[HISTORY: Adopted by the Township Board of the Township of
Grosse Ile as indicated in article histories. Amendments noted where
applicable.]
[Adopted 3-13-2000 by Ord. No. 282]
A.Â
The Township acknowledges that it has the authority under the provisions
of P.A. 346 of 1966, as amended, to establish a service charge to
be paid in lieu of taxes by any class of housing exempt from taxation
under this Act. Further, the continuation of the provisions of this
article for tax exemption and the service charge in lieu of taxes
during the effective period of this article are essential to the determination
of economic feasibility of housing developments which are constructed
and financed in reliance of such tax exemption.
B.Â
The Township acknowledges that Oakwood Construction Company dfb/a
The Oakwood Companies (the "sponsor") has offered, subject to receipt
of an allocation under the Low Income Housing Tax Credit (LIHTC),
to erect, own, and operate a housing development on certain real property
in the Township of Grosse Ile to serve senior persons, and that the
sponsor has offered to pay the Township on account of this development
an annual service charge in lieu of taxes for that part of the development
that meets the criteria established in the Act.
All terms shall be defined as set forth in the State Housing
Authority Development Act of 1966, being Public Act 346 of 1966, of
the State of Michigan, as amended, except as follows:
The State Housing Development Authority Act, being Public
Act 346 of 1966, as amended.
The total collections during an agreed annual period from
all occupants of a housing development representing rent or occupancy
charge, exclusive of charges for gas, electricity, heat, or other
utilities furnished to the occupants.
The Michigan State Housing Development Authority.
A development which contains a significant element of housing
for senior persons of low or moderate income and such elements of
other housing, commercial, recreational, industrial, communal and
educational facilities as the Authority determines improve the quality
of the development as it relates to housing for senior persons of
low income.
Housing occupied by a single person who is 55 years of age
or older, or housing occupied by a family and/or household in which
at least one member is 55 years of age or older and all other members
are 50 years of age or older.
Annual shelter rent minus utility costs.
A single person who is 55 years of age or older, or a household
in which at least one member is at 55 years of age or older, and all
other members are 50 years of age or older.
Senior persons who meet the eligibility criteria set by the
Authority and/or the federal government.
Persons or entities which have applied to the Authority for,
or previously received from the Authority, a mortgage loan to finance
a housing development, and includes any successors or assigns of the
original sponsor.
Those costs for fuel, electricity, water, sanitary sewer,
and those other expenses 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 housing for seniors, which
are financed or assisted pursuant to the Act. It is further determined
that the project proposed by the sponsor is of this class.
The housing development proposed by sponsor and the property
on which it shall be constructed shall be exempt from ad valorem property
taxes commencing on the December 31 following the issuance of the
certificate of occupancy. The Township, 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 ad valorem property taxes and a payment in
lieu of taxes as established in this article, and in consideration
of the sponsor's offer, subject to the receipt of a mortgage
loan from the Authority, to construct, own, an operate the housing
development, agrees to accept payment of an annual service charge
in lieu of all property taxes. The annual service charge shall be
equal to 6% of the gross shelter rents for as long as the sponsor
is exempt from taxation under the Act, but never more than 50 years.
Notwithstanding the provisions of § 244-4, 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 taxes which would be paid on that portion of the housing development if the housing development were not tax exempt. The total number of apartments in the development shall not exceed 50, of which not more than 40 apartments will house senior persons of low or moderate income.
[Amended 4-7-2001 by Ord. No. 299]
This article shall remain in effect and shall not terminate
so long as the original mortgage remains outstanding and unpaid or
the Authority retains any interest in the property, provided that
the construction of the Housing Development commences by December
31, 2001, and further provided that the owner is not in default of
the terms of this article or any other obligation to the Township.
The owner shall be given written notification of any default, along
with a thirty-day period in which to correct the default.
The annual service charge in lieu of taxes as determined under
this article shall be payable in the same manner as general property
taxes to the Township, except that the annual payment shall be paid
on or before April 1 of each year.
