finance a housing development.
UTILITIES
Fuel, water, sanitary sewer service and/or electrical service
which are paid by the housing development.
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.
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 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.