[Adopted 3-15-2001 by Ord. No. 95]
This article shall be known and cited as the
"Blackman Township Tax Exemption Ordinance — Arbors
at the Woods 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 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 Michigan 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 ("Township")
is authorized by this Act to establish or change a 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 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 the proposed housing development ("development"), which is to be
constructed and financed in reliance on such tax exemption ordinance.
B.
The Township acknowledges that the Arbors at the Woods
Limited Dividend Housing Association Limited Partnership ("sponsor")
has offered, subject to receipt of an allocation under the low income
housing tax credit ("LIHTC") laws, to erect, own, and operate a housing
development on certain property located in the Township to serve persons
of low income and that the sponsor has offered to pay the Township
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 low-income occupants of the development, as provided for herein
in the definition of “low-income persons or families,”
representing rent or occupancy charges, exclusive of the portion of
said charges attributable to gas, electricity, heat or other utilities
furnished to the occupants by the sponsor.
The Michigan State Housing Development Authority.
The proposed multiple-family housing development located
in the Township of Blackman, Jackson County, Michigan, on land more
particularly described on Exhibit A, attached hereto and made a part
hereof,[2] to be known as "Heritage Place at the Woods."
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 has determined improves the quality of the development as
it relates to housing persons of low income.
Those persons and families whose income is 60% or less of
area median income as adjusted for family size and who are determined
to be eligible to move into the development under the provisions of
Section 42, the units of whom shall be rent restricted.
Section 42 of the Internal Revenue Code of 1986, as amended.
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.
Heritage Place at the Woods Limited Dividend Housing Association
Limited Partnership.
The Township of Blackman, Jackson County, Michigan.
Anyone currently residing in the Township or anyone currently
working or notified that they are hired to work in the Township.
Fuel, water, sanitary sewer service and/or electrical service
which are paid by the sponsor.
It is determined that the class of housing developments
to which the tax exemptions shall apply and for which a service charge
shall be paid in lieu of such taxes shall be Section 42 housing developments
which have received and LIHTC allocation from the Authority pursuant
to Section 42. Based on representations and warranties of the sponsor,
it is determined that the development is a housing development eligible
for tax exemption provided by Section 15(a) of the Act.[1]
[1]
Editor's Note: See MCLA § 125.1415a.
A.
The development and the property on which it will
be constructed shall be exempt from all property taxes commencing
with the first January 1st following the commencement of construction
or compliance by the sponsor with all requirements imposed on the
owner by Subsection (1) of Section 15(a) of the Act,[1] whichever is later. The Township, acknowledging that the
sponsor and the Authority have established the economic feasibility
of the development in reliance upon the enactment and continuing effect
of this article and the qualification of the 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 and a LIHTC allocation from the Authority,
to construct, own and operate the development, agrees to accept payment
of an annual service charge for public services in lieu of all property
taxes.
[1]
Editor's Note: See MCLA § 125.1415a(1).
B.
For 2001 and 2002, the annual service charge shall
be the total real estate taxes which would otherwise be assessed against
the lands and premises on which the development is to be built if
they remained in an unimproved condition. Thereafter, the annual service
charge shall be of 10% of the collections from the total annual shelter
rents. Notwithstanding the foregoing, for all years during which this
section is operative, the annual service charge shall be no less than
the total real estate taxes which would otherwise be assessed against
the lands and premises on which the development is to built if they
remained in an unimproved condition.
C.
The determination of when each housing unit in the
development is occupied by low-income persons or families shall be
made for each year as of December 31 of the immediately preceding
year.
Notwithstanding the provisions of Section 15(a)
of the Act[1] to the contrary, a contract between the 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.
[1]
Editor's Note: See MCLA § 125.1415a.
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 except that
the annual payment shall be paid on or before August 21 of 2001.
To the extent permissible under federal, state,
or local fair housing laws, the sponsor shall give preference for
occupancy of the development to qualified applicants who are Township
residents.
The benefits of the tax exemption granted pursuant
to this article shall be allocated by the sponsor exclusively to the
low-income persons or families of the development in the form of reduced
rent. Such benefits shall not be allocated to the market rate persons
or families. The sponsor shall, at the request of the Township, submit
to the Township such evidence and documentation as may be reasonably
necessary to verify sponsor's compliance with this requirement.
Commencing with the tax year 2001 and ending
with the tax year 2031, this article shall remain in effect and shall
not terminate from the effective date hereof, provided that the development
remains subject to income and rent restricts pursuant to Section 42,
and that construction of development commences on or before December
31, 2001.
Subject to any limitations imposed by law, the
sponsor shall provide to the Township such accounting records, audits
and financial reports as the Township shall reasonably require to
verify the computation of the annual service charge as provided by
this article. The sponsor shall maintain such records of rent or occupancy
charges received and the occupancy of units in the development as
will permit the Township to verify which of the units in the development
have been occupied by low-income persons or families. Subject to any
limitations imposed by law, the books and records of the sponsor pertaining
to the development shall be available for review and audit by the
Township at all reasonable times.
Annual service charges payable pursuant to this
article shall be a lien of the development and, if delinquent, shall
be collected and enforced in the same manner as general property taxes.
