This article shall be known and cited as the
"Blackman Township Tax Exemption Ordinance — Arbors
at the Woods Project."
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 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.
AUTHORITY
The Michigan State Housing Development Authority.
DEVELOPMENT
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, to be known as "Heritage Place at the Woods."
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 has determined improves the quality of the development as
it relates to housing persons of low income.
LOW-INCOME PERSONS OR FAMILIES
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
Section 42 of the Internal Revenue Code of 1986, as amended.
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
Heritage Place at the Woods Limited Dividend Housing Association
Limited Partnership.
TOWNSHIP
The Township of Blackman, Jackson County, Michigan.
TOWNSHIP RESIDENT
Anyone currently residing in the Township or anyone currently
working or notified that they are hired to work in the Township.
UTILITIES
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.
Notwithstanding the provisions of Section 15(a)
of the Act 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.
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.